E–commerce is one of the fastest growing industries in the world, and this year it seems more determined than ever to eclipse traditional commerce.
The Holiday Season started with a bang this time around: If a few years back, people would build up their expectations regarding Black Friday and would keep holding on to their pockets until the massive advertised sales would go off, this year people started emptying their pockets at Thanksgiving itself.
According to Adobe Data, Thanksgiving sales hit a record 2.87 billion dollars, an 18.3% increase compared to last year’s 1.93 billion dollars sales. This is a tremendous surge, considering Thanksgiving is only the start of the season, and we’re yet to see the big numbers on Black Friday and Christmas. This massive spike in spending also reveals a deeper, stronger consumer confidence regarding online commerce and an increased willingness to spend money outside of traditional retail.
Adobe predicts that during the Holiday Season (from Nov 1st to January 1st), online sales revenues will get to 107 billion dollars, a more than 10 billion dollars increase from the $94.4B in 2016. So far, between Nov 1 and Nov 24, we’re at 38.31 billion dollars.
Another important factor to take into consideration when analyzing the data is the device people purchase from. We’ve been talking for a long time about the importance of being mobile and mobile oriented. Now we even have this year’s sales data to support this claim.
Even if the wide majority of purchasing decisions are still made in front of a desktop computer, the smartphone conversion is on a undeniable increasing trend. Even so, despite smartphones driving almost the same traffic as desktop (45%, compared to 46%), people are still more reluctant to buy from their small screen.
The decision to purchase is more than likely made in front of the smartphone, but the actual process of placing an order takes place in front of desktop computer. Nevertheless, the numbers are confirming the increase in conversion rate for mobile platforms: 26% of all purchases are made via smartphone, while 63% are made from a desktop.
“Thanksgiving is shaping up to be a record-breaking shopping day. Conversion rates across the board are seeing double digit growth, and we’ll see that continue throughout the week as we expect Black Friday and Cyber Monday to pull in the most spend,” said Mickey Mericle, vice president, Marketing and Customer Insights at Adobe, according to TechCrunch.
It’s important to note that the amazing increase in online sales is reshaping industries worldwide. The results e-commerce retailers got this week skyrocketed their stock valuation. For example, Amazon shares went up by 2.58% to a staggering 1,186.00 USD/share, enabling its founder, Jeff Bezos, to break the 100 billion dollars net worth milestone.