Amazon Reaches 3Q Revenue; Wayfair Growth Rate; Commerce Marketing Funding
By Cleveland AdminLast week, Amazon reported its total revenue grew 37% in 3Q, reaching $96B (vs. $89B in the previous quarter), with North American revenue decelerating slightly to 39% Y/Y (vs. 43% in Q2). Overall, however, Amazon’s 3Q20 results suggest consumers demonstrated an elevated level of demand throughout the quarter, prioritizing online shopping. While Amazon experienced challenges in keeping up with demand in the early months of the pandemic, the eTailer’s recent results suggest it has been able to catch up to pandemic-level online demand. Our research shows the health of the eCommerce market continues to be strong, as Amazon’s strong results are further supported by gains seen out of other eTailers and eTail platforms including Shopify, eBay, and Etsy, all of which combine to show a strong demand environment with the consumer continuing to favor online channels.
Source: Jaap Arriens/NurPhoto via Getty Images
Wayfair Grows ~67%:
Wayfair’s US net revenue grew ~67% in Q3 (down from ~83% in Q2) in the most recent quarter. The broader home goods sector has made significant inroads as a result of COVID-19 with consumers spending more money on their homes. Management noted that Wayfair’s Way Day, which was held in September, resulted in the biggest sales days in company history and strongly contributed to this quarter’s growth. While Wayfair is in a strong position to win during the pandemic with the categories it offers, it is uncertain if this shopping behavior will hold post pandemic considering the deceleration in the latest results.
Source: Businesswire
Funding Commerce Marketing:
With consumers continuing to prioritize online channels for more of their shopping, commerce marketing is becoming increasingly critical to a growing eCommerce business. It also allows brands to connect to consumers close to the point of purchase. Amazon leads the charge in this area with its mature suite of digital activations, and nearly every pureplay and omnichannel retailer is developing and enhancing these capabilities as a result. Our eCommerce Teams benchmark suggests general marketing budgets and customer / trade spend budgets are the two most popular buckets for brands to fund commerce marketing.
