Economy Watch: Online Sales to See Holiday Season Spike
- Nov 07, 2017
Online sales will total $107.4 billion this holiday season, an increase of 13.8 percent from last year, while in-store retail is expected to grow 10 percent during the holidays, according to Adobe, which released a report Nov. 6. Cyber Monday is expected to become the largest online shopping day in history, generating $6.6 billion in sales, or 16.5 percent growth compared to last year.
Sales on Thanksgiving Day are expected to increase 15 percent year-over-year to $2.8 billion, Adobe said. Moreover, one out of every $6 this holiday season will be spent between Thanksgiving and Cyber Monday, amounting to $19.7 billion in sales. The most anticipated gifts include Hasbro NERF guns, Nintendo Switch, Apple Air Pods and Sony PlayStation VR.
While large retailers (more than $100 million in annual revenue) will see higher order values and desktop conversion rates than smaller retailers (less than $10 million in annual revenue), the latter are expected to have the mobile advantage, with a higher average conversion rate of 1.9 percent by attracting more shoppers with an intent to buy.
Adobe also forecasts that shoppers will gravitate towards purchasing more lower-priced items online as opposed to big-ticket items. While toys and apparel saw a 39 percent and 20 percent growth, respectively, last holiday season, jewelry sales came in low, with a 3 percent decline. These trends are expected to continue this season, the company predicted.