Cyber Monday brings in record haul
Cyber Monday has made history — again.
With shoppers spending $3.45 billion online on Cyber Monday, Nov. 28, a 12.1% jump year-over-year, sales not only surpassed predictions, but made this the largest Cyber Monday shopping event to date, according to Adobe Digital Insights, which aggregated data from 23 billion visits to retail websites.
Mobile spending on Cyber Monday started off strong early in the day, then slowed in the evening hours. However, it still generated $1.07 billion, a 34% YoY increase. Interestingly, this was $130 million less than Black Friday.
Specifically, mobile accounted for 47% of visits to retail web sites (38% through smartphones, and 9% via tablets: 9%) and 31% of sales (22% from smartphones, and 9% through tablets). The slight decrease is indicative that consumers were shopping from their desktops and laptops in the late evening, according to Adobe.
Conversions were well above holiday averages, with smart phones at 2.8%, tablets at 5.1% and desktops at 6.3% (compared to holiday averages of 1.3, 2.9 and 3.2%, respectively). The average order value (AOV) on iOS smartphones ($141) was slightly higher compared to Android smartphones ($128), Adobe said.
The holiday shopping season so far (November 1-28, 2016) has driven a total of $39.97 billion in online revenue, a 7.6% increase YoY. Given the strong performance of online shopping sales over Thanksgiving weekend and Cyber Monday, Adobe affirms its projection that the holiday shopping season will drive $91.6 billion in online sales.
“Cyber Monday was one for the history books this year, bringing in $3.45 billion and making it the biggest online shopping day ever,” said Tamara Gaffney, principal analyst, Adobe Digital Insights.
“Consumers converted carts into purchases at record high levels before the season, and likely the year's lowest price deals ended,” she added. “It’s an incredible milestone, but it’s also incredible that Black Friday inched so close to Cyber Monday this year, generating only $110 million less in online sales. We’ll be watching this closely next year as Black Friday could be the one to top the records.”
The top-selling electronics on Cyber Monday were the Sony PlayStation 4, Microsoft Xbox, Samsung 4K TVs, Apple iPhone and Amazon Fire. Lego sets, Nerf, Shopkins, Barbie and Pie Face Game were the top-selling toys. Shoppers found their kids’ most coveted Christmas wishes via search ads (38.5% of sales) and direct sales (25.3% of sales) —both of which drove the majority of sales on Cyber Monday. Shopper Helper sites like CNET and RetailMeNot drove 16% of sales and email drove 18.1% of sales, Adobe said.
As expected, many shoppers were attracted by retailers’ sales. The highest price drops were seen for televisions (which had an average discount of 21.4%), tablets (21.1%), toys (14.6 %), pet care (11.8 %) and computers (11.1%). Also, from Thanksgiving to Cyber Monday, the percent of purchased products that featured the same price across multiple retailers increased to 32% this year from 26% in 2015. This illustrates that online retailers are matching each other's prices, and consumers are taking advantage of it, the firm said.
Cyber Monday off to fast start
Sales on Cyber Monday, Nov. 28, are on track to rise 9.4% to $3.36 billion, according to Adobe Digital Insights.
Industry experts noted that while Cyber Monday is traditionally the biggest online shopping day of the year, it may be losing some of its luster in the wake of the most sucessful online Black Friday to date. This year, online sales totaled $3.3 billion the day after Thanksgiving.
Black Friday online sales were fuled both by the rising tide of mobile commmerce and the fact that some of the nation’s biggest retailers, including Walmart and Target, offered Cyber Monday deals and promotions ahead of the actual day.
Amazon Prime members stay home Black Friday weekend
More Amazon Prime shoppers skipped the Black Friday hype this weekend than ever before.
Only 59% of Prime members ended up shopping in-store on Black Friday, down from 65% last year. This drop represented a 9.2% year-over-year decline.
This message was delivered in a survey conducted by InfoScout. The study, which was conducted the day after Black Friday, tapped 2,000 shoppers.
“What happens when Amazon Prime membership increases by 23% to 50 million U.S. consumers over the past year, and the percentage of Prime members shopping in stores on Black Friday declines during by nearly 10%?” asked Jared Schrieber, InfoScout’s co-founder and CEO. “The answer is a decline in Black Friday shopping that should strike fear into Amazon’s competitors — both in-store and online.”
Shoppers didn’t skip store visits during the highly anticipated Black Friday weekend in favor of better prices and deals online, either. Rather, surveyed shoppers were happy to avoid "crowds, stampedes, and bad attitudes,” as well as "lines and grouchy people.”
When asked where their remaining holiday gift shopping will occur, 85% of the Amazon Prime members surveyed said they will do at least half of their shopping online. Just 15% plan to do most of their holiday shopping in-store, the study said.
"It's high-time for brick-and-mortar retailers to give their shoppers an incentive to visit them online as well,” Schrieber added.