Cyber Monday: Consumers Scour the Internet for Deals as Season Closes
Online Shopping Heats Up Post-Thanksgiving
Consumers are scouring the internet for online deals as they begin to cap off the five-day post-Thanksgiving shopping bonanza with Cyber Monday. Even though e-commerce is now part and parcel of our everyday lives and much of the holiday shopping season, Cyber Monday – a term coined back in 2005 by the National Retail Federation – continues to be the biggest online shopping day of the year, thanks to the deals and the hype the industry has created to fuel it.
Retailers Kicking Off Sales Early
For several major retailers, the “Cyber Monday” sale is a days-long event that begins over the weekend. Amazon’s, for example, kicked off on Saturday and runs through Monday. Target’s two-day event began overnight on Sunday, while Arkansas-based Walmart kicked off its most recent discounts Sunday evening.
Consumer Spending Trends
Consumer spending for Cyber Week — the five major shopping days between Thanksgiving and Cyber Monday — provides a strong indication on how much shoppers are willing to spend during the holiday season. Shoppers have been resilient this year in the face of stubbornly high inflation, which recently reached its lowest point in more than two years but remains painfully apparent in areas like auto and health insurance and some groceries, like beef and bread.
Credit Card Debt and "Buy Now Pay Later" Payments
Consumers are also relying on savings to fuel their shopping and are facing more pressure from credit card debt, which has been on the rise along with delinquencies. They’ve also been embracing “Buy Now Pay Later” payment plans, which allow shoppers to make payments over time without typically charging interest – a model some analysts believe can make acquiring debt too easy.
National Retail Federation Expectations
The National Retail Federation expects shoppers will spend more this year than last year. But the pace of spending will slow, growing 3% to 4% compared to 5.4% in 2022, the nation’s largest retail trade group said earlier this month.
Online Spending Data
According to Adobe Analytics, which tracks online spending, consumers spent $76.7 billion from the beginning of November until Thanksgiving, when major retailers including Amazon, Target, and Walmart were already offering online deals geared towards the holidays. On Thanksgiving Day, Adobe said shoppers dolled out $5.6 billion, up 5.5% compared to last year. That’s nearly double the amount consumers spent online in 2017, showing the continued shift to online shopping during the gift-giving season.
Resale Industry Expected to Grow
The resale industry, which has grown in recent years, is also expected to be a significant part of the holiday shopping season. Salesforce predicts 17% of holiday gifts this year will come from resale markets like Facebook Marketplace or ThreadUp, as well as brands like Canada Goose, Patagonia, and Coach offering resale options on their sites for environmentally-conscious consumers or those who enjoy vintage offerings.
Conclusion
As the holiday season comes to a close, consumers will be making their final purchases, and retailers will be analyzing their sales numbers to determine the success of their marketing strategies. With online shopping on the rise and consumers looking for ways to save, the resale industry is expected to continue its growth. As buyers, it’s essential to be aware of the deals and discounts available and to make informed purchasing decisions.
FAQs
Q: What is Cyber Monday?
A: Cyber Monday is the biggest online shopping day of the year, coined by the National Retail Federation in 2005.
Q: When does the Cyber Monday sale start?
A: The sale can start as early as Saturday and run through Monday for some major retailers.
Q: How much money do consumers typically spend during Cyber Week?
A: Consumers spend approximately $76.7 billion between the beginning of November and Thanksgiving, with a total of $5.6 billion spent on Thanksgiving Day this year.
Q: How much more can we expect to spend this year compared to last year?
A: The National Retail Federation expects shoppers will spend more this year than last year, with a growth rate of 3% to 4% compared to 5.4% in 2022.
