Title: Black Friday Shatters Records with $9.8 Billion E-commerce Spending in the US
Black Friday e-commerce spending in the US has skyrocketed to an all-time high, reaching a staggering $9.8 billion – a notable 7.5% increase compared to the previous year. These figures indicate a consumer base that is more willing to spend compared to 2022, when high gas and food prices had a significant impact on consumer behavior.
The surge in spending can be attributed in part to the widespread adoption of mobile shopping. An impressive $5.3 billion of online sales were made through mobile devices, highlighting the crucial role played by these devices in fueling the growth of Black Friday spending. Influencers and social media advertising have contributed to consumers’ increasing comfort with mobile shopping, as they provide a sense of trust and familiarity.
Consumers are also displaying price sensitivity due to the record inflation and interest rates experienced last year. This was reflected in the $79 million worth of sales made by consumers using the ‘Buy Now, Pay Later’ payment method. The ability to make purchases now and pay later has undoubtedly enticed price-conscious shoppers into making more purchases.
In terms of categories, electronics, toys, and gaming dominated the best-selling products on Black Friday, proving to be the most sought-after items. However, home-repair tools notably underperformed.
Interestingly, while in-store sales experienced a modest increase of just over 1%, it was online sales that saw significant growth, with an impressive 8% increase compared to the previous year. The convenience of online shopping, allowing consumers to easily make side-by-side price comparisons and secure better deals, has contributed to this shift.
Retailers have grasped the importance of attracting deal-hunting consumers and have increased discounting levels accordingly. This strategy, coupled with the convenience and wider product selection available online, has driven a surge in online sales on Thanksgiving, which totaled a staggering $5.6 billion.
According to Adobe, the strong spending is expected to continue throughout the weekend and into Cyber Monday. Online shoppers are forecasted to spend approximately $10 billion on Saturday and Sunday, with an astonishing predicted spend of $12 billion on Cyber Monday.
However, as the holiday season progresses, spending is expected to weaken as discounts decrease. Procrastinating gift-givers may continue to spend late into December, but the real growth surges occur in November and Thanksgiving week, as consumers seize the opportunity to grab the best deals.
All in all, Black Friday 2022 has set a new record for e-commerce spending, reflecting a consumer base eager to make the most of discounts and offers. Mobile shopping, favorably influenced by influencers and social media advertising, has played a pivotal role in this growth. While the situation may change as the season progresses, forecasts indicate a strong and fruitful holiday season for retailers.
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