Global online sales experience modest growth post Cyber Monday

21 Dec '23

3 min read

Pic: Adobe Stock

Insights

Global online sales post-Cyber Monday rose by 1 per cent YoY to $399 billion, with the EU leading at 6 per cent growth.
US sales spiked during Cyber Week amidst flat November and December sales.
BOPIS gained popularity, accounting for 25 per cent of orders.
AI influenced 17 per cent of purchases, and over $131 billion in returns are expected.

Following Cyber Monday, global online sales have shown a slight increase of 1 per cent year-over-year (YoY), totalling an impressive $399 billion in online holiday spending, according to the latest Salesforce holiday insights. This trend is particularly pronounced in the European Union (EU), where sales have grown 6 per cent YoY since November 1, compared to just 1 per cent in the US. Despite this disparity, these numbers have contributed to an overall 3 per cent YoY increase in global online sales.

In the US, the early November and December sales remained largely flat, with an unexpected spike during Cyber Week. This pattern suggests that both retailers and consumers focused on capitalising on attractive discounts offered during Black Friday and Cyber Monday, shaping their holiday season shopping strategies, as per the Salesforce's Customer 360 platform, which analysed commerce, marketing, and customer service interactions of 1.5 billion shoppers.

A key observation post-Cyber Monday (from November 29 to December 18) is the contrast in online sales growth between the EU and the US. While the EU saw a significant increase during Cyber Week (9 per cent) and the first three weeks of November (9 per cent), the growth rate slowed to 2 per cent YoY in the three weeks following Cyber Monday. This slowdown marks a shift in the region after a robust start to the holiday shopping season.

Another emerging trend is the increasing preference for the buy online pick up in-store (BOPIS) option. This shopping method has grown in popularity as consumers seek to avoid in-store lines and shipping deadlines ahead of peak holidays. BOPIS accounted for 25 per cent of online orders in the three weeks after Cyber Monday, reaching 28 per cent the weekend of December 16. Salesforce predicts a surge in BOPIS usage during Christmas Week (December 18–25), with one-third of online orders expected to use this option.

Artificial intelligence (AI) played a significant role in influencing consumer purchases, with 17 per cent of all orders being AI-influenced since November 1. This trend indicates that AI could impact $194 billion in holiday sales for the full season.

The period following Cyber Week also saw a notable increase in product returns, more than doubling in the subsequent week and remaining high. This trend reflects consumers' increasing discernment in discretionary spending, with many returning items that don't meet their value expectations. Salesforce predicts that over $131 billion worth of orders from this holiday season will be returned in the next year.

Discount rates saw a decline post-Cyber Week, with the average discount dropping from 27 per cent during Cyber Week to 18 per cent in the first three weeks of December. General apparel emerged as one of the top discounting categories at 24 per cent.

In payment trends, the use of mobile wallets has seen a 47 per cent global increase in the three weeks following Cyber Monday. The US also witnessed a 4 per cent YoY increase in the usage of buy now pay later options, indicating a shift towards more flexible payment methods.

Mobile devices continue to dominate the digital shopping landscape, accounting for 75 per cent of digital traffic in the three weeks after Cyber Monday, underscoring the growing importance of mobile-friendly shopping experiences.

Fibre2Fashion News Desk (DP)