Adobe Data Finds Record Shopping Online

<p class&equals;"body-m"><strong class&equals;"tracking-header">SAN JOSE — <&sol;strong>Adobe released <a href&equals;"https&colon;&sol;&sol;business&period;adobe&period;com&sol;resources&sol;holiday-shopping-report&period;html">online shopping data<&sol;a> for the 2024 holiday season&comma; covering the period from Nov&period; 1 through Dec&period; 31&comma; 2024&period; Based on <a href&equals;"https&colon;&sol;&sol;business&period;adobe&period;com&sol;products&sol;adobe-analytics&period;html">Adobe Analytics<&sol;a> data&comma; the analysis provides a comprehensive view into U&period;S&period; e-commerce by analyzing commerce transactions online&comma; covering over 1 trillion visits to U&period;S&period; retail sites&comma; 100 million SKUs and 18 product categories&period;<&sol;p>&NewLine;<p class&equals;"body-m"><strong class&equals;"tracking-header">Record holiday season online&comma; propelled by mobile shopping<&sol;strong><&sol;p>&NewLine;<p class&equals;"body-m">Consumers spent <strong class&equals;"tracking-header">&dollar;241&period;4 billion<&sol;strong> online from Nov&period; 1 to Dec&period; 31&comma; <strong class&equals;"tracking-header">up 8&period;7&percnt;<&sol;strong> year-over-year &lpar;YoY&rpar; and setting a new record for e-commerce&period; 15 days saw consumers spend more than &dollar;4 billion in a single day &lpar;up from 11 days in 2023&rpar;&period; Mobile shopping hit a new milestone&comma; with the majority of online transactions &lpar;<strong class&equals;"tracking-header">54&period;5&percnt;<&sol;strong>&rpar; taking place through a smartphone this season &lpar;up from 51&period;1&percnt; in 2023&rpar;&semi; Mobile shopping was highest on Christmas Day &lpar;Dec&period; 25&rpar;&comma; driving 65&percnt; of online sales &lpar;63&percnt; in 2023&rpar;&period;<&sol;p>&NewLine;<p class&equals;"body-m">Of the &dollar;241&period;4 billion spent online this holiday season&comma; <strong class&equals;"tracking-header">over half &lpar;54&percnt;&rpar;<&sol;strong> was driven by just three categories including electronics &lpar;&dollar;55&period;3 billion&comma; up 8&period;8&percnt; YoY&rpar;&comma; apparel &lpar;&dollar;45&period;6 billion&comma; up 9&period;9&percnt; YoY&rpar; and furniture&sol;home goods &lpar;&dollar;29&period;2 billion&comma; up 6&period;8&percnt; YoY&rpar;&period; The strongest growth was observed in the grocery &lpar;&dollar;21&period;5 billion&comma; up 12&period;9&percnt; YoY&rpar; and cosmetics &lpar;&dollar;7&period;7 billion&comma; up 12&period;2&percnt; YoY&rpar; categories&comma; as consumers become increasingly comfortable purchasing these goods online&period; Other categories with notable growth this season included sporting goods &lpar;&dollar;7&period;8 billion&comma; up 7&period;4&percnt; YoY&rpar; and toys &lpar;&dollar;8&period;2 billion&comma; up 7&period;8&percnt; YoY&rpar;&period;<&sol;p>&NewLine;<p class&equals;"body-m"><strong class&equals;"tracking-header">Consumer demand driven by competitive prices<&sol;strong><&sol;p>&NewLine;<p class&equals;"body-m">Strong discounts this season drew in consumers who have become increasingly price sensitive&period; Shoppers found great deals in electronics&comma; where discounts peaked at 30&period;1&percnt; off listed price &lpar;vs 31&percnt; in 2023&rpar;&comma; as well as toys at 28&percnt; &lpar;vs 28&percnt;&rpar;&comma; apparel at 23&period;2&percnt; &lpar;vs&period; 24&percnt;&rpar;&comma; computers at 22&period;8&percnt; &lpar;vs 24&percnt;&rpar; and furniture&sol;home goods at 19&percnt; &lpar;vs 21&percnt;&rpar;&period; Discounts also hit record highs for televisions at 24&period;2&percnt; &lpar;vs 23&percnt;&rpar;&comma; appliances at 19&period;2&percnt; &lpar;vs 18&percnt;&rpar; and sporting goods at 19&period;5&percnt; &lpar;vs 18&percnt;&rpar;&period;<&sol;p>&NewLine;<p class&equals;"body-m">This season&comma; Adobe’s data showed that for every 1&percnt; decrease in price&comma; demand increased by 1&period;029&percnt; compared to the 2023 season&period; This drove an additional <strong class&equals;"tracking-header">&dollar;2&period;25 billion<&sol;strong> in online