Online spending during the 2023 holiday season hit a new record, according to a recent report from data firm Adobe Analytics.
The numbers are Released on ThursdayFrom Nov. 1 to Dec. 31, online spending on retailer websites and apps jumped nearly 5% to a record $222.1 billion, according to the report. This is an increase of 10.4 billion over the previous year, Adobe noted.
Mobile shopping also took off during last year's holiday season, surpassing desktop for the first time and accounting for 51.1% of online sales, according to the report. This is up from 47 percent in 2022 and was highest on Christmas Day.
Consumer spending was driven in part by discounts across several categories, including electronics, toys, and clothing. According to Adobe, shoppers are also increasingly using “buy now, pay later” payment methods that allow them to pay for items in small increments over time.
Online spending this season was $16.6 billion using this method, an increase of $2.1 billion from the previous season. The highest spend using the Pay Later option was on Cyber Monday, a marketing campaign that includes discounts and sales for shoppers after the Black Friday sale in stores and online.
“Amid an uncertain demand environment, retailers turned to discounts and flexible payment methods to attract shoppers this holiday season,” said Vivek Pandya, principal analyst at Adobe Digital Insights. “This strategy has been effective, driving record online spending on key days such as Cyber Monday and Black Friday, with daily spending exceeding $4 billion in 11 days this season. I achieved it.”
Adobe also found that consumer spending is driven by demand, not inflation. The company said in a report that the numbers were not adjusted for inflation, but consumer spending would have increased even more if online inflation had been taken into account.
Inflation has eased significantly since peaking at 9.1% last summer, falling to 3.2% in October. The Federal Reserve left its key interest rate unchanged for the third time at its meeting last month, claiming inflationary pressures appear to be easing, according to the Associated Press.
Adobe analyzed consumer online direct transactions from November 1st to December 31st with more than 1 trillion visits.
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