Online sales will rise 8.5% in 2020

The major e-commerce numbers in 2020

FEVAD, the e-commerce and distance selling federation (FEVAD), has published its 2020 e-commerce report in France. This sector now represents 13.4% of retail trade (compared to 9.8% in 2019).

Here are the key numbers to keep in mind:

  • 112 billion euros in online sales (products and services), up 8.5% year-on-year,
  • +32% Internet product sales,
  • -10% in sales of online services (-47% for the tourism sector),
  • 17,400 additional e-commerce sites by 2020,
  • 1.8 billion transactions (+5.8% compared to 2019),
  • 2 euros is the increase in the standard basket, which costs 61 euros.

Product sales are driving e-commerce growth in 2020

At 112 billion euros, e-commerce turnover in France recorded an increase of 8.5% in one year, compared to 11.6% in 2019. In detail, it is sales of Internet products that allow the sector to continue its good momentum (+ 32%), while the purchase of services dropped by 10%, mainly due to the sharp decline in travel and leisure activities during the pandemic.

In 2020, 17,400 additional sites were created, compared to last year. Combined with all products and services, all e-commerce sites have accrued 1.84 billion transactions (+5.8%) in the past 12 months. Proof that the health crisis has had a huge impact on online shopping, the average basket is now at 61 euros, while it was 59 euros in 2019.

The acceleration of the sale of products on the Internet

While online sales remained at a high level throughout 2020, they experienced two periods of historic peak activity during the two lockouts. Their acceleration was noticeably observed in the 4th quarter with the closure of stores and so-called “non-essential” departments. Despite their reopening at the end of November, the strong increase in Internet sales also continued in December. In total, sales of products and services generated a turnover of 25 billion euros during Christmas 2020 (November-December), an increase of 23% compared to 2019.

Store brands limit wear and tear by selling products online

FEVAD also noted that the sale of online products across store brands has experienced strong growth in the past year, with an overall increase of 53%, reaching peaks of +100% during the two incarcerations. . The reason: the acceleration of home deliveries, the national implementation of click & collect as well as the generalization of drive practice.

Internet sales have allowed many closed physical businesses to maintain activity. The rise of e-commerce is also affecting online sales made by marketplaces that have provided an outlet for many VSE/SMEs and limiting the decline in their sales, the federation analyzed.

Beauty-Health is a hit, travel and tourism at the very least

The year 2020 is not experienced in the same way depending on the sector. FEVAD said Beauty & Health and consumer products recorded the strongest growth:

  • +52% for Beauty-Health,
  • +42% for consumer products,
  • +34% for technical products,
  • +24% for furniture and decorations.

Conversely, due to confinement and travel restrictions, travel and tourism sites have suffered the severe impact of the health crisis.

Despite a slight improvement in the situation during the summer, new preventive measures taken in the autumn further weakened the sector, which dropped this year by -47% compared to 2019, FEVAD added.

Marketplace sales increased 27%

Marketplace sales also rose sharply: +27% in 2020, i.e., twice as fast as in 2019. They represent a stable business volume at 15% of the iCE 100 panel volume . (e-commerce index).

Sales made on behalf of third parties (in market places) have allowed many VSEs/SMEs to limit the decline in their activity.

On the mobile side, the iCM index, which combines both product sales and travel, dropped in 2020, marked by a decline in purchases related to transportation, travel and leisure, such as show ticketing, which are often topics a lot of orders on this type of device. However, these mobile sales will increase by 5% in 2020, compared to 18% in 2019.

Source: FEVAD

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