Spend on warehousing because of the efficiencies driven from the logistics team down quarter-on-quarter and driving leverage year-on-year. And, of course, I touched on our customer acquisition spend down 18% year-on-year, driving significant operating leverage and demand generation savings driving order contribution up there as well. So we’re seeing the effects come through. There will be more to flow through. There are actions that are ongoing to see that flow through and savings step up as we move through the next few quarters. I don’t want to quantify that exact number because we are using some of those savings to reinvest we’re seeing near-term growth. Clearly, the partnership with Reebok has started off well, and we will start to see trade from that relationship across Q2 next year.
And we’re also, obviously, focused very heavily on the fantastic new clients that FPS will be going live with starting across H1 and into H2 next year as well. So there is some reinvestment of the savings. There is — but there is leverage coming through now and very pleasing to see.
Lauren Schenk: Thank you.
Operator: Our next question is from Abhinav Sinha from Societe Generale. Please unmute your audio and ask your question.
Abhinav Sinha: Thanks for taking my question. Any comment on the current trading, please? How you are seeing in terms of the customers, the categories and geographies? Thanks.
Elliot Jordan: Yeah, I’ll take that. So as we said earlier on, the three main geographical groupings that we present to investors is Europe, Middle East and Africa. That was in decline year-on-year, largely due to the translation from US dollars and, of course, the closure of the Russian market. Important to note and remind everyone that Russia was about 7% of GMV on the marketplace for 2021, so a significant removal of GMV across 2022. We’ll annualize that negative headwind in the back end of Q1. So from March onwards, we will be like-for-like, again, across Europe, Middle East and Africa. On Asia Pacific, China, actually, the main sort of driving factor there in terms of decline year-on-year. Again, this is due to the ongoing restrictions around COVID.
We are seeing slightly better results though, as in the year-on-year decline was less severe in Q3 than it was in Q2. So that’s promising in terms of green shoots of growth the demand clearly there. And when our business model of cross-border packages frees up in terms of trade, we would expect to see a good level of pickup. As José touched on earlier around China being a significant market opportunity for us in the near-term. In the Americas, what we’re seeing overall, the grouping is flat, broadly flat year-on-year. It’s being brought down a little bit by the US, our number one market. What we started to see across Q3 was a heightened level of promotional activity from the competitive set. I would note a number of other players in the space have had the gross margins impacted.
They’ve been reporting negative gross margins, not Farfetch. Our gross margin is up significantly year-on-year because we’re not following this heavy promotional activity. What we’re seeing and would expect now is that Q4 is going to get worse. There’s lots of stock out there at the moment in terms of inventory of product. And that only has to be cleared across the next quarter. We would expect that to be promotions and Farfetch won’t be following those promotions will be maintaining of value of margin and customer value, and that will come at the expense of GMV in the US across the quarter ahead. It’s a deliberate decision to maintain a focus on full price for our participants on the platform and drive our own margins. The other thing we’re seeing is very high media inflation year-on-year.
