Consumer demand is stabilizing after two highly active months, and the e-commerce sector continues to show year-over-year growth across key metrics, including turnover, gross profit, and orders.
However, ad spend is increasing at an even higher rate than revenue/gross profit growth, leading to a decline in ROAS (Return on Ad Spend) and POAS (Profit on Ad Spend) on a YoY basis. This is likely inevitable, as competition and media prices are continuously increasing, and we should not expect that to change in the future.
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Overall: Consumer demand is stabilizing following peak season, and there is yearly growth in turnover, gross profit, and orders. However, ad spend is growing at a faster rate, leading to a decline in ROAS (return on ad spend) and POAS (profit on ad spend) over the year.
Turnover: Up 5.4% YoY and down 16.7% from last month, reflecting steady yearly growth in sales.
Gross profit: Up 2.9% YoY and down 21.3% from last month, reflecting a yearly improvement in profitability.
Ad Spend: Up 6.4% YoY and down 20.14% from last month, showing that ad spend is increasing more than gross profit/revenue, leading to a decline in ROAS and POAS.
Orders: Up 3.8% YoY and down 22.9% from last month, reflecting stable yearly consumer demand and sales volume.
POAS: Down 3.2% YoY and down 1.5% from last month, indicating reduced efficiency in ad spend utilization.
ROAS: Down 0.9% YoY and up 4.3% from last month and 3.7% YoY, indicating reduced efficiency in ad spend utilization yearly.
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