INDUSTRY REPORT
The state of retail ecommerce | Q3 2024
Q3 often marks a critical period for ecommerce brands, characterized by steady growth from Prime Day, back-to-school and early holiday shopping. Despite margin pressures from rising inventory and advertising costs, sales growth in Q3 2024 remained strong, supported by increased ad spend to boost product visibility.
While ROAS saw declines, operational efficiency saw improvements, with optimal fill rates and generally well-managed supply chains. In key categories like Health & Personal Care, Grocery and Pet Products, pricing stability reflects consumer demand for cost-effective options.
3 key takeaways
- Cross-category sales growth: Brands experienced strong YoY growth across categories, largely driven by seasonal demand and tentpole events like Prime Day.
- Rising inventory costs: Increasing Cost of Goods Sold (COGS) is squeezing margins, even with stable pricing.
- Declining advertising impact: Increased ad spending boosted visibility, but ROAS declined with steady CPCs—indicating mix shift to lower ASP items.