Mollie, one of the fastest growing financial services providers in Europe, has revealed insights into online payment trends for small and medium-sized retailers on Black Friday and Cyber Week 2022.
Sales performance was much stronger than expected, Buy Now, Pay Later and local payment methods are on the rise and average transaction values have increased.
Sales performance: Black Friday is now a week long event
Despite pessimism running into the peak shopping season, small and medium-sized merchants across Europe enjoyed a sales volume increase of 14.5% on top of 2021’s record-breaking Black Friday. Small and medium-sized ecommerce retailers also experienced a 13.5% increase in sales volume across the whole week compared to the same period last year.
Payment methods: BNPL and local payment method use rise
Overall Buy Now, Pay Later volumes increased by 57%, accounting for 6% of total Black Friday spend. Merchants also saw the continued increase in importance of local payment methods amongst European shoppers. Dutch consumers, for example, used iDEAL for 74% of their Black Friday spend (up from 72% in 2021) and Belgians used Bancontact for 55% of their spend (up from 54% in 2021).
Peak purchasing times
Black Friday coincided with important football games for both the Dutch and English national teams. However, while there was a noticeable dip in ecommerce activity amongst Dutch shoppers at the time of the game, English ecommerce activity actually peaked during the match. Prime time for Black Friday purchases in the Netherlands and Belgium was 10:00-11:00, 11:00-12:00 in Germany, 18:00-19:00 in France and 19:00-20:00 in the UK.
Average transaction values
In the retail segment, Black Friday average transaction values increased by 10.2% compared to last year. Across four of the five main areas of retail, average values also increased. Home electronics transaction values jumped by 37%, sporting goods by 19%, home furnishings and apparel increased slightly (6% and 2% respectively). The average transaction value for beauty products was down 7% compared to 2021.
“The macro economic situation in Europe created a decline in ecommerce transaction volumes earlier this year. But during the days leading up to Black Friday it became clear that spend levels were significantly higher than we and the market had anticipated - especially in home electronics. A 14.5% increase in sales volume on Black Friday, and 13.5% over the whole week is phenomenal and something retailers should be proud of,” said Ken Serdons, CCO, Mollie. “Black Friday is a critical guide for the coming Christmas shopping period. While we can perhaps be slightly more optimistic than we had been, it’s clear that some sectors - in particular clothing and beauty - will struggle. Those small and medium-sized merchants that want to grow over the next year will have to fight for every sale, perfect their checkout experience and make sure they can meet the growing expectations of consumers for local payment methods, fast delivery and free returns.”