Adobe Predicts Online Spending to Increase 33% in 2020 Over 2019
The first set of holiday data and analytics from Adobe reveals online spending is set to increase by 33% in 2020 over 2019. In great part, the global pandemic is responsible for more consumers shopping online and businesses increasing their online presence.
The Adobe Analytics data also reveals consumers spent $58.9 billion online from 11/1—11/23. According to the data, this is an unprecedented 32% Year on Year (YoY) growth as people stay home and cut back on in-store shopping.
Adobe Predicts 33% Increase in Online Spending
The growth also takes into account the slowdown in online shopping during Election Day. Despite the election, shoppers made up the gap with the last 3 days growing at 49% YoY. The result is a dramatic shift in how consumers are shopping.
The Shift in Shopping
Another data point from the report is an increase of 560% in the last 7 days for online grocery orders for Thanksgiving. This is over daily avg in October. The growth is incredible compared to last year when it was only 10%.
Adobe is pointing out Cyber Week is now Cyber Month as more retailers offer discounts all month long. On Sunday 11/22, discounts started in earnest for a range of consumer electronics. This includes discounts for computers with savings of 27.8%, appliances (17.3%), toys (17%), and electronics categories (23.6%). The discounts are much deeper this year unlike in 2019 when on the weekend before Thanksgiving, computers were discounted by 15% and toys at 7%.
When it comes to travel, consumers are more optimistic as Pfizer and Moderna have COVID-19 vaccines in the pipeline. Bookings for 2021 travel is seeing a 35% YoY growth. This is compared to the 11% growth in the 9-day period before 11/9.
Adobe Analytics also reveals:
- Shipping: There is a 67% YoY fast shipping growth, and for standard shipping, it is up 61% YoY. Curbside and in-store pickup is also up by 115% YoY.
- Large and Small Retailers: In the early Cyber Week start large retailers saw over 136% boost in revenue. This is over the last 3 days vs the October baseline. For SMB retailers the growth is a significant 117% boost over the same period.
- A Look Ahead: Adobe is forecasting the full season from November to December is going to be $189 billion. This is online spending representing 33% growth YoY. Adobe says Thanksgiving will hit $6 billion (42.3% growth YoY), Black Friday $10.3 billion (39.2%) and Cyber Monday $12.7 billion (35.3%).
The survey was carried out with the participation of over 1,000 U.S. consumers. Additionally, Adobe Analytics analyzed one trillion visits to U.S. retail sites, 100 million SKUs and 80 of the 100 largest retailers in the U.S.