Exclusive Data: Here’s How This Labor Day Impacted eCommerce

September 9, 2020
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With Labor Day behind us, now is the time for online retailers to take a look at industry data and benchmarks to see what lessons they can take away for the major sales events coming up later this year.

At Namogoo, we had expected to see a major increase in online sales over Labor Day weekend, and we’re happy to see that that’s mostly what happened. Looking at the data from our clients’ online traffic, we can see that most of these industries experienced significant jumps in total conversions ‒ both as compared to the same period a week earlier and as compared to last Labor Day weekend.

Unsurprisingly, our data also shows the significant percentage of online shoppers impacted by Customer Journey Hijacking over Labor Day weekend, depriving online retailers and eCommerce companies of a significant portion of the sales revenue they would have otherwise enjoyed.

Which industries saw the largest increases in eCommerce, and how much potential sales revenue did they lose to Customer Journey Hijacking were they affected? To find out, let’s take a closer look at our data.

While most industries we work with saw increases in their online sales, health and beauty, apparel, and gifts and hobbies retailers stood out, seeing remarkable spikes in total online conversions compared to the 2019 Labor Day weekend. Here’s a full breakdown of the biggest year-over-year increases we saw:

When looking at online sales increases from this Labor Day weekend compared to the previous weekend period, apparel and fashion retailers saw the largest increases in online sales:

How did Customer Journey Hijacking impact these industries? As can be seen by these results, while several industries enjoyed major increases in eCommerce sales during this year’s Labor Day weekend, a sizable chunk of their traffic was exposed to unauthorized ad injections, which disrupt online shoppers with competitor offers and lure them to other sites. 

In most cases, the industries that enjoyed the biggest sales boosts also had the most significant increases in unauthorized ad injections. That correlation should come as no surprise, as we typically see that Customer Journey Hijacking affects roughly 20% of online shopping sessions.

But, for retailers that opted to automatically block unauthorized ad injections in real time, the picture looked very different. Because these injections disproportionately target the most active (and most promising) online shoppers, blocking them dramatically improves an eCommerce website’s chances of successfully selling to those consumers who are already more purchase-intent. 

The result? Over Labor Day weekend, our clients in the U.S. saw that their highest conversion rates were amongst these recovered shoppers, who would have been subjected to ad injections if not for our Customer Hijacking Prevention solution.

Looking forward

With major sales events coming up over the next few months, analyzing Labor Day sales numbers can help major retailers and eCommerce companies to prepare for Prime Day, Black Friday, Cyber Monday, and the rest of the holiday shopping season. 

While many industries have consistently seen higher online sales numbers since the start of the coronavirus outbreak than they did last year, it remains to be seen how the year’s peak sales events will look. Still, as Namogoo’s latest eBook explains, we can look to recent trends and major upcoming changes for some idea of what to expect. 

Although consumers have embraced eCommerce to a truly unprecedented extent this year, many have also become more price-sensitive in the face of widespread financial concerns. As a result, while online sales can enable retailers to boost their revenue, increasingly stiff competition can put new pressure on these companies to lower their prices.

More recently, it has been reported that Amazon will hold its 2020 Prime Day in October. Combined with the flexibility of eCommerce, this shift is likely to result in a holiday shopping season in which online sales are spread over a longer period. At the same time, it could give Amazon an even bigger leg up on the competition by enabling the eCommerce giant to effectively start its holiday sales earlier. This could create another layer of competition among online retailers. 

Additionally, while much about this year’s holiday shopping season is still unclear, it is safe to predict that Customer Journey Hijacking will be a force to be reckoned with. Because ad injections reduce online conversion rates by between 1.5% and 5%, large retailers that do not address this widespread problem are likely to miss out on millions of dollars in potential sales as a result of it.

The good news? For retailers looking to stop losing sales due to Customer Journey Hijacking, blocking ad injections in real time promises to boost conversion rates and total online sales revenue. With Namogoo’s Customer Hijacking Prevention technology temporarily available at no cost, now these retailers have a risk-free way to overcome the threat of ad injections heading into the year’s peak sales period. And, because our SaaS solution can be deployed rapidly with minimal resources required for setup or maintenance, it’s not too late for new clients to start preventing ad injections before Black Friday.

Ready to stop losing online sales to Customer Journey Hijacking? To start blocking ad injections in real time at no risk, request cost-free access to our Customer Hijacking Prevention solution.

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