US' online spending hits record $222.1 bn in holiday season: Adobe

In November alone, online spending reached $123.5 billion, up 6 per cent YoY, fuelled by a robust Cyber Week (the period between Thanksgiving and Cyber Monday), which accounted for $38 billion in online sales, a 7.8 per cent YoY increase. December's online expenditure totalled $98.6 billion, showing a 3.7 per cent YoY growth, boosted by extended discounts beyond Cyber Monday.

Significant discounts across various e-commerce categories drove consumer spending. Apparel discounts peaked at 24 per cent off the listed price, compared to 19 per cent in 2022, with sporting goods also seeing substantial discounts of 18 per cent, up from 10 per cent, as per Adobe.

The holiday season witnessed a surge in 'buy now, pay later' (BNPL) usage, reaching an all-time high of $16.6 billion in online spend, a 14 per cent increase YoY. This trend was particularly notable in November, which saw the highest monthly BNPL usage of $9.2 billion, up 17.5 per cent YoY. Cyber Monday emerged as the biggest day for BNPL transactions, recording $940 million, a remarkable 42.5 per cent YoY increase. Overall, BNPL contributed $75 billion in online spend in 2023, a 14.3 per cent increase from 2022.

Over half of the total online spending, 65 per cent, was driven by five categories, with apparel at $41.5 billion. Mobile shopping overtook desktop for the first time, accounting for 51.1 per cent of online sales, reaching its peak on Christmas Day at 63 per cent.

In terms of retailers' marketing strategies, paid search was the top driver of online sales this season, contributing 29.4 per cent. Other significant channels included direct web visits, affiliates/partners, organic search, and email. While social media's contribution remained below 5 per cent of total sales, it saw a 5 per cent YoY growth.

Despite inflation concerns, strong consumer spending was driven primarily by new demand rather than higher prices. Adobe's Digital Price Index, tracking online prices across 18 categories, indicates that e-commerce prices have been decreasing for over a year, showing a 5.3 per cent decline YoY in December 2023.

Fibre2Fashion News Desk (DP)