Strong Surge in US Online Retail Hits $222.1 Billion Amid Economic Challenges
In the face of a challenging economic landscape, U.S. online retail has experienced a robust upswing, with consumers driving positive spending growth during the 2023 holiday season. According to data from Adobe Analytics, the industry recorded an impressive $222.1 billion in total, showcasing a year-on-year growth of 4.9%. This data, analyzing over one trillion visits to domestic retail sites, 100 million stock-keeping units (SKUs), and 18 product categories, offers valuable insights into the dynamics of U.S. e-commerce.
Consumer spending was buoyed by significant discounts in key categories like electronics, toys, and apparel, along with the increased adoption of the Buy Now, Pay Later (BNPL) payment method. BNPL payments saw record-breaking growth, reaching $16.6 billion during the holiday season. Notably, mobile shopping surpassed desktop for the first time, accounting for 51.1% of online sales, reflecting evolving consumer preferences.
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November saw a total online spend of $123.5 billion, marking a 6% YoY increase. Cyber Week, the period between Thanksgiving and Cyber Monday, contributed significantly, generating $38 billion in online spending—a YoY increase of 7.8%. December continued the positive trend with online consumers spending $98.6 billion, a 3.7% YoY rise, partially fueled by extended discounts beyond Cyber Monday.
Discounts reached new heights across various e-commerce categories during this holiday season, with electronics, toys, and apparel offering significant deals. BNPL services played a pivotal role in this season’s spending, contributing $16.6 billion, marking a notable 14% YoY increase.
Vivek Pandya, Lead Analyst at Adobe Digital Insights, highlighted the success of retailers leveraging discounts and flexible payment methods to attract shoppers in an uncertain demand environment. The strategy led to record-breaking online spending on key shopping days, with 11 days surpassing $4 billion in daily spending.
Electronics, apparel, furniture, groceries, and toys collectively accounted for 65% of the $222.1 billion in online spending. Top-selling items included TVs, smart speakers, pyjamas, sneakers, and popular toys like Barbie products and Disney Little People.
Additionally, mobile shopping’s dominance, curbside pickup’s sustained popularity (18.4% of online orders), and paid search remaining the top driver of sales (29.4% of online sales) underscore the evolving trends in U.S. online retail.