Avangate Reports New Global Digital Commerce Trends
Avangate, the global eCommerce and subscription billing platform that increased revenue for software, SaaS and digital solutions, today released its 2016 yearly benchmark report on Digital Commerce Trends in Software and Online Services Sales, revealing how consumers of software, SaaS, and online services are in the know, placing security and convenience at the fore of their priorities.
The Digital Commerce Benchmark tracks the global consumption of software and digital/online services to identify regions with the fastest growth or greatest contraction, most popular products, preferred payment methods and providers actionable insight for software companies and digital services providers to help direct their efforts towards more rapid revenue growth.
Avangate was good enough to disclose some of the key trends revealed in the data:
- Safety First- Security and privacy concerns remain top of mind, reflected by the popularity of these purchases. Seven out of 10 of the leading countries, including the US, UK, Canada, France and Italy, show security and privacy technologies, such as classic endpoint security and identity protection, as most popular.
- Rising Sales- Consumers and businesses continue to buy security & privacy and utilities/maintenance software. These categories are on an upward trend compared to the previous year, with a 10% and 16% increase in sales respectively.
- Growers vs. Slowers- The U.S. remains the undisputed leader in software sales followed by the UK, but one of the largest market growth is reported in Argentina (+42%), followed by the Czech Republic (+37%) who are both experiencing economic upturns. The largest declines were reported in Columbia (-17%), despite its timid growing economy, and Malaysia, which has experienced political and economic turmoil (-7%).
- Subscribe Me Up- Worldwide, the average order value (AOV) is actually decreasing by six percent (6%) as consumers and businesses migrate to subscription-based models. Nearly three-quarters (72%) of sales volume in the period Aug 2015 to July 2016 are subscription-based compared to 63% in the previous 12 months, Aug 2014 to July 2015.
“Digital products and services continue to grow to support the continuum of demand – as evidenced by our benchmark data. It is clear that businesses need to brace themselves for rapid shifts caused by economic factors or buying trends at a global, market or country level. These changes – such as the growth in subscription models and alternative payments – require the capability to be nimble,” said Erich Litch, Avangate’s Chief Revenue Officer. “The tools and insights we provide help our clients quickly streamline and optimize ecommerce processes and make it easy for their end-customers to avoid a disruption in service; all factors that play heavily into a brands’ success.”