Black Friday and Thanksgiving orders are likely to exceed the same two days last year. This increase is largely attributed to mobile shopping and discounts.
Previously, online retail was focused on Cyber Monday, but now, mobile sales are spread throughout the year. People are finding it much easier to shop using their mobile devices.
Because of this change in consumer behavior, both retailers and delivery companies have been preparing for the earlier deliveries. What this means is that tons of online orders will be on their way to UPS and FedEx this weekend.
On Black Friday, online sales soared. Among e-commerce sites, Amazon provided the biggest discounts. Amazon has set the bar for the biggest shopping day of the year for brick-and-mortar stores.
Online Sales Hit An All-Time High
According to analysts, more and more consumers are shopping in both brick-and-mortar stores and online. While there has been an increase with in-store shoppers, it has not compared to the increase in online shopping.
As a matter of fact, retail giant Macy’s almost had their website crashed by eager shoppers. This actually happened three different times.
As of 1pm EST on Friday, online sales hit over $1 billion. On Thanksgiving, it reached $1.13 billion, which is 14% higher than last year.
The National Retail Federation expects total sales for this holiday season to be 3.6% higher than last year. This would mean that they expect sales to rise to $655.8 billion. Most of this increase is due to online shopping.
This weekend’s record shopping numbers may be an indicator of faster growth in the economy this year. Retail sales rose 0.8% in October.
The Reason Sales Are Surging? Confidence and Discounts
Consumer confidence has increased in large part due to the US having the lowest unemployment rate in eight years. The hourly wage increase of 2.8% has also contributed to the growth in consumer confidence. This good news has encouraged consumers to buy more.
When it comes to discounts, Amazon was the clear leader. According to Clavis Insight, their average discount was 42% off their products. Walmart had an average of 33%. Target was at 35% while Best Buy’s average discount was 36%.
Amazon, Target, and Wal-Mart have all stated that their online sales were the best ever during Thanksgiving. If this trend continues, consumer traffic would be up to 20% higher than Black Friday a year ago although foot traffic at brick-and-mortar locations is likely to fall about 3% to 4%.
It’s clear that online shopping continues to increase. Since it’s become so much easier to order products online, more and more shoppers are using their phones to do their Christmas shopping. While this is a great sign for the economy, time will tell what happens in the New Year.