Ecommerce Pulse Report
Ecommerce Pulse Report for Electronics
Online Electronics sales are affected by all kinds of outside influences — innovation, new product launches, the season, pop culture, social media and the economy. Anticipating the gizmos, gadgets and productivity tools customers will want and having them when and where they want them is a constant challenge. See how your company performance compares to industry peers from the Signifyd Commerce Network.
Sure, everyone agreed that commerce was shifting online at an impressive rate.
What nobody knew was that those rosy projections weren’t even close. Instead, 2020 has delivered the Great Acceleration, a turning point at which ecommerce grew at warp speed as consumers discovered the convenience and increased selection available through online buying.Ecommerce has been propelled five years into the future, with sales figures we were expecting in 2025 arriving today.
Welcome to the future, a world in which online sales have become increasingly important to Electronics merchants. The growing prominence of ecommerce requires new thinking around merchandising, marketing and customer experience.“Retail executives have been fixated on the dramatic increase in ecommerce sales, but the more interesting story is less about the last few months and more about the next few years. Based on the totality of transactions passing through Signifyd’s network, we see that this cohort of new users are buying online for the first time, and then returning to shop online again at the same or another merchant within one month. Returning to shop in short order is the way new spending habits form and share-of-wallet shifts.”
J. BENNETT, VP OPERATIONS & CORP. DEVELOPMENT, SIGNIFYD
Electronics brands and retailers have seen impressive growth, but not all segments are created equal. Wide variation in sales exists between segments.
The fact that our daily lives have become intertwined with electronics is apparent when we did into the numbers. The differences in performance over time of segments no doubt is affected by whether products are for entertainment, communication or productivity.Pulling the levers on pricing and promotions has had a profound effect on the overall business.
Given the fierce competition among electronics brands and the choice that consumers have, Electronics merchants need to keep a close eye on how their pricing and promotion strategies are affecting average order values. AOV provides a snapshot of one aspect of the health of the vertical. That picture is always best viewed in context. What larger trends are behind the shifts in AOV?Electronics shoppers have shown a new enthusiasm for ordering online and picking up in store or at the curbside.
Consumers shopping for Electronics have discovered the convenience and efficiency of buying online and picking up either in the store or at the curbside. Consumers have indicated that now that they’ve tried the channel, they see no reason to abandon it. This chart shows how Electronics consumers’ adoption of in-store and curbside pickup has changed over time.Fraud pressure is a moving target with fraudsters constantly probing for weaknesses.
Electronics are ideal for reselling. But fraudsters target the various segments of the Electronics vertical in different times and ways. Signifyd’s Fraud Pressure Index charts the rise and fall of very high risk — and presumably fraudulent — orders over time. Fraud levels are compared to a Q1 benchmark of 100%.Current fraud trends to watch out for
With big surges comes operational gaps. Expect challenges from these fraud pressure vectors:
eBay marketplace “Triangulation” Fraud
The fraudster creates genuine seller profile on marketplaces and uses stolen card data to fulfill the order from another retailer. Attack vector moved to popular SKUs over the summer.
Look-alike Fraud Websites
Fraudsters clone brand websites to replicate brand look onto similar URL, but do not ship product after accepting payment. Trending SKUs will be targeted.
Touchless Delivery Abuse Risk
As FedEx and UPS moved to no-signature delivery, retailers saw an uptick of Item-Not-Recieved (INR) and Significantly-Not-As-Described (SNAD) claims.
Curbside Pickup BOPIS Mule Fraud
Many retailers like Dick's Sporting Goods and Best Buy accelerated BOPIS, in the form of touchless curbside pickup, to counter store. They also saw an uptick in mule fraud.
Methodology
What’s in our Electronics Index?
The Ecommerce Pulse Report from Signifyd was designed to provide ongoing coverage of changes and trends in the ecommerce landscape. The data in this report illustrates how the Electronics vertical is performing now compared to historical performance. Data is aggregated by category across 10,000+ ecommerce merchants globally.
Categories
- Consumer Electronics
- Photography
- Musical Instruments & DJ Equipment
Fast Facts
- Full fidelity on 2.6M orders per month (session behavior, cart data, payment info, shipping and billing info)
- 98% of transactions are identified automatically because of the breadth and strength of our network