Analysis Finds Correlation Between Home Sales and Online Big Ticket Sales

• by Jack Loechner , Staff Writer @mp_research, November 3, 2014

According to BigCommerce, in its first report on client e-commerce sales, higher home sales led to sharp growth in online sales of big-ticket items. The quarterly report, analyzing sales data from 55,000 online stores, shows that gross merchandise volume per store was 25% higher during Q3 2014 than during Q3 2013. The sales increases in July, August and September indicate a strong back-to-school shopping season, the report says. The top-performing categories included lifestyle and home and computer and electronics.

The Ecommerce Report is an index of quarterly results from small and mid-sized ecommerce merchants in the U.S. This data was pulled for July through September 2014 across a wide range of industries. The trends uncovered show that nimble ecommerce businesses are reaping the benefits of strong economic growth.

• All three months of the quarter saw increased year-over-year spend, indicating a particularly strong back-to-school shopping season
• Bolstered by rising new-home sales, lifestyle and home was the top performing product category in Q3
• In terms of best U.S. cities for small businesses, Los Angeles was the top performing region with the highest value of goods sold by ecommerce entrepreneurs

Consumers spent significantly more per purchase in some categories. In computers and electronics, for example, average order value grew 25% year over year. The business and educational category had an average order value 45% higher in Q3 2014 compared to the same quarter in 2013. In the hobbies and travel category, consumers spent, on average, 6% more than they did in Q3 2013, says the report.

The lifestyle and home category experienced the biggest web sales growth at 71% total growth and 41% average store growth over Q3 2013. The report attributes the growth in part to rising new home sales.

This growth suggests consumers are once again investing in items like home furnishings, appliances and decor as the housing market recovers, the report states. Other high-growth categories include:

• Automotive and industrial, 62% growth
• Fashion, beauty and bridal, 56% growth
• Computers and electronics, 56% growth

The report also ranked cities for online selling based on purchasing volume and merchant revenue. Purchasing volume was calculated as how much shoppers spent, based on their location. Merchant volume was calculated based on where the merchant is located. For example, Overstock.com Inc., which is based in Salt Lake City, shot that location into the Top 10.

The Top 10 Cities In Terms Of Online Purchasing Volume Were:

1. New York
2. Houston
3. Chicago
4. Los Angeles
5. Miami
6. Austin
7. San Diego
8. Dallas
9. San Francisco
10. Las Vegas

The Top 10 Cities For Online Merchant Revenue Were:

1. Los Angeles
2. Austin
3. Cleveland
4. New York
5. Denver
6. San Diego
7. Chicago
8. Houston
9. Miami
10. Salt Lake City

On average, monthly GMV (Gross Merchandise Volume) per store was 20% higher in 2014 than it was in 2013. The third quarter was especially strong… 25% higher than last year. Back To School continued to gain momentum as a major shopping season. Increased spend started in July and brought in a steady stream of revenue through September. This was a significant change from 2013, when sales spiked in August and then sharply decreased.

For access to more information from BigCommerce, please visit here.