It’s that time of year where we review what’s happened on Felt in the past 12 months and share some behind-the-scenes insights. This year it’s a look at Felt in the post-Covid period, from traffic and sales, to demographics and devices. Based on what we’ve observed, we’ve noted some trends and come up with some tips for you to try out in 2023!

Felt in the post-Covid period

After two fairly unpredictable years, the one thing it was safe to assume in 2022 was that things were not going to get easier.

Inflation, increasing interest rates, lower discretionary income for many people, and ongoing Covid restrictions over this 12 month period all had an impact on online shopping. NZ Post’s 2022 eCommerce Review reported that in the final quarter of 2022, online spending in New Zealand was down 22% on the same period in 2021, with the number of Kiwis shopping online dropping by 13%.

Consistent with those statistics for New Zealand in general, we’ve seen traffic and sales decline. It’s been a tough time, and if you saw a drop in sales in 2022, you are not alone.

Sales and spending, 2021 to 2022

• Buyers spend 5.6% more in an average transaction Felt database
• Average sold item price has increased by 7.3% Felt database
• Conversion rate* has decreased by 16% Google Analytics
• Average time to sell has increased by 8 days Felt database

There’s no avoiding the fact that sales were down in 2022, consistent with online shopping statistics in general for this period. There were fewer visitors, and they were more hesitant to make a purchase when visiting Felt. But it’s not all bad news. Customers spent more when they did make a purchase – 5.6% more in an average transaction – and the average price of a sold item increased by 7.3%.

TIP Review the prices of your items regularly, especially with the changing costs of many supplies and services. It’s important to ensure you’re covering your costs and overheads, and making a healthy profit too. Read more about pricing »

During 2020 and 2021, we saw the average time to sell decrease by 8 days – in 2022 this has increased by 8 days, returning exactly to our 2019 average. An interesting thing to note here is that during 2020 and 2021 we saw huge demand for face masks. The large number of listings created to meet this demand sold much faster than average, which may account, at least in part, for this change.

* Conversion rate is a measure of how many visits to Felt result in a purchase.

Sales (by revenue to Felt sellers) in 2022

Sales on Felt in 2022 followed a pattern we expect of consistent sales through the year with periodic spikes, and a significant increase in sales in the lead up to Christmas. Many of the spikes are caused by our major promotional emails (marked as yellow points on the graph), which go out monthly and around key dates, such as Mother’s Day. In general, these emails generate nearly 10% of all sales on Felt.

You can see that the March promotional email was particularly well-received last year, with shoppers stocking up on cosy slippers and ceramic mugs to prepare for the cooler months. You can also see the usual jump to higher sales levels at the start of November with the launch of the Christmas Gift Guide and Christmas marketing emails.

While in the previous year we saw increased sales in early October as customers shopped earlier due to uncertainty around Covid restrictions and shipping delays, the 2022 Christmas curve shows a return to the pre-Covid pattern. Sales started building up in late October, and remained high throughout November and December, before dropping off in the final few days before Christmas.

TIP Buyers often return to Felt at various times throughout the year to track down something they’ve previously spotted for a birthday or other occasion. Listing consistently throughout the year to maintain your presence on Felt not only means we can weave your beautiful products into our ongoing promotions, but keeps you visible so buyers can find you again easily when they need to.

An overview of Felt visitors in 2022

Kiwis continued to do a great job of keeping it local and supporting their communities in 2022. 85.15% of all visitors to Felt in 2022 were in New Zealand, and they accounted for 95% of sales (Google Analytics). Not surprisingly, given the global situation, there was very little change in the numbers of international visitors and shoppers on Felt in 2022. There were, however, some interesting shifts in the demographics relating to age group and gender.

Distribution of visitors to Felt by age group and gender, 2022

There were two changes of note in Felt’s visitor demographics in 2022. Firstly, during the Covid years, 2020 and 2021, we saw the number of visitors in the 65+ bracket increase significantly to represent nearly 25% of Felt’s total traffic. In 2022 that age group has returned to pre-Covid levels, and traffic is once again fairly evenly distributed across all the age brackets over 25.

The second notable change was a marked increase in the number of men visiting Felt, with male visitors now accounting for a quarter of Felt’s traffic, up from 17.7% in 2021. We’re excited to see this indication that Felt’s audience is becoming more diverse and representative of both the maker community and the people who support local makers and businesses.

TIP When brainstorming new product ideas, think about things that match your skill set but appeal to a different audience. Consider how different materials, colours, shapes, or styles might make your existing products more appealing to different customers.

The more diversity there is in our community, the more opportunities there are for different makers and creatives to find their niche and their supporters. Your efforts to spread the word about Felt are a big part of continuing to grow and diversify Felt. When you bring customers to Felt, everyone reaps the benefits, so thank you for helping us to achieve this, and keep up the excellent mahi!

Platform used (% of sessions on a device), 2022

The Felt solar system: Products and categories

Categories have remained fairly stable this year, with Jewellery & Fashion still Felt’s largest top level category, followed by Home & Living as the second largest, then Arts & Culture and Baby & Child with fairly similar numbers between them.

All of these categories are well-populated and this is reflected in the distribution of sales, but there’s always space for original new products, quality craftsmanship, and unique spins on the traditional.

TIP When listing an item, think carefully about where customers are likely to look for it. Open another tab to check out the category you’re planning to list in – does your product fit there? Is it logical? If your items fit in more than one place, list them in multiple categories.

What are visitors searching for?

Earrings were predictably the most searched item on Felt, but crochet was a new arrival amongst the top search terms. Interest in ceramics continued to grow over the last 12 months, and we’ve also seen increased interest in glass – particularly stained glass – perhaps a new trend reflective of the time we’ve all spent looking out windows whilst waiting for isolation periods to end!

TIP Customers are more likely to buy when search results are relevant to their query. Think about which search terms a customer might use to find your product, and make sure your keywords and the language you use in your descriptions are appropriate and relevant. Read more about keywords »

So that’s a snapshot of Felt at the close of 2022! If you’re looking for inspiration, a new direction, or a niche to fill in 2023, browse the categories and note the gaps. There is always a delicate balance for Felt between growing demand (finding more buyers) and meeting demand (having more of your items for sale). If you have an idea to put out there, we’re happy to chat and offer our insights.