Online shopping in the U.S. reached $4.2 billion on Thanksgiving Day, the first time online sales hit the $4 billion mark, up 14.5 percent from last year’s $3.7 billion, according to a new compilation released by Adobe Analytics, a market research firm. However, overall spending remained slightly below the estimate of $4.4 billion.
Smartphones and tablets continue to perform strongly in terms of browsing and conversion rates. Adobe Analytics said 45 percent of sales on Thanksgiving Day came from mobile, up 24.4 percent from 33.5 percent last year.
“For the first time, Thanksgiving online spending has exceeded $4 billion and is fast becoming the first time consumers will accelerate their holiday spending and shopping,” said Jason Woosley, Adobe Analytics’ vice president of merchandise and platforms. By increasing discounts and raising awareness of Thanksgiving sales, the big retailers were able to triple their revenue, generating a total of $4.2 billion in consumer spending (up 14.5 percent year-on-year). But don’t expect that momentum to slow any time soon, given that Black Friday is expected to see $7.5 billion in online spending, it’s clear that the shopping frenzy among retailers and shoppers is yet to come. ”
On Thanksgiving Day, revenues at big retailers continued to surge, in part because they had more goods for sale. Adobe Analytics said sales of the “e-commerce giant” with annual revenues of more than $1 billion rose 244 per cent on Thanksgiving Day, while smaller retailers grew by only 61 per cent. This may be partly related to the more efficient and flexible delivery methods that large retailers typically have: this year, 61% of online shoppers plan to take advantage of day-to-day or in-store/roadside pickups. So far, sales of such products have increased 39.9 percent in the quarter from a year earlier, Adobe Analytics said.
Adobe Analytics tracks 80 of the top 100 U.S. retailers in real time, including 55 million SKUs (stock holdingunits) and about $1 trillion in transactions during the holiday sales period. Earlier in the day, the agency said online sales were $2.1 billion as of 5 p.m. EST, up 20.2 percent from a year earlier. About 46.4% of online purchases are done via smartphones, up nearly 13 percentage points from 33.5% in 2018. At the same time, smartphone browsing also increased, with 63.4% of visits coming from smartphones, compared with 56.6% that month.
Prior to that, Adobe Analytics said at 10 a.m. that online sales were $470 million, up 14.5 percent from a year earlier. Overall, total sales on Thanksgiving Day are expected to reach $4.4 billion.
At the same time, Shopify, an e-commerce back-end provider, uses data from online retailers that sell from the Shopify API to track sales in real time during the holiday season. Shopify said sales were $671,000 per minute at the 3:05 p.m. eastern time peak. About 5.3 million consumers brought in $442 million in revenue for their businesses that day, according to the company’s final Thanksgiving data release. Overall, sales were up 62% from a year earlier.
Similar to Adobe Analytics’ data, Shopify found that 69% of sales came from mobile devices, with clothing and accessories the most popular category, while New York was the best-selling city. As the deal progressed, the average shopping cart was rising, to an average of $81.12 globally, compared with an average of nearly $82 in the U.S.
After Thanksgiving, all eyes are now on Black Friday. Until online shopping is popular, Black Friday (the day after Thanksgiving) is often seen as the beginning of the traditional holiday shopping season. However, with the rise of the internet and increased competition for shoppers’ attention, retailers have begun to implement their strategies more and more early in order to make a breakthrough in sales.
Analysts noted earlier this week that many retailers have completed Their Black Friday promotions ahead of schedule this year. So far, Sales in November reached $53 billion. Total holiday sales this year are expected to reach nearly $144 billion. On Thanksgiving Day, Fire TV, Apple laptops and HP laptops are the most popular electronics.
Paid searchaccounted for 24 per cent of all purchases, while social networks (20 per cent) and email (9.4 per cent) were the second and third most popular contact consumer methods, respectively. Online red led one in ten consumers to buy products.
Jason Woosley, Adobe Analytics’ vice president of merchandise and platforms, said: “The strong performance of online sales so far suggests that holiday shopping is much earlier than ever. The day before Thanksgiving, popular goods like computers are discounted, suggesting that many of the best deals of the season are already on sale. This led to a significant increase in online sales (up 16.1% yoy). For retailers, it’s important to see if early discounting will drive continued growth in the overall retail sector, or whether it will encourage consumers to spend their holiday budgets ahead of time. ”
Adobe Analytics said sales on Black Friday this year are expected to reach $7.4 billion, up 14.9 percent from last year.