When the final Airbnb price is established, the online buying business is facing more 52-week lows than the groupchat. Many prominent e-commerce shops are reporting reduced sales as the pandemic-fueled boom fades and shoppers return to real stores, warning that the industry is facing a brick-and-mortar wall.
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Last week, Amazon set the tone by posting a 3% dip in online sales in the first three months of the year and projecting only a 3% increase in sales for the current quarter. Its stock dropped the most in a single day since 2006.
Amazon served as the industry’s canary in the coal mine, signalling that customers were logging off. Since then, virtually every big online store that has reported earnings has showed hints of a clicking slowdown.
Wayfair’s stock plunged over 26% yesterday after the company announced that its active customer count had decreased 23.4 percent year over year.
Online sales at Bed Bath & Beyond have dropped 18 percent.
Following dismal forecasts for the current quarter, Etsy and eBay both saw their stock tumble by double digits yesterday.
In the last six months, at least five senior executives from Meta’s budding e-commerce sector have left.
Shopify’s stock dropped 15% on Thursday after the company reported earnings that were significantly lower than expected.
Zoom in: The Q1 e-commerce slump is being attributed to higher pricing, longer delivery times, and the fact that in-person businesses often smell better than the living room. If it’s any consolation to online retailers, all stockpiles are being slashed across the board.