Online shoppers broke previous records, shelling out a staggering $222.1 billion during the holiday season, according to a recent report.
Parameter-free Response:
Dive Brief:
- Broke all previous records for e-commerce spending, with online consumer spending soaring by 4.9% year over year to a staggering $222.1 billion between Nov 1 and Dec 31, as per Adobe Analytics.
- The surge in spending can be attributed to record-breaking discounts offered across various categories such as electronics, toys, and apparel.
- During the holiday season, consumers spent a whopping $16.6 billion using buy now, pay later services, marking a 14% increase from the previous year and a new all-time high.
- In 2023, consumers made $75 billion in online purchases using buy now, pay later services, representing a 14.3% increase compared to 2022.
Dive Insight:
Adobe's prediction for online holiday shopping sales was almost spot on. In its October forecast for the 2023 holiday sales figures, Adobe Analytics projected that e-commerce sales between Nov 1 and Dec 31 would reach $221.8 billion, a 4.8% increase compared to 2022.
Online consumer spending grew by 6% year over year in November, reaching $123.5 billion. This surge was largely driven by the $38 billion spent online between Thanksgiving and Cyber Monday. The following month, shoppers drove a 3.7% year-over-year increase in online spending, totaling $98.6 billion.
The holiday season saw a significant rise in usage of buy now, pay later services. Cyber Monday BNPL purchases skyrocketed by 42.5% from the previous year, reaching $940 million, setting a new record. Throughout November, the number of buy now, pay later transactions increased by 17.5% from 2022 to $9.2 billion, breaking previous records for the payment method.
The increase in buy now, pay later sales indicates a growing trend of consumers utilizing installment payment methods to finance their holiday purchases. Vivek Pandya, lead analyst at Adobe Digital Insights, said in a statement, "In an uncertain demand environment, retailers leaned on discounting and flexible payment methods to entice shoppers this holiday season. The strategy was effective, driving record spend online during big days like Cyber Monday and Black Friday, and a record 11 days that surpassed $4 billion in daily spend this season."
With more consumers using installment payment plans to finance their holiday shopping, BNPL providers have experienced a boom in orders. Klarna reported that US shoppers placed 29.5% more orders on Black Friday this year compared to last year.
Adobe also accurately forecast the growth in mobile shopping during the holiday season. More than half (51.1%) of online shoppers made purchases via smartphones during the holiday season, an increase from 47% a year ago. Consumers spent the most via mobile on Christmas Day, driving 63% of online sales.
Source:[1] Adobe Analytics, US e-commerce holiday sales grow by 8.7% to $241.4 billion in 2024 [5] Adobe Analytics, Holiday shopping prediction and insight reports for 2023 and 2024
Insights:- The popularity of buy now, pay later services is on the rise, especially among consumers making holiday purchases.- Mobile shopping continues to dominate online sales, with more than half of all online purchases being made via smartphones during the holiday season.- Retailers are increasingly reliant on discounts and flexible payment methods to attract customers during the holiday season.
- In 2023, it is expected that consumers will make $75 billion in online purchases using buy now, pay later (BNPL) services, representing a 14.3% increase compared to the previous year, according to Adobe Analytics.
- Adobe Analytics reports that consumers spent a whopping $16.6 billion using BNPL services during the 2023 holiday season, marking a 14% increase from the previous year and a new all-time high.
- Vivek Pandya, lead analyst at Adobe Digital Insights, stated that retailers leaned on discounting and flexible payment methods like BNPL to entice shoppers during the 2023 holiday season, driving record spend online.
- BNPL providers have experienced a boom in orders due to the growing trend of consumers utilizing installment payment methods to finance their holiday purchases, as illustrated by Klarna reporting a 29.5% increase in US shopper orders on Black Friday this year compared to the previous year.
