INDUSTRY REPORT

Toys market resilience in Q2 2025

Q2 2025 in the Toys & Games category revealed surprising resilience despite challenging economic conditions. While glance views declined significantly by 17.7% year-over-year, conversion rates improved dramatically, resulting in a 7.6% increase in ordered product sales. This demonstrates that brands win on the digital shelf where it matters most: turning fewer shoppers into more buyers.

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Key takeaways

  • Traffic declined but sales grew: Despite a 17.7% YoY drop in glance views, sales increased 7.6%, demonstrating strong conversion optimization
  • Out-of-stock impact surged: Revenue loss due to OOS increased 56.7% YoY, creating a critical focus area
  • Pricing pressure moderated: Average selling prices declined just 0.68% as discounting continued to fall
  • Ad effectiveness improved: ROAS increased 19.8% while spend grew only 1.5%, indicating smarter advertising investments
  • Inventory planning intensified: Filled units jumped 51.3% YoY in preparation for Prime Day, highlighting strategic inventory positioning
  • OPS vs. unit margin %: Q2 Ordered Product Sales increased 7.6%year over year as Unit Margins fluctuate