The Census Bureau of the Department of Commerce has announced that seasonally adjusted e-commerce sales were US $ 284.1 billion, an increase of 2.3 per cent quarter over quarter.
The predicted US $ 1.825 trillion in retail sales for the third quarter represented a 1.5 per cent increase over the same period last year. 15.6 per cent of total retail sales came from e-commerce. E-commerce’s share of overall sales, at 15.5 per cent, is somewhat higher than it was in the second quarter.
The entire ‘pie’ increased by 1.5 per cent in the third quarter, but the year-over-year trend has slowed. In terms of that measure, overall retail spending decreased to 2.3 per cent from the previous year’s 9.7 per cent pace.
Spending for the fourth quarter appears to be less optimistic than expected. Walmart issued a warning as shoppers struggle to pay off debt, pay off college loans, and keep up with inflation.
In addition, the retail sales figures for October showed a dip for the first time in seven months, which is already putting pressure on traditional brick-and-mortar stores. October sales increased by 0.2 per cent over September, according to statistics from non-store retailers, which is a common proxy for online sales. However, September’s non-store retail sales increased 1.4 per cent over August, a substantial increase.
The headwinds coincide with one of the busiest seasons for consumers, when travel, holiday events, and festivities vie for their portion of disposable income. This holiday season, almost 20 per cent of customers are considering cutting back on non-essential spending. This could result in their spending less time on devices and websites searching for the next thing to add to their online shopping baskets.
