Despite economic uncertainties, the 2024 holiday shopping season has shattered previous records, fueled by deep discounts, innovative payment solutions, and a surge in mobile shopping.
Figure: E-commerce Sales Across the Cyber 5 ($ billions)
Source: Digital Commerce 360, Adobe Analytics
Adobe Analytics data revealed that Cyber 5 generated an astounding $41.1 billion in online sales, an 8.2% year-over-year (YoY) increase. On Cyber Monday, sales were $13.3 billion, up 7.3% YoY, and it became the biggest online shopping day ever recorded. Black Friday became the second most popular day of the weekend, with e-commerce sales growing 10.2% YoY, up from last year, as per data from Adobe Analytics.
Figure: Discounts remained the same
Source: Adobe Analytics
According to Adobe Analytics, consumers spent $15.8 million per minute during the peak hours of 8 to 10 p.m. on Cyber Monday, with electronics, toys, and apparel among the most discounted categories. Electronics saw markdowns of 30.1%, toys 26.1%, and computers 21.5%, driving a significant portion of sales. Discounts remained relatively the same compared to past years, but overall, the sales have grown, reflecting strong consumer sentiment and robust demand. Electronics, apparel, and furniture were the major growth drivers contributing to over half of 2024’s online spending growth.
Figure: Cyber 5 Sales Reach Record Levels ($ billions)
Cyber Monday E-commerce Sales
Black Friday E-commerce Sales
Source: Digital Commerce, Adobe Analytics
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The Rise of Mobile Shopping and BNPL
Mobile devices were a significant contributor, accounting for 57% of Cyber Monday’s online sales, a 13.3% YoY increase and an all-time high, as per Adobe Analytics. This represents $7.6 billion in spending from mobile devices alone, implying customers are becoming more comfortable shopping on applications as they become more interactive and user-friendly.
The growing integration of BNPL or Buy Now Pay Later services by budget-conscious customers has contributed $991.2 million in Cyber Monday sales, a 5.5% YoY increase. Sales through BNPL increased to 7% of the e-commerce sales in 2024, compared to only 2% in 2023. Payment vendors like Splitit reported 62% increased order volumes during Cyber 5 from last year. The ability to spend payments over the months without any additional interest cost attracted shoppers to avail themselves of this service, as reflected in the increase in Splitit's average order value from $650 in 2023 to $800 this year.
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Additionally, generative AI chatbots significantly impacted online shopping. These bots helped shoppers find deals and products more efficiently, reshaping the digital shopping experience. Social media influencers emerged as key drivers of consumer behavior. Influencer-driven marketing contributed 20.3% of revenue on Cyber Monday, a 6.8% YoY increase, as per Adobe Analytics.
Spike in Internet Traffic
During Cyber 5 2024, US internet traffic soared to unprecedented levels, driven by heightened online shopping activity. Cyber Monday led the surge with a 12% rise in traffic compared to the previous week and a staggering 57% growth from Cyber Monday 2023. Sunday and Black Friday followed closely, adding to the busiest days for internet traffic. Arizona, West Virginia, and Arkansas experienced an increase in traffic of over 20% relative to the prior week. While consumer activity peaked, the rise in internet usage also attracted significant cyber threats, prompting a heightened focus on online security throughout this high-traffic period.
Figure: Daily HTTP request in the US, compared to 7 days prior
Source: Cloudflare
Offline Retail Holds Strong
As per the annual survey by the National Retail Federation (NRF), an estimated 197 million people shopped during Cyber 5, making it the holiday season with the second-highest number of shoppers. Offline shopping made a notable comeback, with nearly 126 million customers shopping through physical stores during Cyber Week, indicating 4.6 million more offline shoppers compared to 2023. This figure surpassed the number of online customers, which has declined from 134.2 million in 2023 to 124.3 million this year. This indicates a change in consumers' preference this year towards offline buying channels. The top shopping destination during the Cyber 5 was department stores.
Figure: Thanksgiving weekend shoppers over the years
Source: NRF 2024 Weekend Consumer Survey, conducted by Proper Insights & Analytics
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The Road Ahead
According to Adobe Analytics, the holiday season will generate $240.8 billion in online sales, an 8.4% YoY increase. With inflationary pressures easing and strong discounts continuing, consumers will likely sustain their spending patterns through December. Cyber Week 2024 has solidified its status as a cornerstone of the retail calendar. By embracing technology, offering flexible payment options, and delivering exceptional discounts, retailers have successfully navigated economic uncertainties and delivered another record-breaking season.
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