Packages Amazon.com Inc. are in front of the FedEx Corp. delivery truck. in NYC.
Christopher Lee | Bloomberg | Getty Images
Consumers went online on Monday and spent $ 10.7 billion, down 1.4% from last year, according to data released Tuesday by Adobe Analytics.
This year, Adobe saw spending cuts on large purchase days for the first time. The firm first began filing ecommerce reports in 2012 and analyzes over 1 trillion visits to retailer websites.
Despite the slowdown, Adobe expects to see record e-commerce activity throughout the holiday season as shoppers spread their dollars over more days.
From November 1 to Cyber Monday, consumers in the United States spent $ 109.8 billion online, up 11.9% from last year, according to Adobe data. And on 22 of those days, consumers purchased over $ 3 billion worth of merchandise, another new milestone, the report said.
Adobe expects digital sales to hit $ 207 billion from November 1 to December 31, representing a record profit of 10%.
Retailers boosted online sales by $ 10.8 billion last cyber Monday as more people stayed home and avoided shopping at retailers’ stores amid the ongoing coronavirus pandemic. It was a record day for online shopping in the United States.
The slight slowdown in online spending follows the same pattern as Thanksgiving and Black Friday this year, as shoppers seem to spread their dollars over more days instead of squeezing their purchases into Cyber Week. This behavior is encouraged in part by retailers, including e-commerce giant Amazon, which have been promoting Black Friday-style deals since October.
Retailers saw $ 8.9 billion in online sales on Black Friday, up from a record $ 9 billion spent on Friday after Thanksgiving a year earlier, according to Adobe data. And on Thanksgiving, consumers spent $ 5.1 billion online, which is unchanged from last year.
Stores were also slightly less crowded this year on key shopping days compared to the period leading up to the pandemic, as retailers did not give consumers less reason to line up in front of the mall in the wee hours of the morning. According to separate data from Sensormatic Solutions, Black Friday shopper traffic was up 47.5% year-over-year, but still down 28.3% year-over-year. Many retailers, including Walmart and Target, also closed their doors on Thanksgiving this year.
“With early deals in October, consumers weren’t looking forward to discounts on big shopping days like Cyber Monday and Black Friday,” said Taylor Schreiner, director of Adobe Digital Insights.
Another factor contributing to shoppers gaining an edge when purchasing gifts this year is ongoing concerns about global supply chain bottlenecks and concerns about out of stock.
On Cyber Monday, Adobe found that the prevalence of online out-of-stock reports rose 8% from the previous week. Out-of-stock reports on retailer websites rose 169% in November from pre-pandemic levels, he said. According to Adobe, shoppers find items out of stock 258% more often than two holidays ago.
Discounts were also weaker compared to past holidays, which could give consumers less reason to log in and search for deals or discourage spending.
On Cyber Monday, discounts on electronics were 12%, up from 27% a year earlier. Clothes fell 18% from 20% a year earlier. And household appliances fell by only about 8% compared to 20% in 2020.
Inflation of everything from fuel to raw materials is forcing some businesses to pass some of these costs onto consumers. Adobe said the final price of consumer carts on Cyber Monday was up 13.9% from a year ago. It was also partly due to more buyers buying more expensive items such as furniture, the report said.
The National Retail Federation, the leading trade group for the retail industry, coined the term Cyber Monday in 2005 after it noticed an increase in the number of people shopping online on the Monday following Thanksgiving.
The NRF predicts that US retail sales in November and December will grow by a record 8.5-10.5% year-on-year to a whopping $ 859 billion. According to the NRF, over the past five years, the average growth has been 4.4%.