E-commerce Sales Jump
E-commerce Sales Jump
If nothing else, 2020 has been a year of change and uncertainty. The ongoing global situation has necessitated the shift to online sales for many businesses to simply survive, while other businesses have prospered through their efforts in e-commerce.
October saw e-commerce sales jump to $4.1 billion due to changing shopping habits. Over the past several months, consumers have had to adapt to the inability to shop at stores they used to frequent. Taking their business online has benefited several businesses who found their customer base expanding, but will this continue through the end of the year?
With the holiday season upon us, retailers are hoping to recoup their losses and end the year on a high note, but continued uncertainty about the COVID-19 pandemic has left many consumers reticent about spending.
According to a recent poll, consumers have expressed concern about their holiday shopping, with 25% saying the are unsure of their ability to afford the gifts on their list and 30% stating that they plan to spend less on gifts this year.
Despite these concerns, however, online sales for November and December are expected to increase dramatically. It is expected that as much as two years’ worth of e-commerce growth will occur during this holiday season, with consumers turning to online shopping to avoid potential crowds in stores.
Upon reviewing the online transactions of 80 of the top100 US internet retailers, Adobe Analytics predicted that November and December would see online sales jump 33% year over year, reaching a record $189 billion. Should consumers receive further stimulus cheques, or in the event of stores being forced to close again, these numbers could rise even higher, with Adobe estimating that holiday spending might even surpass $200 million.
In 2019, outside of the period between Thanksgiving and Cyber Monday, there were only 3 days in which digital spending surpassed $3 billion in a 24-hour window. By comparison, it is expected that there will be 18 such days between November 1st to November 21st, driven by the desire for popular toys and hot new video game consoles. Adobe further stated that in the US, consumers would likely spend $28.1 billion more using their smartphones than they did last year, representing a 55% year-over-year growth for mobile devices.
Traditionally, Black Friday has been a day of peak shopping, with consumers lined up for hours followed by a mad dash through the store for a shot at tremendous deals not available at any other time of year. With the ongoing pandemic, however, it is expected that consumers will do their bargain hunting online.
Although many consumers may be hesitant to spend, considering their uncertainty over the ongoing pandemic, it seems likely that many more will continue to adapt by turning to online shopping for the holiday season and beyond.
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