spend—a figure factored into the overall &dollar;241&period;4 billion spent online—and shows the stronger response to discounts from price-sensitive shoppers&period;<&sol;p>&NewLine;<p class&equals;"body-m">Strong discounts this season also drove consumers to purchase higher-ticket items in categories such as electronics&comma; appliances and sporting goods—propelling e-commerce growth as a result&period; This season&comma; the share-of-units-sold for the most expensive goods <strong class&equals;"tracking-header">increased by 21&percnt;<&sol;strong> overall <strong class&equals;"tracking-header">&period;<&sol;strong> Within categories&comma; this figure was up 54&percnt; in sporting goods&comma; up 48&percnt; in electronics&comma; up 35&percnt; in appliances&comma; up 32&percnt; in personal care products and up 10&percnt; in apparel&period;<&sol;p>&NewLine;<p class&equals;"body-m"><strong class&equals;"tracking-header">Generative AI embraced as shopping assistant<&sol;strong><&sol;p>&NewLine;<p class&equals;"body-m">This season&comma; traffic to retail sites from generative AI-powered chat bots &lpar;shoppers clicking on a link to a retail site&rpar; increased by <strong class&equals;"tracking-header">1&comma;300&percnt;<&sol;strong> compared to the year prior&period; Cyber Monday saw the biggest growth in chat bot usage&comma; <strong class&equals;"tracking-header">up 1&comma;950&percnt;<&sol;strong> YoY&period; While the base of users remains modest&comma; the uptick shows the value that chat bots are playing as shopping assistants&period; In an Adobe survey of 5&comma;000 U&period;S&period; consumers&ast;&ast;&comma; 7 in 10 respondents who have used generative AI for shopping believe it enhances their experience&period; Additionally&comma; 20&percnt; of respondents turn to generative AI to find the best deals&comma; followed by quickly finding specific items online &lpar;19&percnt;&rpar; and getting brand recommendations &lpar;15&percnt;&rpar;&period;<&sol;p>&NewLine;<p class&equals;"body-m">&OpenCurlyDoubleQuote;The 2024 holiday season showed that e-commerce is being reshaped by a consumer who now prefers to transact on smaller screens and lean on generative AI-powered services to shop more efficiently&comma;” said Vivek Pandya&comma; lead analyst&comma; Adobe Digital Insights&period; &OpenCurlyDoubleQuote;It presents opportunities for retailers to deliver new services and experiences that capture the attention of consumers&comma; many of whom are now shopping online in different ways&period;”<&sol;p>&NewLine;<p class&equals;"body-m"><strong class&equals;"tracking-header">&OpenCurlyQuote;Buy Now&comma; Pay Later’ usage continues to rise<&sol;strong><&sol;p>&NewLine;<p class&equals;"body-m">While consumers drove record spending online&comma; many are giving themselves greater flexibility with their budgets&period; This season&comma; &OpenCurlyQuote;Buy Now&comma; Pay Later’ &lpar;BNPL&rpar; usage hit an all-time high&comma; contributing <strong class&equals;"tracking-header">&dollar;18&period;2 billion<&sol;strong> in online spend&comma; <strong class&equals;"tracking-header">up 9&period;6&percnt;<&sol;strong> YoY and representing &dollar;1&period;6 billion more than the last season&period; Smartphones are the form factor of choice for consumers leveraging this flexible payment method&comma; driving the vast majority &lpar;<strong class&equals;"tracking-header">79&period;1&percnt;<&sol;strong>&rpar; of BNPL purchases this season&period; Additionally&comma; Cyber Monday was the biggest day on record for BNPL&comma; driving &dollar;991&period;2 million &lpar;up 5&period;5&percnt; YoY&rpar;&period; Per Adobe’s survey&comma; consumers tend to leverage BNPL for purchases in electronics &lpar;per 57&percnt; of respondents&rpar;&comma; apparel &lpar;51&percnt;&rpar;&comma; video games &lpar;36&percnt;&rpar;&comma; groceries &lpar;33&percnt;&rpar;&comma; toys &lpar;30&percnt;&rpar;&comma; health&sol;beauty &lpar;28&percnt;&rpar; and home&sol;garden &lpar;19&percnt;&rpar;&period;<&sol;p>&NewLine;<p class&equals;"body-m"><strong class&equals;"tracking-header">Additional Adobe Analytics insights<&sol;strong><&sol;p>&NewLine;<ul