E-commerce

Retailers struggling with inventory stock, profitability challenges

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July 20, 2020

The average order value from U.S. online purchases has dropped to its lowest level since the coronavirus pandemic hit at the end of March and it's having a big impact on the retail industry when it comes to shifting stock and maintaining profitability given a decrease in consumer confidence.

That's the prime finding of an Emarsys study that reported the average value of online orders dipped 23% compared to a year ago, July 12.

Meanwhile revenue growth for retailers hit just 64% at the start of July, the slowest growth since the height of global lockdown in April, according to a press release on the data.

"U.S. retailers have a tough choice right now. Either they discount products en masse to shift them, which directly affects profitability, or they keep their stock until this time next year, which means missing out on potential sales in the short term and having out-of-date stock next year," Alex Timlin, senior vice president of verticals at Emarsys, said in the release.