Over the past few decades, we have seen a transformation in the way we shop and utilize services. Traditional commerce, based on physical points of sale, is increasingly being replaced by online trade. The digital revolution is not bypassing any sector and more and more companies are starting to realize the potential of online sales for their services.
Facts in Numbers
The service industry, which once mainly relied on direct interactions between providers and clients, is now undergoing a transformation process in which the Internet plays a key role. This clear trend can be seen when comparing year-on-year sales results. Admitad, a global affiliate marketing network, analyzed over 200,000 Polish user orders in the online services segment.
Comparing the periods from January to August in 2022 and 2023 reveals a significant increase in online service trading indicators. The number of orders increased by an impressive 41%, representing a significant step forward in the development of this segment. That’s not the end of the good news, the GMV (Gross Merchandise Value) of orders increased by 105%, clearly indicating the dynamic development phase this industry entered this year.
However, not only companies benefit from the growth of online service trading. Publishers’ earnings have also increased, rising by 16%. This confirms that more and more companies are focusing on performance marketing, which attracts more customers and generates greater returns on investment. The number of active publishers has also increased by 11%, which means greater competition in this industry, but also more choice for consumers.
One of the key indicators that is a good sign for both the company and consumers is the average order value (AOV). During the analyzed period, the AOV increased from 75 PLN to 110 PLN, which means that customers are making larger purchases in the online services area, perhaps encouraged by attractive promotions and offers.
Which Product and Service Categories have Seen the Greatest Increases?
Fitness, where the number of orders has increased by 30%. This is evidence of growing awareness of a healthy lifestyle and the popularity of services related to physical activity.
Movies and music, which saw more than double the number of orders. Increased availability of online content means consumers are using streaming services more frequently.
Work and freelancing, which saw more than double the number of orders. This reflects the growing popularity of remote work, which is being chosen by more and more people.
Cars (car-sharing, rental, taxi), where the number of orders increased more than three times. Mobility and the availability of online transport services are becoming more appealing to customers.
Event tickets and entertainment, which saw a 98% increase. This indicates that after a period of pandemic-related restrictions, people are longing for cultural events and live entertainment again.
Solutions Driving Interest in Online Services
Moving service sales online has many benefits. For entrepreneurs, it means access to the global market, lower operational costs, and greater flexibility. For customers, the main advantages are greater availability of services and the ability to compare offers and choose those that best meet their needs.
Online platforms: The creation of online platforms that allow service providers to promote themselves and acquire clients has become the norm. Many platforms now make it possible to find clients and earn income in the virtual space.
Consultations and online training: Business consultations, coaching sessions, and even dance or music lessons are now available online. This means that experts and instructors can reach clients all over the world, without the need for physical presence.
E-learning: Online education is developing at an impressive pace. Online courses, webinars, and e-learning platforms allow for learning and skill development at any place and time.
E-health: Telemedicine is another example of how service sales are moving online. Patients can consult doctors online, receive prescriptions, and track their health using mobile apps.
Streaming services: The entertainment industry, such as movies, music, and games, is now operating on subscription models and streaming services that deliver content online.
The COVID-19 pandemic significantly accelerated the discussed trend. Lockdowns and restrictions have led many consumers to start using online purchases as the main method of shopping, including service purchases. Companies that had not previously invested in an online presence began to adapt quickly to the new reality.
The shift of service trade to the network is not only the result of technological progress, but also changes in customer expectations and behaviors. Online commerce offers convenience, availability, and competitive prices, which translates into its growing popularity. Companies that can adapt to this trend and offer attractive online solutions are better prepared to meet the demands of the modern customer.
Author:Â Anna Datsiuk, Head of Admitad Poland
