E-retailers have their eyes glued to inflation figures. This necessarily has an effect on their sales, even if (or thanks to inflation) the year 2023 resulted in growth in online sales of 10.5% to 159.9 billion euros ( source Fevad).
However, growth does not benefit everyone and certain markets suffer more due to choices made by consumers. So what about the morale of sellers in France? Contrasted, respond a hundred leaders in the sector.
French e-retailers less optimistic than the rest of Europe
This is highlighted by the results of the Fevad survey on the morale of French e-retailers. 34% say they are less optimistic. Pessimism, presented as a French tradition, is therefore in the minority. It nevertheless gained 5 points over one year.
The most optimistic camp loses 6 points and thus brings together 33% of respondents. At European level, they are 42%. French specificity is therefore not totally contradicted. However, the French are more confident about the financial outlook.
53% estimate that their financial performance (net margin) will grow in 2024, compared to 32% of European e-retailers. Margins therefore preserved, but in a market where 40% anticipate a decline (+7 points compared to 2023 and +19 compared to 2022).
Fall in consumption and delivery costs are worrying
Trust has its limits. Moreover, “76% expect an increase in e-commerce site closures this year”, when they were 60% in 2023. Several factors are put forward to justify these fears.
81% of e-retailers put the drop in household consumption first. In addition, 71% fear an increase in transport and delivery costs. Inflation is experienced as a leaden screed.
75% of French sellers are worried about its impact. Thus, 84% fear a shift in purchases towards sites and brands selling cheaper products, i.e. hyper-discounts, clearance, second hand, etc.
In this context, 53% have canceled or postponed certain investments. A preferred solution to the reduction in margins (50% against 53% in 2023). They fear inflation, but 67% of respondents also contribute to it, in some way.
Fewer price increases and investments under pressure
How ? By planning to increase their prices in 2024. However, this practice is in sharp decline. 83% predicted this in 2023. The grip of inflation is loosening when the pressure on investments increases. But not for everyone.
“Until 2022, IT dominated investment priorities before being overtaken by CSR in 2023 then by marketing and advertising in 2024. 47% of managers declare that they will increase their investments in this sector ”, notes Fevad.
Marketing spending is increasing, a sign of increased competitive pressure. They also trigger an increase in acquisition and loyalty costs for e-retailers. CSR (33%) and IT (40%) are therefore declining in investments.
But for e-commerce bosses, certainty is nevertheless essential in the technological field. 97% consider AI “to be a particularly promising innovation and plan to develop it in their activity in the next 3 years.”