Record Online Sales Expected This Holiday Season
The holiday season is quickly approaching as Christmas is now less than 50 days away. As Covid-19 continues to affect everyday life, online shopping is anticipated to post a record year.
Adobe Analytics predicts this year's holiday shopping season will rake in $189 billion in online sales and with it "shattering all previous records." Adobe is forecasting a 33% year-over-year growth in sales, which would be equal two years' worth of growth in one season.
Adobe expects the shopping days between Thanksgiving Day and Cyber Monday known as Cyber Week to be replaced by "Cyber Months" in November and December. Adobe still expects Cyber Monday to be the biggest online sales day of the year with an estimated $12.7 billion in sales, followed by Black Friday with $10 billion in sales.
"As retailers adapt to consumers' new behaviors in this pandemic, we expect earlier discounts, more shipping and pick-up options and uncertainty around in-store purchases to drive this year's online holiday sales to record highs," Adobe head of Marketing and Customer Insights John Copeland said. "This year is unlike any in the past, and for the first time we are no longer referring to peak holiday sales as Cyber Week - it's now Cyber Month."
Adobe is projecting a remarkable $2 billion in online sales per day from November 1-21 before jumping to $3 billion per day from November 22-December 3. Adobe believes 42% of all online sales will be done on smartphones, marking a 55% increase from last year.
With people worried about venturing out in public amid the coronavirus, BOPIS (buy online, pick up in store), is expected to grow by more than 40% year-over year. Shoppers will be looking for free shipping as 64% of consumers say they will not pay for expedited shipping this year.
"The holiday shopping season is starting earlier than ever this year, and we expect record online sales as many consumers opt to shop online to avoid stores because of the unknown around Covid-19," Copeland said.
For the time being, though, some consumers are sitting on their hands as the U.S. election unfolds. Adobe found that 26% of consumers said the outcome of the election will affect how much they spend on holiday shopping.
"Previous election cycles have shown that online growth tends to drop most notably on the day after the election," Adobe Digital Insights director Taylor Schreiner said. "Once a clearer picture emerges in the coming days, we expect to see holiday shopping pick back up shortly after."
With less than 50 days until Christmas, online retailers are gearing up for what's expected to be a record breaking shopping season.
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