Online sales for Thanksgiving and Black Friday reach $ 14 billion

Adobe Digital Economy Index showed consumers spent $ 14 billion online during Thanksgiving and Black Friday combined. The results are broken down with $ 8.9 billion in online sales on Black Friday and $ 5.1 billion on Thanksgiving Day. This is the first time that the two days saw no increase in online spending compared to last year, showing that consumers have started to shift spending towards the start of the season. In an interview with Taylor Schreiner, director of Adobe Digital Insights, he said, “We are seeing more purchases made earlier in the season, with retailers running promotions as early as October, enticing consumers to buy early. Adobe is forecasting an overall increase in online sales for the holidays of 9-10%, but spikes in buying will level off this year as consumers stagger their purchases from October to December.

Top Consumer Concerns About Vacation Spending

Persistent supply chain issues worry some consumers about getting the gifts they want in the right SKUs and sizes. Out-of-stock messages were up 124% from just before the pandemic began in January 2020. The Adobe index showed that home appliances, electronics, housekeeping supplies and the house and garden had the highest levels of out-of-stock. Schreiner said, “Retailers are doing a better job of directing online shoppers to in-stock and available products, which reduced the previous week’s out-of-stock messages by 8%. ”

The other main consumer concern that Schreiner brings up is price inflation which can impact holiday shopping, especially in the clothing category where offerings are not as strong as those in electronics and retail. toys. Schreiner said, “Supply chain challenges and headline inflation have caused retailers to restrict discounts to maintain profit margins.” All-category discounts for Thanksgiving have declined less this year than they were last year. According to the index, discounts on computers are from minus 15% from a year ago to minus 28%.

Buy-now-pay-tard (BNPL) solutions such as Sezgle, Afterpay, Plan It by American Express, and PayPal’s Pay in 4 are increasingly used as consumers look for ways to manage their vacation budgets. BNPL’s revenue increased 422% in November and is above pre-pandemic (November 2019) levels for online purchases.

Use of mobile devices continues to grow

According to the index, smartphones accounted for 44.4% of all online sales for Black Friday, a 10.6% increase year over year. As more and more consumers use mobile devices to shop and purchase products, these numbers are expected to increase. Curbside pickup is up 70% in November from pre-pandemic (November 2019) levels, a trend that will continue well into the holiday season. For Thanksgiving and Black Friday, the sidewalk accounted for 20-21% of online orders. Schreiner said, “As we get closer to the holidays, consumers will continue to use curbside pickup and same-day delivery to ensure they have gifts on hand and ready for recipients.” Consumers can choose to use these services rather than paying for expedited shipping once shipping times kick in.

Hot Selling Items

According to the Adobe Index, the categories with the highest online spend this season so far include: toys (up 954% from pre-September holiday levels), books (in up 671%), video games (up 648%), home appliances (up 617%), and personal care products (up 553%). The 376% increase in clothing is largely due to cold-weather items: outerwear (+ 720%), fleeces (+ 1090%), and hoodies (+ 805%).

Adobe predicts Cyber ​​Monday will be the biggest online shopping day of 2021, with between $ 10.2 billion and $ 11.3 billion in online spending. Total online sales will hit $ 207 billion this holiday season, which is a 10% increase over last year during the same period and a new record high. Based on data from Adobe Analytics, the analysis covers over a trillion visits to US retail sites, 100 million SKUs, and 18 product categories.

Source link

David A. Albanese