Dive Brief:
- Setting a “new record for e-commerce,” online consumer spending between Nov. 1 and Dec. 31 rose 4.9% year over year to $222.1 billion, according to analysis from Adobe Analytics.
- Consumer spending was driven in part by discounts that “hit record highs” during the season across categories including electronics, toys and apparel.
- Consumers spent $16.6 billion online using buy now, pay later services over the holiday season, a 14% jump from last year and an all-time high, per Adobe Analytics. Throughout 2023, consumers spent $75 billion online via BNPL payment platforms, up 14.3% from 2022.
Dive Insight:
Adobe’s online holiday shopping projection was nearly spot on. In its October forecast for the 2023 holiday sales figures, Adobe Analytics predicted that e-commerce sales between Nov. 1 and Dec. 31 would reach $221.8 billion, a 4.8% increase compared to 2022.
Online consumer spending increased 6% year over year in November to $123.5 billion, driven in large part by the $38 billion spent online between Thanksgiving and Cyber Monday. The following month, shoppers drove a 3.7% year-over-year bump in online spending to $98.6 billion, according to Adobe.
While the overall holiday season drove growth in buy now, pay later sales, Adobe found that Cyber Monday BNPL purchases spiked 42.5% from last year to $940 million, marking the biggest day on record for BNPL purchases. Throughout November, buy now, pay later transactions increased 17.5% from 2022 to $9.2 billion, making it the biggest month on record for the payment method.
The rise in 2023 BNPL sales signals a continuing trend of consumers turning to the installment payment method to finance their holiday purchases.
“In an uncertain demand environment, retailers leaned on discounting and flexible payment methods to entice shoppers this holiday season,” Vivek Pandya, lead analyst at Adobe Digital Insights, said in a statement. “The strategy was effective, driving record spend online during big days like Cyber Monday and Black Friday, and a record 11 days that surpassed $4 billion in daily spend this season.”
With more consumers turning to installment payment plans to fund their holiday shopping, BNPL providers have seen a boost in orders. Klarna said that U.S. shoppers placed 29.5% more orders on Black Friday this year compared to last year.
Adobe also accurately forecast the rise in mobile shopping during this year’s holiday season. More than half (51.1%) of online shoppers transacted via smartphones this holiday season, an increase from 47% a year ago. Consumers spent the most via mobile on Christmas Day, driving 63% of online sales, Adobe found.
