Sales declined slightly for customized products e-retailer CafePress Inc. during the third quarter, but declines were much smaller than previous quarters, and executives say several site upgrades are boosting traffic and orders.
Third quarter revenue for CafePress, No. 249 in the Internet Retailer 2016 Top 500 Guide, dropped 1.5% compared to last year. This follows several quarters of much bigger declines, including a 9.2% drop in Q2 2016 and a 23% decline in Q1.
Following a user experience test performed in the first half of the year, the e-retailer rolled out a refreshed CafePress.com with improved navigation during the quarter. It also updated its mobile site to ensure a more consistent experience across all devices. Mobile traffic grew in the high single digits year over year in the third quarter, and mobile sales grew in the low double digits, the merchant says.
CafePress also overhauled its customer database to allow for easier segmentation and better targeting in its marketing campaigns. Early signs show that the tools are driving positive results, though the merchant did not disclose details.
The number of orders placed during the quarter increased by 9% compared with last year, though the gains were not strong enough to offset an 11% decline in average order value.
“In the third quarter, we substantially narrowed our year-over-year net revenue declines to just 2%,” CEO Fred Durham told analysts last week on a conference call transcribed by SeekingAlpha. “While we’ve not turned the corner on revenue growth, the sequential improvement shows that we are making the changes necessary to deliver on our commitment to restore revenue growth and we believe that we are moving in the right direction.”
For the period ended Sept. 30, CafePress reported:
- Total sales of $19.2 million, down 1.5% compared with $19.5 million in the third quarter of last year.
- Sales and marketing expenses of $4.1 million, relatively flat.
- Technology and development expenses of $3.4 million, up 13.3% from $3.0 million.
- Net loss of $3.4 million compared to a loss of $2.1 million.
- Average order value of $31, down 11.4% from $35.
For the first nine months of the year, the retailer also reported:
- Total sales of $57.1 million, down 11.9% compared with $64.8 million in the first three quarters of 2015.
- Net loss of $29.4 million versus net income of $1.3 million.