Questions about consumer reluctance and lackluster discounts were answered by strong Cyber Week numbers this year. Over the five days from Thanksgiving to Cyber Monday online shoppers spent $38 billion total, up 7.8% year-over-year.
Cyber Monday itself was a record breaker with U.S. consumers spending $12.4 billion, up 9.6% year-over-year, according to Adobe Analytics ecommerce data. Online sales peaked from 10 p.m. to 11 p.m. EST, when customers spent $15.7 million every minute.
Cyber Week. “The 2023 holiday shopping season began with a lot of uncertainty, as consumers shifted their spending to services, while dealing with rising costs across different facets of their lives,” said Vivek Pandya, lead analyst, Adobe Digital Insights, in a release. “The record online spending across Cyber Week, however, shows the impact that discounts can have on consumer demand, especially with quality products that drove a lot of impulse shopping.”
Inflation down. Big sales numbers weren’t just due to higher prices. Ecommerce prices were down 6% year-over-year in October 2023, according to the Adobe Digital Price Index, which tracks online prices in 18 categories.
Discounts. For Cyber Monday, solid discounts were found across major categories, Adobe Analytics found. For instance, discounts on electronics peaked at 31% off the listed price (versus 25% in 2022). Computers were discounted 24%, apparel 23%, appliances 18% and sporting goods 15% — all moderately higher discounts than last year.
Furniture was discounted at 21%, much higher than last year when the category only received 8% off the listed price. Discounts for toys, conversely, came in under last year’s discounts — 27% this year versus 34% in 2022.
Black Friday. U.S. online sales on Black Friday totaled $16.4 billion, up 9%, according to Salesforce, with discount rates up as high as 30%. Adobe Analytics measured YoY growth at 7.5% — slightly lower — and sales at $9.8 billion for Black Friday.
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On Black Friday, online sellers saw total orders up 5% YoY and gross merchandise volume up 6%, according to ecommerce platform BigCommerce. Average order volume was up slightly at 1% YoY.
Online customers were up early to snag deals. Digital transactions were up 10% in the first 10 hours of Black Friday 2023 from the previous year, according to digital campaign platform Criteo. Between 9 a.m. and 10 a.m. EST, transactions were up 25.9% YoY.
Delivery or pickup? Throughout Cyber Week, 80% of online orders opted for standard delivery while 12.7% utilized curbside pickup, if those options were offered, according to Adobe Analytics.
Consumers likely were avoiding big in-store shopping crowds as 24% of BOPIS (buy online, pickup in-store) surged 20% over an average shopping day, Salesforce found. On Black Friday alone, 24% of online orders were BOPIS, according to Salesforce.
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In-store traffic. In-store shopper visits were up 4.6% over Black Friday 2022, according to Sensormatic Solutions, a global retail solutions portfolio by Johnson Controls.
This is notable because foot traffic has been down 2.4% annually thus far in 2023, Johnson Controls found.
Why we care. These numbers confirm that the holiday season is full steam ahead. Despite an early start to holiday shopping with Amazon promotions in October, consumers are seeing real discounts now and showing why they were willing to wait for them.
The post Strong Cyber Week sales show consumers are willing to spend appeared first on MarTech.
As the holiday shopping season kicks into high gear, retailers are reporting record-breaking sales during Cyber Week, the period from Thanksgiving Day through Cyber Monday. This year, consumers demonstrated their willingness to spend, with online sales reaching new heights.
According to Adobe Analytics, online sales during Cyber Week totaled $34.36 billion, a 20.7% increase from last year. Cyber Monday alone saw $10.8 billion in sales, making it the biggest online shopping day in U.S. history.
The surge in online shopping can be attributed to a number of factors. With the ongoing COVID-19 pandemic, many consumers are opting to shop from the safety and comfort of their own homes. Additionally, retailers have been offering deep discounts and promotions to entice shoppers to spend.
Another factor contributing to the high sales is the convenience of online shopping. With just a few clicks, consumers can purchase items from multiple retailers and have them delivered directly to their doorstep. This ease of shopping has made it more appealing for consumers to spend during Cyber Week.
The high sales during Cyber Week also indicate a shift in consumer behavior. With more people working from home and spending more time online, there has been an increase in online shopping overall. This trend is expected to continue, with e-commerce sales projected to reach $4.2 trillion by the end of 2020.
Retailers are taking note of this shift and are investing in their online platforms to provide a seamless shopping experience for consumers. From user-friendly websites to fast and reliable shipping, retailers are doing everything they can to meet the demands of online shoppers.
Overall, the high sales during Cyber Week demonstrate that consumers are willing to spend, despite the economic uncertainty brought on by the pandemic. With the convenience and safety of online shopping, it’s no surprise that more people are turning to e-commerce for their holiday shopping needs. As we head into the final weeks of the holiday season, retailers can expect to see continued strong sales as consumers take advantage of online deals and promotions.
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