E-Commerce

MLM Sales Spike After Americans Receive Their CARES Relief Payments

Self-isolating Americans are eating more of their meals at home, but shopping online for groceries is only the first step. They also have to prepare those meals, and it appears many discovered they didn’t have the necessary cooking supplies. That likely explains why Pampered Chef has seen a nearly 800% increase in transactions, reflecting a trend across the Multi-Level Marketing (MLM) industry. 

We analyzed year-over-year transaction growth for MLM merchants beginning on April 15th – the day the Internal Revenue Service began depositing money in Americans’ bank accounts following the passage of the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act economic stimulus package. 

Sales rose dramatically compared to 2019, and remained elevated through May 9th:

The data for the top performers is staggering, with Pampered Chef driving the Other category. Note that much of the MLM industry’s overall growth has come from merchants outside the Beauty and Diets, Vitamins & Supplements product categories:

 

It appears that taco night at home has never been more popular. The tortilla warmer is the biggest contributor to Pampered Chef’s growth:

This analysis of the MLM industry is one example of the myriad trends related to the impact of the coronavirus pandemic that we cover in our E-Commerce Monitor report series. Sign up below to learn how you can receive future reports analyzing e-commerce trends.

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