Powering retail ecommerce for 2,200+ brands
Content text for a top bar
Q1 2026 INDUSTRY REPORT
The State of Ecommerce Report
Tighter media allocation, demand-aligned inventory, and profitable growth over scale.
Q1 2026 extended the 2025 pattern:
- Growth achieved at higher cost with thinner returns. OPS grew, but the quality of that growth warrants scrutiny. ASP fell, deepening last year's pricing pressure, driven by structural mix shift rather than promotions, meaning discounting cannot reverse the trend.
- Conversion rose 4% YoY despite declining traffic, signaling that demand exists but shoppers are more deliberate and targeted, gravitating toward lower-priced items rather than browsing broadly.
This Q1 2026 State of Ecommerce report brings total industry and category breakdowns that reflect ecommerce retail and insights that set the ground for a strong performance in 2026.
Download the full report
Q1 2026 INDUSTRY REPORT
The State of Ecommerce Report
Tighter media allocation, demand-aligned inventory, and profitable growth over scale.
Q1 2026 extended the 2025 pattern:
- Growth achieved at higher cost with thinner returns. OPS grew, but the quality of that growth warrants scrutiny. ASP fell, deepening last year's pricing pressure, driven by structural mix shift rather than promotions, meaning discounting cannot reverse the trend.
- Conversion rose 4% YoY despite declining traffic, signaling that demand exists but shoppers are more deliberate and targeted, gravitating toward lower-priced items rather than browsing broadly.
This Q1 2026 State of Ecommerce report brings total industry and category breakdowns that reflect ecommerce retail and insights that set the ground for a strong performance in 2026.
Download the full report
Used by the most loved brands in the world
Key takeaways
Revenue is growing on volume, not value:
Brands are broadly trading revenue quality for volume, compressing gross margins from 20% to 18% across the portfolio.
Conversion efficiency is masking a shrinking top of funnel:
Overall conversion jumped to 28.1% in March even as glance views declined ~5% YoY — fewer browsers but more buyers.
Supply chain execution improved materially, but unevenly:
The overall PO fill rate rose ~7pp YoY to ~86%, and fulfilled units grew 15.4% in March — a meaningful operational step forward.
Ad spend is ccaling faster than it is earning:
Early-quarter spend showed the weakest efficiency, with returns back-loaded toward March.
Margin outcomes are increasingly a function of assortment discipline:
Categories that reduced discounts and shifted toward higher-ASP items saw margins expand dramatically, while those that chased volume through lower prices saw margins collapse.
Stockout losses are concentrated where growth is fastest:
Eespite on-hand inventory running well above prior year in several high-growth categories, OOS losses widened.
