News • 19.05.2020

Buy now, pay later options drive increase in e-commerce

New data from Klarna about sales of travel services and event tickets

Woman holding a cup of capuccino with an airplane drawn in...
Source: Bildagentur PantherMedia / KostyaKlimenko

Klarna released new data from its app in the US, indicating that travel services and event ticket sales are beginning to recover. While still significantly lower compared to an average pre-COVID week, the Airlines category saw a 26 percent week-over-week rise in average daily transactions, while one event ticket seller saw Klarna-enabled transactions increase by a whopping 330 percent week over week in the week ended May 9. Average daily sales volumes for household appliances, excluding sales made at big-box retailers, also increased significantly week over week, rising by 45 percent, while women’s accessories sales made through the Klarna app rose 12 percent.

“Our weekly data point to consumers’ desire to get back to the activities that enrich their lives, such as traveling and attending live events, as soon as possible,” said David Sykes, Head of US at Klarna. “At the same time, consumers still seem to be focusing on their home life, as data from the Klarna app revealed that sales of vacuums, stand mixers and other home appliances rose by 45 percent week over week. That may indicate that people are purchasing flights and event tickets for the future, but for the time being, are continuing to look for items that make cooking and housekeeping easier and more enjoyable.”

Expenses of the different generations

Aside from analyzing average daily volumes to identify increases and decreases in category transactions week to week, Klarna has been analyzing share of wallet — or how its app users are dividing their spending among different shopping categories — to identify what product categories Gen Z, millennial and Gen X audiences are shopping for most often using Klarna’s flexible payment options, and how their e-commerce spending is shifting throughout the pandemic.

Klarna’s most recent demographic data show that from May 3 through May 9, Gen Z and millennial Klarna app users increased their share of spending on apparel, footwear and accessories for the fourth week in a row, while Gen Xers increased their share of spending on the category by nearly 10 percent. Klarna app enabled sales at stores that sell women’s accessories grew by 12 percent week over week in the week ended May 9, suggesting that women are looking to freshen their wardrobes with seasonal accessories as more states and municipalities lift stay-at-home orders.

Klarna, which serves 7 million consumers in the US and 85 million consumers globally, will continue to analyze transaction data weekly to identify how the coronavirus outbreak is affecting e-commerce and consumer shopping behavior.

Other Key Findings

  • Week over week in the week ended May 9, the apparel, footwear and accessories category’s share of all purchase transactions made through the Klarna app increased by nearly 2 percent among Gen Zers, by 4 percent among millennials and by nearly 10 percent among Gen Xers.
  • Gen Xers continued their eight-week trend of shifting share of wallet toward home and garden items, with share up nearly 6 percent, suggesting they are continuing to focus on DIY projects, items that make cooking and cleaning easier, and products to make their homes more comfortable and livable. Gen Zers’ share of spending on the category rose by nearly 12 percent week over week, while millennials’ share fell by nearly 4 percent.
  • Gen Zers and millennials increased their share of spending on leisure, sport and hobby items week over week in the week ended May 9, while Gen Xers’ share of spending on the category fell slightly.
  • For the third week in a row, millennials and Gen Xers both increased their share of spending on electronics, with millennials’ share up 7 percent and Gen Xers’ share up 10 percent. Gen Zers’ share of spending on the category was down nearly 5 percent in the week ended May 9.
  • All three demographic groups significantly decreased their share of spending on marketplaces (which include sites such as Amazon.com, Walmart.com, Target.com and eBay.com), indicating that they are looking to other retail formats to fill their shopping needs. Both Gen Zers’ and Gen Xers’ share of spending on marketplaces decreased by nearly 8 percent, while millennials’ share fell nearly 5 percent week over week.
Source: Klarna

related articles:

popular articles:

Thumbnail-Photo: Social commerce opportunities on TikTok for merchants...
31.10.2020   #online trading #social media

Social commerce opportunities on TikTok for merchants

Partnership between Shopify and TikTok

On TikTok, businesses of all sizes are empowered to grow their brands through creative content and storytelling. Since we launched the TikTok For Business platform, we've seen brands around the world make real connections with our users by ...

Thumbnail-Photo: 3 steps to personalisation in e-commerce
04.08.2020   #online trading #e-commerce

3 steps to personalisation in e-commerce

How retailers can build trust and foster customer loyalty

The COVID-19 pandemic has left a visible mark on the retail sector, and companies have had to find new ways to reach consumers effectively in a very short time. Many companies that had previously focused on stationary retail have expanded their ...

Thumbnail-Photo: Get your business ready for E-commerce Berlin Expo 2021!...
08.10.2020   #e-commerce #digital marketing

Get your business ready for E-commerce Berlin Expo 2021!

Meeting point for all major decision-makers in the e-commerce sector

E-commerce Berlin Expo is the biggest pure-play e-commerce event in the (tech) capital city of Germany. Over 9,000 visitors and 200 exhibitors are expected every year. E-commerce Expo views itself as a community and a meeting point for all ...

Thumbnail-Photo: 4 tips on how to handle customer complaints
13.08.2020   #consulting #customer satisfaction

4 tips on how to handle customer complaints

How you can effectively respond to negative reviews and use them to be a benefit to your company

Most retailers don’t like customer complaints. Plus, they also mean extra work. Yet ignoring complaints is not a great long-term strategy because any bad customer experience can haunt your brand if it becomes public. That’s why retailers ...

Thumbnail-Photo: Boom time for bicycle retailers
28.09.2020   #online trading #customer satisfaction

Boom time for bicycle retailers

What is the recipe for success? iXtenso visited three bicycle retailers

What does it take to be successful during these growth times? iXtenso looks at three very different retailers – from online, to offline and all that lies between. Find out more in our exclusive video! ...

Thumbnail-Photo: Face coverings to be mandatory in shops from 24th July...
23.07.2020   #security #brick and mortar retail

Face coverings to be mandatory in shops from 24th July

Guidance and information for retailers

The Government announced that wearing a face covering will be mandatory in shops from Friday 24th July. Penalties for not wearing a face covering will be enforced by the police, who can issue fines of up to £100 (reduced to £50 if paid ...

Thumbnail-Photo: Spotlight on ... city centre
15.09.2020  

Spotlight on ... city centre

Learn more about the challenges that city centres are currently facing in our focus topic

What attracts customers to city centres these days? You can find possible answers to all aspects of city marketing with us. ...

Thumbnail-Photo: Textile recycling system ’Looop’ by H&M
14.10.2020   #sustainability #fashion

Textile recycling system ’Looop’ by H&M

Transforming unwanted garments into new fashion favourites

H&M offers customers in Sweden the possibility to transform unwanted garments into new fashion with the help from their new garment-to-garment recycling system ‘Looop’. This machine visualizes to customers that old textiles hold a ...

Thumbnail-Photo: Better customer care on Twitter leads to increase in customer...
18.09.2020   #customer satisfaction #customer relationship management

Better customer care on Twitter leads to increase in customer satisfaction

Responses to queries on social media impact service quality perception

Social media has forever changed our society and how people do business. A 2013 report by J.D. Power found nearly two-thirds of customers have used a company's social media site to connect with customer service. New research in the INFORMS ...

Thumbnail-Photo: iXtenso newsletter – Never miss a story!
01.08.2020  

iXtenso newsletter – Never miss a story!

Always the latest retail news delivered directly to your inbox – every two weeks