Cyber Monday: Shoppers Scour the Internet for Online Deals
Consumers Keep the Momentum Going on the Final Day of the Five-Day Shopping Bonanza
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 their Cyber Monday Sales
For several major retailers, the "Cyber Monday" sale is a days-long event that begins over the weekend. Amazon, 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 and the Holiday Season
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.
The Impact of Inflation and Credit Card Debt
However, 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’s Expectations
The National Retail Federation expects shoppers will spend more this year than last year. However, 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.
Adobe Analytics’ Insights
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.
Retailers’ Strategies
Retailers began offering holiday deals in October this year, continuing a trend that started during the COVID-19 pandemic and has been resurrected due to supply chain clogs or inflation woes. Rob Garf, vice president and general manager of retail at Salesforce, said some of the earlier deals retailers offered were fairly conservative. That changed on Black Friday, when the discount rate began to peak at 30% in the U.S., he said.
The Resale Industry’s Rise
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 shoppers continue to scour the internet for online deals on Cyber Monday, it’s clear that the holiday season will be a complex and nuanced one. With inflation, credit card debt, and the rise of the resale industry all playing a role, it will be interesting to see how shoppers respond and what the season’s overall spending trends will be.
FAQs
Q: What is Cyber Monday and why is it significant?
A: Cyber Monday is a major online shopping day that takes place on the Monday after Thanksgiving in the United States. It’s significant because it’s one of the biggest online shopping days of the year and a major driver of holiday sales.
Q: What are some of the hottest categories for discounts during Cyber Monday?
A: According to Salesforce, healthy and beauty, footwear, and active apparel are expected to be the hottest categories for discounts during Cyber Monday.
Q: How much will consumers spend during the holiday season?
A: The National Retail Federation expects consumers to spend more this year than last year, but the pace of spending will slow, growing 3% to 4% compared to 5.4% in 2022.
