Steep Discounts Buoy Online Holiday Sales

E-commerce spending in the US hit a new record this holiday season as shoppers looked to benefit from heavy discounts, according to Adobe Analytics.

Total online sales for the November-to-December period rose 4.9% year on year to $222.1 billion, Adobe said last week. That figure is higher than last year’s 3.5% increase and just slightly above the 4.8% rise to $221.8 billion Adobe forecast in October.

“In an uncertain demand environment, retailers leaned on discounting and flexible payment methods to entice shoppers this holiday season,” said Vivek Pandya, lead analyst for Adobe Digital Insights. “The strategy was effective, driving record spend online during big days like Cyber Monday and Black Friday, and a record 11 days that surpassed $4 billion in daily spend this season.”

Consumers spent a total of $123.5 billion in November, up 6% year on year, while in December, online sales rose 3.7% to $98.6 billion. Of the $222.1 billion spent online throughout the holiday season, 65% was driven by five categories: electronics, at $50.8 billion; apparel, at $41.5 billion; furniture, at $27.3 billion; groceries, with $19.1 billion; and toys, garnering $7.7 billion. Those were also the categories with the strongest discounts, Adobe noted.

For the first time, mobile shopping overtook desktop, nabbing 51% of total online sales, up from 47% in 2022. Purchases through mobile phones were highest on Christmas Day, as consumers took advantage of final deals and redeemed gift cards, Adobe explained. “Buy now, pay later” was also a growing trend, with total spend using that payment method increasing 14% year on year to $16.6 billion, an all-time high, Adobe added.