Adobe reported that Cyber Monday hit a new record as the largest U.S. online sales day in history, with $6.59 billion in sales, up 16.8% from $5.6 billion in 2016.
According to Adobe, Black Friday and Thanksgiving Day brought in $5.03 billion and $2.87 billion, respectively. The holiday shopping season so far has totaled $50 billion in online revenue, again a 16.8% increase and more than $1 billion per day. Adobe is predicting this will be the first-ever holiday season to break $100 billion in online sales.
“This past Cyber Monday, the behavior of shopping your work computer during the day is almost completely reversed,” said Taylor Schreiner, Director of Adobe Digital Insights. “This year, mobile shopping was dominant both in the morning and afternoon, and desktop only staged a comeback in the evening when people were home.”
Web traffic to retail sites increased by 11.9% on Cyber Monday, nearly double the holiday season average to date (5.7%). Mobile set a new record with its first $2 billion sales day. Smartphones accounted for 37.6% of retail visits and 21.3% of revenue, Adobe said, while tablets were used more as entertainment. Gaming devices accounted for 8.2% of retail visits and 9.1% of revenue on Cyber Monday.
The average mobile conversion rate was 12% higher compared to Cyber Monday 2016. Average order value was $133, up just 0.1% from last year. Apple iOS led with an average order value of $123, compared to $110 for Google’s Android.
The average conversion rate on smartphones for Cyber Monday was 3.5%, according to Adobe, up 10.1% from 2016. For tablets, the conversion rate was 6.4%, up 8% from last year; desktop conversion rates hit 7.1%, up 7.6% year-over-year.
Search was again the top promotion driver, accounting for 42.6% of online sales for Cyber Monday (23.3% for paid search, 19.3% for organic search). Direct traffic and email drove 25.5% and 24% of sales, respectively.
“Shopping and buying on smartphones is becoming the new norm and can be attributed to continued optimizations in the retail experience on mobile devices and platforms,” said Mickey Mericle, Vice President, Marketing and Customer Insights at Adobe.
Gina Ashe, CEO of ThirdChannel, said despite retailers’ optimistic comments over the weekend about online success and steady in-store traffic, doubts remain about brick-and-mortar performance through the rest of the holiday shopping season.
“The vast majority visit stores only after researching products and gifts ahead of time, so they expect staff to tell them something they don’t know about a product, or give them an immersive demo or experience that can’t be replicated online,” Ashe said.
She added if brands don’t prepare staffing, displays and inventory to demonstrate that value when shoppers hit their store, they’re bound to lose interest.
Sucharita Mulpuru-Kodali, Vice President and Principal Analyst for Forrester Research, said Cyber Weekend was extraordinary for online retailers. Sales growth from Thanksgiving through Sunday topped Forrester’s average holiday growth estimate of 12%. “The five days from last Thursday through Cyber Monday should be 14% of the total holiday spend,” Mulpuru-Kodali said.
The good news, she said, is that consumer confidence is high and retailers have been aggressive with site-wide or category-wide discounts, encouraging shoppers to open their wallets.
“One point to note is that all of the data points around mobile transactions suggest that mobile shopping growth may be peaking,” said Mulpuru-Kodali. “About one-third of transactions are happening on mobile devices including tablets and that is about the same number as last year.”
She said hopefully retailers haven’t forgotten the importance of the desktop experience which still matters for a lot of shoppers and has higher conversion rates in general.
According to the National Retail Federation, 175 million Americans shopped in stores and online during Cyber Weekend, besting its earlier estimate of 164 million, with 96% of them making purchases. The average spending per person was $335.47, with 75% of it going toward gifts. The biggest spenders were older…