Naughty or Nice? — Q3 2022 E-commerce Review — Part 2

Kevin LaBuz
6 min readDec 4, 2022

Like e-commerce companies, consumers are retrenching. They’re becoming more discerning, more value-conscious, and thriftier. Below, a look at recent shifts in consumer behavior and how the e-commerce industry is responding.

Stocking Stuffers

Over the past two quarters e-commerce companies took out the hatchet as online spending normalized from pandemic peaks. Consumers are cutting back too.

Today’s economic environment is as confusing as a stocking with a lump of coal next to a Rolex. It’s sending lots of mixed signals. Much to the Fed’s chagrin, wage growth is strong, unemployment is near record lows, and there are over 1.5 job openings for every unemployed person looking for work. Though cracks are emerging, especially in tech — cue the world’s smallest violin — the US labor market is on solid footing. Despite this, folks are in a glum mood, with consumer confidence at generational lows.

Source: US unemployment rate from the Labor Department via The Wall Street Journal, November Employment Report Shows U.S. Economy Added 263,000 Jobs, December 2, 2022. University of Michigan Consumer Sentiment via University of Michigan, University of Michigan: Consumer Sentiment [UMCSENT], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/UMCSENT, December 2, 2022.

Helped by stimulus checks, Americans are sitting on over $1.5 trillion in savings accumulated during the pandemic. However, this buffer is evaporating as consumers have more options for where to spend — restaurants, travel, karaoke bars — and inflation makes everything more expensive. In October, Americans saved just 2.3% of their post-tax earnings, the lowest level since July…

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Kevin LaBuz

Head of IR & Corporate Development at 1stDibs. Previously finance at Etsy, Indeed, and internet equity research at Deutsche Bank. Find me on Twitter @kjlabuz.