The stricter social distancing norms and COVID-19 restrictions have pushed shoppers to turn online this holiday season. Adobe is expecting the biggest single-day sales ever in history during Cyber Monday.
The coronavirus pandemic has changed consumer behavior and online retailers have benefitted the most from it. The latest data from Adobe Analytics shows that the 2020 Black Friday online sales will hit record highs this year. Shoppers have been avoiding store visits amid the rising COVID-19 cases.
The Adobe data shows that online sales can see a jump anywhere between 20-29% compared to the previous year. The total amount clocked by online purchases on Black Friday 2020 could be anywhere between $8.9 billion to $9.6 billion. Nearly, 42% of the total online sales by 4 PM on Friday came through smartphones. As per Adobe, US consumers spent around $6.2 million per minute during the 2020 holiday sales.
Adobe data shows that online sales also hit a record high a day before the 2020 Thanksgiving on Thursday, November 26. The sales jumped nearly 21.5% hitting a record high of $5.1 billion. Adobe gathered this data by tracking website transactions from 80 of the top 100 US online retailers. The analytics firm also noted that companies who offered faster delivery alternatives had 31% higher chances of traffic conversion on the website.
Interestingly, Adobe also anticipates that Cyber Monday shall be the largest online sales day in history. The company estimates online sales to touch anywhere between $11.2 billion and $13 billion, a whopping 19-38% jump year-over-year. Taylor Schreiner, director of Adobe Digital Insights said:
“While yesterday was a record-breaking Thanksgiving Day with over $5 billion spent online, it didn’t come with the kind of aggressive growth rate we’ve seen with the start of the pandemic. Heavy discounts and aggressive promotions starting in early November succeeded in getting consumers to open their wallets earlier. While COVID-19, the elections and uncertainty around stimulus packages and made this an unprecedented year in e-commerce”.
Black Friday 2020: Brick and Mortar Stores Turn Online
The physical brick-and-mortar stores have faced the massive heat of the COVID-19 pandemic and the government lockdowns. The store footfalls and business have hit a multi-year low. Adobe notes that 9% of all sales generated this week are though “net new customers as traditional brick-and-mortar shoppers turn online to complete transactions in light of shop closures and efforts to avoid virus transmission through in-person contact.”
Canadian e-commerce giant Shopify which tracks activity across one million merchants shared interesting statistics. It noted that the global average cart price was $86.80, and it reached $90.40 in the US specifically.
The surge in the COVID-19 cases with the second wave hitting has pushed Americans to stay indoors. There are even more restrictions concerning social distancing as people prefer to stay at home. Schreiner said:
“Families have many traditions during the holidays. Travel restrictions, stay-at-home orders and fear of spreading the virus are, however, preventing Americans from enjoying so many of them. Shopping online is one festive habit that can be maintained online and sales figures are showcasing that gifting remains a much beloved tradition this year.”
Adobe noted that toys and personal care products remained the top shopping category during the holiday season. The toys category recorded a 294% surge in online shopping while the personal care products registered 278%.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.