Mention Me - Online retail space stabilises above pre-Covid pandemic levels

Despite a 28% drop in quarterly online sales YoY, the e-commerce sector is 11% up on pre-pandemic times, according to research from referral engineering platform Mention Me.

The firm tracks online sales and referrals data across its 450 customers, in this case looking back to Q1 2020 (both referred and non-referred sales).

Beauty was the top performing sector compared to pre-pandemic levels, up 26% from Q1 2020.

Online food and drink sales, one of the biggest growth sectors during the coronavirus outbreak, held onto its gains, up 20%.

Meanwhile, home and garden was up 9%, suggesting a permanent shift to online even for bigger ticket items.

Fashion, normally a bellwether for the sector, was down -5.3%.

However, conversions from referrals (purchase rate) increased by 4%, indicating that online shoppers are more reliant on suggestions from friends and family when not shopping in-store.

Easing travel restrictions has seen consumer spending rise in the travel and hospitality sector in Q1 2022, with online sales increasing by 45% YoY. 

Simon Dring, Head of Retail Insights at Mention Me, says: “Our figures suggest the market is stabilising after being rocked by volatility over the past two years..”

“The e-commerce market is significantly bigger today than at the start of 2020; lockdown has permanently shifted both consumer habits and how brands operate and build advocacy.”