Holiday spending sets new record online: Report
Online spending during the 2023 holiday season hit a new record, according to a recent report from data firm Adobe Analytics.
The numbers, released Thursday, showed online spending between Nov. 1 and Dec. 31 spiked by nearly 5 percent to a record high of $222.1 billion on retailer websites and apps. This is an increase of 10.4 billion from the previous year, Adobe noted.
Mobile shopping also had a breakthrough this past holiday season, surpassing desktop for the first time and accounting for 51.1 percent of online sales, according to the report. This is up from 47 percent in 2022 and was highest on Christmas Day.
Consumer spending was partly driven by discounts across several categories, including electronics, toys and apparel. Shoppers, according to Adobe, also more often used the “Buy Now, Pay Later,” payment method — which allows them to pay for items in smaller increments over time.
This method accounted for $16.6 billion in the season’s online spending, a $2.1 billion jump from the previous season. Spending using the later payment option was highest on Cyber Monday, a marketing campaign involving discounts and deals for shoppers following in-store, and online, Black Friday deals.
“In an uncertain demand environment, retailers leaned on discounting and flexible payment methods to entice shoppers this holiday season,” said Vivek Pandya, a lead analyst for Adobe Digital Insights. “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.”
Adobe also found that consumer spending was driven by demand, as opposed to inflation. The company explained in its report that while the numbers are not adjusted for inflation, consumer spending would’ve had an even higher growth if online inflation was factored in.
Since peaking at a rate of 9.1 percent last summer, inflation has largely eased and fell to 3.2 percent as of October. The Federal Reserve left their key interest rate unchanged for the third time during last month’s meeting and asserted inflationary pressures appear to be easing, The Associated Press reported.
Adobe analyzed direct consumer online transactions of more than 1 trillion visits between Nov. 1 and Dec. 31.
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