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Extensiv Market Insights Uncovers Rapid Evolution in Ecommerce Heading into 2H 2023

Third-Party Sellers Flock to Amazon as Order Volumes Show Significant Increases in Q2

Extensiv delivering omnichannel software solutions for warehouse, inventory, and order management — today announced a summary of key findings from its 1H 2023 Market Insights research. The data reveals significant year-over-year growth in order volume for third-party sellers on Amazon, a gradual increase in Shopify volume, and a substantial decline in other third-party marketplaces.

Launched in 2020, the Extensiv Market Insights website offers order volume trends for leading vendors such as Amazon, Shopify, and a consolidation of dozens of other smaller marketplaces.

Extensiv Market Insights shows changes in order volume per merchant processed through leading vendors such as Amazon, Shopify, including:

  • Year-over-year volume trends. Extensiv Market Insights shows a macro view of year-over-year order volume trends beginning in 2020.
  • Week-over-week volume trends. Extensiv Market Insights also shows changes to order volumes on a week-over-week basis. This enables brands to benchmark their own results to the seasonality changes across the broader e-commerce landscape.

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Key Highlights from July 2023 Extensiv Market Insights:

  • Third-party sellers consolidating around Amazon: Extensiv data indicates a 17 percent year-over-year increase in order volumes per merchant selling via Amazon in 1Q 2023; and a 44 percent year-over-year increase in 2Q 2023. Other industry data shows that third-party sellers accounted for 59% of all Amazon marketplace sales in the 4Q of 2022 and 1Q of 20231. Amazon claimed $29.8 billion in third-party seller services in the 1Q, a 17.7 percent increase from the comparable quarter in 20222.
  • Shopify revenue growth slows, and average order volume is flat: Extensiv data shows Shopify experienced -1 percent growth in Average Order Volume Per Merchant during 1Q 2023, followed by a 9 percent increase in 2Q 2023. In May 2023, Shopify reported a 25 percent increase in first-quarter total revenue to $1.5 billion compared to the previous year3. While analysts suggest a slower growth rate for Shopify than in the past, the company continues to exhibit growth. Since order volumes are flat, the increased revenues suggest more high-priced items.
  • Other marketplaces on the decline: Notably, all other marketplaces covered by Extensiv Market Insights are experiencing a decline. Year-over-year Average Order Volume increased by 5 percent in 2023 but dropped to -4 percent in the second quarter.

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“We continue to witness the need for brands, supply chains, and distribution strategies to remain adaptable as we enter the second half of 2023,” said Rachel Trindade, Chief Marketing Officer of Extensiv. “Uncertain economic conditions have influenced consumer behavior, with an increasing number prioritizing lower shipping costs over faster delivery. Amazon’s expanding third-party seller network and sellers’ experimentation with distribution costs and delivery times contribute to its powerful virtuous cycle. Both brands and 3PLs need to consider geographically dispersed fulfillment to drive the best customer experience.”

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