Discount shoppers are anticipated to spend a record $12 billion to $12.4 billion on toys, clothes, electronics, and beauty items on Cyber Monday, November 27, after a hectic Christmas shopping weekend.
According to Reuters, Adobe Analytics predicts that heavy internet traffic and transactions might lead to a 5.4% increase in purchases by consumers in the United States. As a result of increased discounts provided by stores in the days leading up to Cyber Monday, customers spent an estimated $10.3 billion during the weekend.
Products are seen on a conveyor belt at an Amazon fulfillment center where they are being sorted and shipped out as same day orders during Cyber Monday at the Same-Day Delivery Facility Fulfillment Center on November 27, 2023 in Tampa, Florida.
Pattern of Substantial Price Cuts
Discounts of up to 30% on electronics and 19% on furniture were advertised by stores. "We are seeing very strong discounts," said Vivek Pandya, lead analyst at Adobe Digital Insights, which monitors data for e-commerce platforms.
There has been a notable uptick in the use of the "Buy Now, Pay Later" option among consumers. On Cyber Monday, the use of this payment arrangement is expected to reach an all-time high, contributing roughly 19% more to online spending, totaling $782 million, as forecasted by Adobe.
Apparently, retailers began offering deeper discounts on goods on the weekend before Cyber Monday.
Amazon, a frontrunner this holiday season, started advertising its Cyber Monday Deals as early as Saturday, November 25. These deals include discounts of up to 46% on select Instant Pot cooking appliances, 37% on some Vitamix blenders, and 35% on Amazon products, including a 55-inch Amazon Fire TV.
In an effort to increase its market share, Walmart began offering early holiday discounts on Sunday night, November 26, following the lead of other large retailers.
See Also: This Year's US Black Friday Online Sales Surge by 7.5% to Staggering $9.8 Billion
Increased Digital Marketing by Retailers
Salesforce found that this year, shops increased their usage of digital marketing by 56%, with an emphasis on push notifications, SMS messaging, and video streaming advertisements to reach consumers.
Adobe predicts that mobile devices will account for more than half of Cyber Monday's online sales, and the company claims to have access to transaction data from 85 of the top 100 online merchants. It projected that for the first time ever, mobile phone sales will surpass those made on desktop computers during the Christmas shopping season.
Spending by frantic consumers on Monday evening might reach $4 billion, Pandya said. He added that he would keep an eye out on Monday to see whether Christmas buyers continued their "downshifting to cheaper goods" trend from earlier this year.
"Because people are getting gifts for other people, they seem to stretch a little more, and splurge," he told Reuters, adding that shops' big discounts may make it easier for them to avoid substituting cheaper items.
It is anticipated that retailers like TJ Maxx, Ross, Walmart, and Costco would be "holiday winners" due to the increasing demand for inexpensive goods over the Christmas season.
See Also: Black Friday in the 2020s Significantly Transformed by Online Stores, Business Analysts Say
