Dive Brief:
- Shoppers spent a record-breaking $211.7 billion on e-commerce between Nov. 1 and Dec. 31, a 3.5% bump from 2021, according to Adobe. During Cyber Week (the five days between Thanksgiving and Cyber Monday), shoppers spent $35.5 billion online.
- Online toy sales saw the greatest increase compared to October 2022 at 206%, followed by video games (115%) and apparel and accessories (94%). Watches also saw a sharp increase at 108%, followed by baby toys (101%), gift cards (98%), cosmetics (90%) and outdoor grills (86%).
- Across major e-commerce categories, discounts hit record highs this holiday season. Retailers discounted toys the most at 34%, followed by electronics (25%), per the report.
Dive Insight:
Higher prices and greater consumer demand fueled the spike and e-commerce sales, Adobe noted in its report. The company did not factor inflation into its sales growth figures, but stated there would still be underlying consumer demand growth if it had done so.
“At a time when consumers were dealing with elevated prices in areas such as food, gas, and rent, holiday discounts were strong enough to sustain discretionary spending through the entire season,” Vivek Pandya, lead analyst at Adobe Digital Insights, said in a statement. “The big deals drew in consumers and drove volume, helping retailers who were challenged with oversupply issues, particularly in categories such as apparel, electronics, and toys.”
During the 2022 holiday season, Adobe found that while buy now, pay later orders saw a 4% bump year over year, revenue from those purchases dipped by 2%. Adobe attributed that decline to shoppers using installment payment platforms for smaller purchases.
Nearly half of online sales came via smartphones this year. Christmas Day set a new mobile shipping record, driving the majority (61%) of online sales.
Leading up to the 2022 holiday season, shoppers increased their online shopping, a previous Adobe report found. In October, consumers spent $72.2 billion in e-commerce transactions, up 10.9% from September 2022 but about the same as the $72.4 billion they spent in October 2021. Home decor and outerwear sales increased exponentially by $189% and $142%, respectively, Adobe found.
