Online spending by US shoppers rose 4.9 per cent during the 2023 holiday season, an Adobe Analytics report showed, as intense promotions on items such as apparel, as well as deferred payment options helped fuel consumer appetite.
Americans spent roughly US $ 222.1 billion online between 1st November and 31st December, which is slightly more than Adobe’s initial estimate of US $ 221.8 billion, according to the research. Online expenditure increased by 3.5 per cent in 2022.
On some of the largest shopping days, like Cyber Monday, Thanksgiving, and Black Friday, wary consumers were enticed to part with their cash by steep discounts. ‘Buy now, pay later’ (BNPL) services also saw a 14 per cent increase in customer usage.
“In an uncertain demand environment, retailers leaned on discounting and flexible payment methods to entice shoppers this holiday season,” said Vivek Pandya, lead analyst at Adobe Digital Insights.
Adobe noted that rather than rising costs, the period’s increase in online expenditure was driven by increased consumer demand. November’s Labour Department report indicating that US producer prices remained stable contributed to the overall indicators of declining inflation.
Even while holiday sales increased this year, the growth rate is still below pre-pandemic levels. The Mastercard SpendingPulse data from last week revealed that US retail sales increased less quickly than anticipated between 1st November and 24th December.
Adobe Analytics tracks website transactions to gauge e-commerce, and it has access to information about purchases made at 85 per cent of the top 100 online merchants in the US.
About 56 per cent of the total online spending was in November, when shoppers took advantage of hefty discounts during the Cyber Week to make purchases, according to Adobe.
