COVID-19 Changes Ecommerce for Fastenal, Ipsy Grows Subscription Memberships 60% and Sales Spike 146% on Etsy
COVID-19 Changes Ecommerce for Fastenal
The second quarter was another solid one for digital growth for Fastenal, a wholesale distributor of industrial and construction supplies. However, growth in digital sales, which Fastenal defines as web sales occurring online and through its internet-connected vending machines, wasn’t as robust as in Q1 because of COVID. In Q2, digital sales for Fastenal grew year over year by 13.5%. In comparison, total sales increased 10.3% to $1.509 billion from $1.368 billion in Q2 of 2019. For the six months ended June 30, total sales grew year over year by 7.6% to $2.876 billion from $2.677 billion. Net earnings for Q2 was $238.9 million compared with $204.6 million Q2 of 2019. In Q1, ecommerce sales grew 27%, bringing sales on Fastenal.com to a record 10% of total sales in March. Other internet-based sales, such as vending machines, brought ecommerce to 35% of total sales.
What stood out to us? This is nuts.
Ipsy Grows Subscription Memberships 60% During COVID
While customers stay home due to COVID-19 subscription cosmetics retailer Ipsy found opportunities to connect with its current customers and acquire new ones. “Getting a Glam Bag in the mail gave [our members] something to look forward to, something that makes them feel good,” says Karishma Baijal, vice president of growth at Ipsy. “And they need that now, more than ever.” Ipsy’s new customers grew 60% month over month since mid-March to the end of July and has generated more than triple the revenue in the time period compared with the 2.5 months pre COVID-19 ecommerce sales. Ipsy credits its growth in members and revenue to the new ways it reached its customers online, such as a virtual beauty event and allowing shoppers to purchase single products outside of a subscription.
What stood out to us? Glam Bag. If only Ziggy Stardust were still around, this trend may have been bigger.
Sales Spike 146% on Etsy in Q2
Gross merchandise sales (GMS), or total value of goods sold on Etsy.com and Reverb.com grew 145.6% to $2.69 billion in the second quarter which ended June 30. Isolating sales on Etsy.com, the marketplace grew 125% in Q2 year over year. For the first 6 months of 2020, Etsy’s sales, including Reverb, reached $4.04 billion, up 90.8% from $2.12 billion during the same period a year ago. Looking only at Etsy.com, sales grew 71.4% year over year. There was 3.14 million active sellers on Etsy in Q2, up 34.6% from 2.33 million a year ago. The number of buyers grew 41.0% year over year to 60.27 million buyers. Etsy acquired approximately 12 million new buyers in Q2 and reactivated 7.2 million buyers.
What stood out to us? Etsy.com and Reverb.com have a unique opportunity to sell glam bags to the cross-over audience glam rock musicians.
In the headlines
- Preparing: Amazon preps for first Prime Day of pandemic in India.
- Baking: Foxtrot has ecommerce baked into its business model.
- Dashing: DoorDash launches fulfillment centers in 8 cities to sell essentials.
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