SAN JOSE, Calif. — The heart of the back-to-school shopping season saw consumers shift their online spending to lower-cost items and alternatives, signaling that economic stressors might finally be translating into significant consumer caution, according to ecommerce data released by Signifyd today. “What we saw in July was not surprising given recent macroeconomic trends,” Signifyd CEO Raj Ramanand said.
“Online retail remains healthy, but clearly economic uncertainty and the decline in surplus savings are weighing on consumers. We’ve entered an era during which merchants need to focus on profitable growth rather than growth at any cost. This is the time for brands to develop lasting customer value by doubling down on the long-term relationships they build with the customers they serve.
” Retailers that focus on the long game will have an opportunity to make up for smaller cart sizes by encouraging customers to return to them over the long haul. “The decline in average order value is somewhat worrisome,” said Signifyd Senior Data Analyst Phelim Killough. “Add to that the fact that cart size — or the number of items per order — was down 9% and it’s a less-than-glowing report.
Higher overall spending, lower average order value and smaller cart sizes tell the story of consumers who are trading down and finding cheaper options for the things they need.” A look at how consumers were spending in July underscores Killough’s point. Overall, the number of e.