Nosto: Fashion E-commerce Report 2019

According to a new report from Nosto, “Fashion E-Commerce 2019,” mobile devices have become the primary channel for purchases.

Fashion e-commerce revenue is growing rapidly

Between Q1 and Q4 2018, global fashion e-commerce average revenue per visit (RPV) grew 33% on desktop and 38% on mobile, respectively.

Conversion rates (CR) have increased over time. In 2018, mobile CR grew from 1.2% to 1.5%, while desktop CR grew from 2.2% to 2.7%. Cart abandonment rates (CAR) have remained relatively stable.

In summary, fashion retailers should focus on improving personalization to drive upsells and cross-sells rather than optimizing purchases of items already in the shopping cart.

Fashion mobile e-commerce era has arrived

Mobile accounted for 55% of fashion e-commerce traffic in the first quarter of 2018, growing to 62% in the fourth quarter. Although converting customers on mobile devices presents considerable challenges, in the fourth quarter of 2018, mobile revenue share reached 46%, surpassing desktop (44%).

The average order value (AOV) of mobile and desktop is getting closer. However, the RPV of mobile is still 52% lower than that of desktop.

All other things being equal, as mobile traffic and average order value grow, increasing conversion rates will have a huge impact on revenue per visit and ultimately profitability.

Fashion consumers’ changing shopping habits

Although people’s browsing behavior has not changed much, with the duration of each shopping session on mobile devices increasing from 163 seconds in the first quarter to 165 seconds in the fourth quarter, while the duration of each session on PCs decreased from 242 seconds to 239 seconds, mobile traffic and revenue share continued to grow. And the shopping cart abandonment rate remained stable.

This shows that more and more fashion consumers are increasing the proportion of mobile phone shopping. The limitation of smaller mobile phone screens has maximized the conversion speed of consumers. This requires retailers to provide targeted and personalized options.

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