This Black Friday, consumers in the United States, struggling with inflation and a difficult economic situation, shopped for deals. Online retail sales break 2020 pandemic-induced record, reaching new record: $9.12 billion on Nov. 25. That’s up 2.3% from $8.92 billion in 2021, according to Adobe Analytics, a unit of Adobe Inc., which based its estimates on 1 trillion visits to U.S. retail websites.
Online sales exceeded Adobe’s original estimate of $9 billion. That’s the forecast Adobe shared Friday morning after it reported that consumers spent a record $5.29 billion on Thanksgiving (Nov. 24), up 2.9% year-over-year. Online sales for the first three weeks of November (November 1-22) suggest consumers were waiting for deals as sales rose just 0.1% in the period compared to the same period from November 1-21, 2021.
For the entire holiday season, Digital Commerce 360 projects online holiday sales to grow 6.1% in 2022.
Technology provider Salesforce Inc. reported that Black Friday online retail sales in the US reached $17.2 billion. This is 10.2% more than a year ago. Salesforce reported that the average online discount rate in the US was 30%. In 2021, the average discount for November 23-29 in the US was 26 percent, down 8 percent from 2020.
According to Salesforce, mobile devices also played a large role in consumer purchases, accounting for 78% of web traffic. Social platforms accounted for 12% of all US and global mobile traffic, up 22% in 2022 from 2021.
Salesforce said their estimate is based on an analysis of 1 billion transactions that have passed through their e-commerce and digital marketing software.
Adobe Analytics also reported that US consumers are increasingly comfortable shopping from their phones. Black Friday mobile shoppers accounted for 48% of online sales, up from 44% in 2021.
Despite inflation, online consumers are still spending
This year, more retailers have excess inventory and are using higher discounts to encourage shoppers to buy, he said. Vivek Pandya, Lead Analyst, Adobe.
“Black Friday is different this year than in the past, as bigger discounts have led to higher spending,” says Pandya. “Consumers are using a variety of payment methods, such as smartphones, to transact.”
Figures from Adobe Analytics not adjusted for inflation.
“But even if you take into account [inflation] In recent months, e-commerce inflation has barely abated, for example, falling by 0.7% year-on-year in October,” says Pandya. According to the Consumer Price Index, online prices rose by 7.7% year-on-year in October.
Thrifty consumers choose “buy now, pay later”.
Higher prices have also led consumers to change how they pay, Pandya says. According to Adobe, Black Friday saw a 78% increase in Buy Now Pay Later (BNPL) orders compared to the previous week (November 19 – November 25).
Cautious consumers are using flexible payment options to manage their budgets in an uncertain economic environment, Pandya says.
“Buy now, pay later” is an attractive proposition for many shoppers watching how they spend this holiday season, says Ted Rossman, senior industry analyst at consumer financial services firm Bankrate.com.
“These plans are being aggressively circulated online [at checkout]”- says Rosman. “BNPL [companies] often do not charge interest, especially the “four payments in six weeks” plans.
Meanwhile, the average credit card charges 19.2%, according to Bankrate.com. That’s “the highest since we started measuring it in 1985,” Rossman said.
Electronics, smart home items, audio equipment and toys sell well
According to Adobe Analytics, the categories that led to higher online retail sales on Black Friday compared to the average day in October include:
- Online electronics sales up 221%
- Smart home features increased by 271%
- Sound equipment increased by 230%
- Trainers increased by 218%
- Toys increased by 285%
Popular toys include Fortnite, Roblox, Bluey, Funko Pop! and Disney’s Encanto. The gaming category stood out with online shoppers snapping up Xbox Series X and PlayStation 5 gaming systems, as well as FIFA 23, NBA 2k23 and Pokémon Scarlet & Violet. Other top sellers included Apple MacBooks and Dyson airwrap and vacuum products, according to Adobe.
More shoppers visited stores on Black Friday 2022
While online retail shoppers spent record amounts online, consumers also ventured into stores in 2022. According to Sensormatic Solutions, the monitoring division of Johnson Controls, in-store traffic increased 2.9% on Black Friday compared to 2021. retail store traffic.
In addition, more and more customers came into stores like fmore online shoppers chose pickup from the side, according to Adobe. Online orders are accepted outside accounted for 13% of all online orders on Black Friday vendors offering services, according to Adobe. This is down from 21% in 2021.
Total retail sales, both in-store and online, were up 12% year over year on Black Friday. Mastercard SpendingPulsewhich measures in-store and online retail sales across all forms of payment and is not adjusted for inflation. According to Mastercard, in-store sales were up 12% and e-commerce retail sales were up 14%.
Shopify Inc. announced the breaking of the record Sales totaled $3.36 billion on Black Friday, up 17% from 2021.
Shopify is an e-commerce platform provider for 45 retailers in the 2022 Digital Commerce 360 Top 1000, the annual ranking of North America’s leading online retailers. Adobe Commerce is the core e-commerce software used by 82 of the top 1,000 retailers, and Salesforce has 65 top 1,000 retail customers.
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https://www.digitalcommerce360.com/article/black-friday-ecommerce-sales/ 2022 Black Friday Online Sales to Reach Record $9.12 Billion