Small Online Retailers Grow More than Amazon in the Holiday Season [Research]

Amazon is the world’s largest online retailer, with over $100 billion in annual revenues. It’s also a popular destination for holiday sales around the globe. In 2015, for example, Amazon’s sales were 43% higher in October, November and December than in the previous 3 months.

This growth during Q4 is impressive, and it’s evidence of the importance of holiday sales for their business. But our data shows that the Christmas period has an even bigger impact on small and medium online stores.

At Compass we analyzed over $13 B+ USD in Gross Merchandise Volume, from thousands of small, medium and large client online stores. According to our findings (see graph below), small online retailers grew by 55% in sales from Q3 to Q4 in 2015.

That’s 28% higher than Amazon’s growth rate:

Ecommerce Holiday Sales

This confirms a feeling we already had from talking to our customers. For many businesses, especially those in their first year of operations, the holiday season (including Black Friday, Cyber Monday and Christmas) is a golden opportunity to gain traction.

Most importantly, our research shows that the holiday season is also opportunity to convert email subscribers into customers and, hopefully, build a loyal client base that will help them grow in the coming year. That’s because traffic coming from emails tends to grow more than 400% during this period.

Forecast your Holiday Sales growth rate for this season

Of course, your growth rate during the holiday season will depend on the size of your business, industry and previous sales numbers (Make sure to be prepared with ecommerce Fraud Protection for the Holidays).

At Compass, we take all these factors in consideration to forecast your possible future growth. To forecast your growth for this holiday season and the coming year, all you need to do is sign up. It’s free and it takes 2 minutes.