Early Holiday Online Spending Up 5%, Adobe Reports

Business


Consumers spent $63.2 billion online during the first 20 days in November, showing a strong start to the holiday season, according to Adobe
ADBE
Analytics data released today.

Spending was up 5% compared to the same period last year, and outpaced Adobe’s 4.8% growth forecast for the November and December holiday months. Consumers also set a record for the number of days when online spending topped $3 billion, with 17 such days, compared to 13 during the same period last year.

“E-commerce growth has remained resilient so far due to strong early discounts, while also being driven by more impulse shopping on mobile devices and an uptick in the use of flexible payment methods,” Vivek Pandya, lead analyst, Adobe Insights, said in a statement accompanying the release of the data.

Deals on electronics, toys, boost sales

Deep discounting encouraged consumers to spend in early November, despite concerns about interest rates and student loan payments, Adobe reported.

Adobe found that consumers responded to double-digit discounts in categories such as toys and appliances by boosting sales in those categories.

Electronics showed discounts of up to 24%, followed by toys at 23%, apparel, 21%, televisions, 19%, appliances, 17%, sporting goods 15%, and furniture, 13%.

Top-selling toys

Online sales of toys were up 76% compared to October. Top-sellers included Roblox-related toys, Squishmallows plush dolls, Barbie dolls and related products, card games, and Legos.

The Nintendo Switch and PlayStation5 were the top-selling gaming consoles and Super Mario Bros. Wonder and Spiderman 2 were the top-selling games, Adobe reported.

Bigger discounts expected next week

Adobe is forecasting that online discounting will peak during the seven days following Thanksgiving.

Black Friday is expected to have the biggest online discounts on television, at 22% off. Sunday, Nov. 26 is expected to have the best deals for toys (up to 35% off) and apparel (25% off), according to Adobe. Cyber Monday is forecast to have the biggest discounts on electronics, at 30%, and furniture, at 19%. The best online deals in appliances (20% off) will occur on Thursday, Nov. 30. according to Adobe.

Pay-later purchases see big increase

The first 20 days of November also saw a surge in the use of buy now, pay later flexible payment plans. It drove $4.9 billion in online spending, up 14.5%, or $620 million more, compared to the same period last year.

The number of purchases made on phones and other mobile devices also grew during the first 20 days of the holiday shopping season. Mobile shopping accounted for 48.7% of online spending, up from 45.5% during the same period in 2022.

Curbside pickup, however, was down during the first 20 days in November, compared to last year. Curbside fulfillment dropped to 17.1%, from 19.4% last year. Adobe, in its report, said it views that change as a sign consumers are taking advantage of favorable shipping terms, as well as returning to in-store shopping.

Cyber Monday spending to hit $12 billion

Adobe is expecting consumers to spend $37.2 billion online during what retailers call Cyber Week, the five days from Thanksgiving to Cyber Monday. Cyber Monday is again expected to be the biggest online shopping day of the year, with $12 billion in spending expected.

Adobe tracks online prices and spending patterns throughout the year. Its report uses Adobe Analytics data drawn from analysis of over 1 trillion visits to U.S. retail sites, covering 100 million SKUs and 18 product categories.



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