Online Retailers Are Winning Big This Holiday Season

Online Retailers Are Winning Big This Holiday Season

Retail

We’re off to the races with the 2018 holiday season, and retailers are showing some strong results with online sales. Here’s what Adobe Analytics reported:

  • Cyber Monday hit $7.9 billion in sales, making it the largest online shopping day of all time in the United States — a 19.7 percent increase year-over-year.
  • Thanksgiving Day and Black Friday brought in $3.7 billion (28 percent growth year over year) and $6.2 billion (23.6 percent growth) in revenue.
  • Saturday and Sunday, November 24 and 25, set a new record as the biggest online shopping weekend in the U.S. ($6.4 billion) growing faster than Black Friday and Cyber Monday with more than 25 percent on each day.

Not every retailer is winning this holiday season. Only retailers that do these things are reaping rewards:

  • Focusing on mobile. As we have shared on our blog, technology giants such as Google have been launching tools that make it easier for businesses to showcase inventory with shoppable ads. That’s because shoppers are using mobile as a tool to buy, not just search for places to buy. PayPal, for instance, processed more than $1 billion in mobile payments on both Black Friday and Cyber Monday (a first for PayPal on either day). On Thanksgiving, mobile accounted for 54 percent of online sales, surpassing desktop for the first time, according to Salesforce.
  • Prepared their websites. According to Multibriefs, more people were hit with “out-of-stock” messages on websites than they were last year. “Even worse, some didn’t even make it to the company website,” wrote Multibriefs. “Lowes, Target and PayPal all experienced crashes on Cyber Monday.” The companies that failed to prepare for the online buying spike lost out to sites such as Amazon, which reported its biggest shopping day in history on Cyber Monday. Who says websites are dead? If you were ready as Amazon was, you won big.
  • Moving products quickly. Amazon long ago set the standard for speedy product delivery. But many retailers such as Best Buy are catching up. This holiday season retailers are using free shipping and convenient returns as a proving ground, as this news report discusses. Last month, I predicted shipping would provide an edge to retailers this holiday season — but this prediction applies only to those who have figured out how to fulfill the uptick in demand that online ordering brings. Walmart struggled to fulfill online orders during the 2017 holiday season – let’s see how the retailer does when the dust settles on 2018.

If you took steps to prepare yourself for the onslaught of online holiday shopping – especially by attracting mobile shoppers with a strong investment into online advertising and digital commerce – the 2018 holiday season is looking very bright. For more insight into how to win with mobile shoppers, contact True Interactive. We’re here to help.

Image source: https://pixabay.com/en/holiday-shopping-smartphone-phone-1921658/

What Retail Apocalypse? Holiday Shopping Is Surging

What Retail Apocalypse? Holiday Shopping Is Surging

Marketing

Black Friday and Cyber Monday are bigger than ever. The so-called retail apocalypse might not be so apocalyptic after all – especially for retailers that have beefed up their online presence.

According to Adobe Analytics, Americans spent $19.62 billion online over the five-day period from Thanksgiving Day through Cyber Monday — 15 percent more than they spent during the same time frame in 2016. The top two days for online shopping were Cyber Monday (more than 81 million visitors) and Black Friday (more than 66 million). What can retailers learn from this explosive growth? Plenty:

  • Black Friday is more than a day. Black Friday is no longer a day, but a multi-day phenomenon, with retailers promoting online deals the entire week of Thanksgiving. In fact, major retailers were hosting Black Friday deals online before Thanksgiving week. Retailers are making Black Friday an element of a broader shopping experience.
  • Thanksgiving is becoming a big shopping day. As Adobe reported, Thanksgiving Day saw an 18.3 percent increase in online spending to $2.87 billion. In addition, a Foursquare report suggested that brick-and-mortar stores open on Thanksgiving – and open earlier in the day – would have an advantage over stores that were closed. Stores that promoted Thanksgiving Day sales, both online and offline, were likely to benefit as consumers combine shopping with eating on Turkey Day.

We expect a robust consumer spend during the holidays. Note that with Christmas Day occurring on a Monday, shoppers will accelerate their spend to avoid the problem of having to ship last-minute purchases over the weekend. Meanwhile there is still plenty of shopping to be done. Businesses that have planned ahead will win. It’s never too early to start planning for the 2018 holiday shopping season. To optimize your online spend all-year round, contact True Interactive. We’re here to help.

Image source: https://stocksnap.io/photo/RZWM4T2UAD