class&equals;"body-m">&NewLine;<li><strong class&equals;"tracking-header">Hot Sellers<&sol;strong>&colon; Within the electronics category&comma; top sellers this season included TVs&comma; Bluetooth headphones&sol;speakers&comma; smart watches and fitness trackers&period; In apparel&comma; puffer&sol;fleece jackets&comma; boots&comma; purses&sol;crossbody bags and socks were top sellers&period; In the furniture&sol;home category&comma; holiday decor&comma; bedding&sol;linen sets&comma; storage solutions&comma; accent chairs and throw pillows&sol;blankets were popular&period; Top toys this season included LEGO sets&comma; card&sol;board games&comma; Tonie Audio Play figurines&comma; X Shot Insanity&comma; stuffed animals&sol;dolls&comma; Cookeez Makery Oven playset and Harry Potter toys&sol;figurines&period;<&sol;li>&NewLine;<&sol;ul>&NewLine;<ul class&equals;"body-m">&NewLine;<li><strong class&equals;"tracking-header">Hot Sellers<&sol;strong> &lpar;cont&period;&rpar;&colon; In video games&comma; Mario games &lpar;Super Mario Odyssey&sol;Mario Kart 8 Deluxe&rpar;&comma; Marvel&&num;8217&semi;s Spiderman 2&comma; various Zelda games&comma; Animal Crossing New Horizons and Madden 25 were hot sellers&comma; and the Xbox Series X&comma; Nintendo Switch OLED&comma; PlayStation 5 and Meta Quest were top gaming consoles&period; Other hot sellers this season included Dyson Airwrap&comma; makeup&sol;skincare sets&comma; espresso machines&comma; gift cards&comma; jewelry&comma; electric scooters&sol;bikes and perfume&sol;fragrances&period;<&sol;li>&NewLine;<&sol;ul>&NewLine;<ul class&equals;"body-m">&NewLine;<li><strong class&equals;"tracking-header">Impact of influencers&colon;<&sol;strong> Across major marketing channels&comma; paid search has remained the top driver of retail sales this holiday season&comma; with its share of revenue at 29&period;7&percnt; &lpar;up 1&percnt; YoY&rpar;&period; In affiliates and partners—which includes social media influencers—share of revenue came in at 17&period;6&percnt; but has grown more substantially &lpar;up 6&percnt; YoY&rpar;&period; This channel also outpaced retailer traffic from social media overall &lpar;around 5&percnt; of revenue share&rpar;&comma; which grew 5&period;4&percnt; YoY&period; Influencers are also converting shoppers &lpar;individuals making a purchase after seeing influencer content&rpar; 9 times more than social media overall&period; In Adobe’s survey&comma; 37&percnt; of GenZ respondents have purchased something based on an influencer’s recommendation&period;<&sol;li>&NewLine;<&sol;ul>&NewLine;<ul class&equals;"body-m">&NewLine;<li><strong class&equals;"tracking-header">Curbside pickup&colon;<&sol;strong> The fulfillment method was used in 17&period;5&percnt; of online orders this holiday season&comma; for retailers that offer the service &lpar;down from 18&period;4&percnt; in 2023&rpar;&period; While usage has come down this season&comma; a significant number of shoppers continue to find value in the fulfillment service for speed and convenience&period; This season&comma; curbside pickup peaked on Dec&period; 23 &lpar;the day before Christmas Eve&rpar;&comma; driving 37&period;8&percnt; of online orders as anxious shoppers used the service to make sure they got gifts on time&period;<&sol;li>&NewLine;<&sol;ul>&NewLine;<ul class&equals;"body-m">&NewLine;<li><strong class&equals;"tracking-header">Cyber Week recap<&sol;strong>&colon; Record online spending this season was bolstered by a strong Cyber Week &lpar;the five days from Thanksgiving to Cyber Monday&rpar;&comma; which brought in &dollar;41&period;1 billion online overall&comma; up 8&period;2&percnt; YoY&period; Cyber Monday remained the season’s and year’s biggest online shopping day&comma; driving &dollar;13&period;3 billion in spend&comma; up 7&period;3&percnt; YoY&period; However&comma; growth was stronger on Thanksgiving &lpar;&dollar;6&period;1 billion&comma; up 8&period;8&percnt; YoY&rpar; and Black Friday &lpar;&dollar;10&period;8 billion&comma; up 10&period;2&percnt; YoY&rpar;&comma; as consumers embraced earlier deals&period;<&sol;li>&NewLine;<&sol;ul>&NewLine;

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