Although March and April 2020 yielded online sales records across multiple verticals, we can see that the YoY online growth started to slow down in May. This is true for both pure e-commerce companies as well as hybrid businesses with both online and offline stores.
The pace of online and e-commerce growth could be slowing down for three major reasons:
- The states in America are slowly reopening, allowing brick-and-mortar stores to return to regular hours with certain limitations.
- The unemployment filings in the USA continue to grow, and people are in no rush spending their stimulus checks.
- The first wave of extensive shopping resulted in consumer saturation, which hurts today’s sales.
Memorial Day sales definitely drove a short-term response at the end of May, but for the rest of the summer, expect the slowdown to continue.