Record-Breaking Online Holiday Shopping Season: What it Means for Businesses
The 2022 holiday season saw a record-breaking $220.1 billion in online consumer spending, a 5% increase from the previous year. This growth was measured by Adobe Analytics, which tracked over one trillion visits to U.S. retail sites. This all-time high was largely driven by major discounts offered by retailers and the rise of Buy Now Pay Later transactions.
What's even more significant is that, for the first time ever, mobile shopping surpassed desktop sales, accounting for over 50% of total sales. This shift towards mobile highlights the increasing importance of having a strong mobile presence for businesses.
Why Businesses Should Pay Attention
Despite potential economic concerns, such as rising gas prices and cost of living, consumers were still willing to spend during the holiday season. This indicates a strong and stable economy, with consumers feeling confident and willing to loosen their purse strings.
It's also important to note that the increase in online spending may be due to traditional offline transactions moving online. This could be attributed to the lockdown restrictions during the pandemic, where consumers were forced to purchase goods and services online. This trend is likely to continue, with the recent surge in online grocery spending (over $19 billion) being a prime example.
Utilizing AI for Holiday Shopping
One interesting aspect to consider is the potential impact of AI on holiday shopping. With the rise of AI-powered shopping assistants and recommendation engines, consumers are increasingly turning to technology for their holiday purchases. Businesses that incorporate AI into their marketing strategies may see a boost in sales and customer satisfaction during the holiday season.
Top Categories and Discounts
According to Adobe's data, electronics dominated the holiday season with discounts of over 30% of the list price. Toys and apparel were not far behind, with as much as 65% of total spending being driven by these three categories, as well as furniture and groceries.
The Most Effective Channels for Sales
Paid search continues to be the biggest driver of sales for retailers, accounting for 29.4% of online sales. This was followed by web traffic (19.3%), affiliate and partner sales (16.6%), organic search (15.9%), and email (15.3%). Businesses should take note of the effectiveness of these channels and incorporate them into their marketing strategies to drive sales during the holiday season.
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Originally reported by Martech: https://martech.org/221-billion-adds-up-to-a-record-online-holiday-season/
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