Retail

Online Shoppers Could Spend Half of Holiday Budget by Cyber Monday

Shoppers have been spending more time (and money) online this year, and if estimated Cyber Monday spending tops about $5 billion, half of forecast e-commerce spending for the 2020 holiday season will be in the books with nearly a month to go before Christmas.

According to Adobe Analytics, e-commerce spending through Sunday totaled $89.5 billion, out of a forecast total of $189 billion. The not-so-good news is that shoppers at brick-and-mortar stores dropped by 52% year over year as Americans chose to remain in the relative safety of their own homes.

Black Friday shoppers spent nearly $9 billion online, the second-highest total for any single U.S. shopping day in history, behind some $9.4 billion spent last year on Cyber Monday. According to Adobe Analytics, the top five products for Black Friday were Hot Wheels, Super Mario 3D All-Stars, Animal Crossing, Airpods and Apple Watch.

Traffic to physical stores declined by nearly 95% on Thanksgiving Day as many retailers closed their stores for the holiday. For all of last week, store traffic was down by more than 42%, according to data from Sensormatic Solutions.

Adobe Analytics’ holiday e-commerce spending forecast of $189 billion is in line with a forecast spending range of $182 billion to $196 billion from Deloitte and below a range of $202.5 billion to $218.4 billion from the National Retail Federation. Adobe’s e-commerce spending range runs from a low of $171 billion (up 20% year over year) to $209 billion (up 47%).

Spending on computers and other devices amounted to nearly 7% of Black Friday spending, compared to just over 3% on smartphones. For the month of November, through Sunday, spending on laptops and other devices totaled $53.9 billion, compared to $35.6 billion spent on new smartphones.

For the weeks ahead, Adobe’s survey showed that shoppers expect to see better pricing on sporting goods (discounts averaging 27%) through December 13, electronics (discounts of 19%) between December 13 and 18, and tools and home improvement goods (discounts of 12%) from December 18 to December 26.

Over the weekend, e-commerce platform Shopify reported that sales from customers using its platform rose by 75% year over year on Black Friday. The platform’s customers generated $2.4 billion in global sales, with mobile sales accounting for two-thirds of the total. The average cart price globally was $90.70, an increase of 11% year over year.

Cyber Monday is forecast to generate between $10.8 billion and $12.7 billion in online spending, according to Adobe, an increase of 15% to 35% year over year. Mobile shopping has so far accounted for 40% of online sales, up 12% year over year.