Cyber Week 2023: Unprecedented Surge in Holiday Shopping

Cyber Week, spanning from Thanksgiving to Cyber Monday, generated a total of $38 billion, marking a 7.8% year-over-year increase. This growth was driven by unprecedented online expenditures on Thanksgiving ($5.6 billion, up 5.5% YoY), Black Friday ($9.8 billion, up 7.5% YoY), and throughout the weekend ($10.3 billion, up 7.7% YoY), according to Adobe Analytics.

A record number of 200.4 million consumers opened their wallets over the five-day holiday weekend from Thanksgiving through Cyber Monday, surpassing last year’s record of 196.7 million, according to the National Retail Federation and Prosper Insights & Analytics.

An important measurement for many ecommerce businesses is the Average Order Value (AOV), a crucial metric for online stores, influencing pivotal business decisions like advertising spending and product pricing. This year’s average order value also saw an increase. AOV soared to $108, which is up 2.5% compared to last year.

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Mobile Sees Growth

Mobile commerce (Mcommerce) is experiencing a continued increase in popularity, with mobile devices driving 59% of online sales on Thanksgiving Day (amounting to $3.3 billion, marking a 14% year-over-year increase) and 54% on Black Friday ($5.3 billion, showing a 10.4% year-over-year growth), as reported by Adobe Analytics. As shoppers increasingly embrace on-the-go shopping, it is anticipated that mobile will contribute to 49.6% of ecommerce sales in the final two months of the year according to Insider Intelligence.

Mastercard SpendingPulse™ also reported a 2.5% YoY increase in U.S. retail sales on Friday, November 24th, excluding automotive and not adjusted for inflation. This measurement encompasses both in-store and online retail sales across various forms of payment.

Discounts Hit Record Highs

On Cyber Monday, shoppers were able to take advantage of exceptional bargains in electronics, experiencing a peak discount of 31% off the listed price compared to 25% in 2022. Substantial discounts were prevalent across various categories monitored by Adobe, including computers at 24% (up from 20%), televisions at 19% (up from 17%), apparel at 23% (up from 18%), sporting goods at 15% (up from 10%), furniture at 21% (up from 8%), and appliances at 18% (up from 16%). Notably, toy discounts fell below last year's levels at 27% compared to 34%.

In-Store Shopping Grows Only Slowly

Maintaining its status as the prime day for in-store shopping, Black Friday attracted 76.2 million shoppers to physical retail locations, demonstrating an increase from 72.9 million in 2022. Conversely, the Saturday following Thanksgiving saw a decrease in in-store shoppers, with about 59 million consumers, down from 63.4 million the previous year. Parallel to last year's figures, 78% of Saturday shoppers specifically participated in Small Business Saturday, according to the National Retail Federation.

Alternative Ways to Pay

Also notable is that consumers are finding ways to extend their budgets with the help of alternative payment methods. Buy Now, Pay Later facilitated a remarkable $940 million in online spending on Cyber Monday, reflecting an impressive 42.5% year-over-year increase. This surge underscores consumers' growing preference for flexible payment arrangements, per Adobe Analytics.

Despite the numerous challenges influencing consumer spending, such as elevated prices for everyday items because of inflation, increased interest rates, international conflicts, and restricted credit access, shoppers remain resilient.

Discover how emerging businesses can unlock growth this holiday season through agility and flexible capital.