Holiday E-commerce Sales Rise 4% for Season - Update
During the 63-day holiday shopping period between November 1 and December 31, 2009, U.S. consumers spent $29.1 billion online. According to digital market research firm comScore, this marked a 4% increase from $27.9 billion U.S. consumers spent online during the equivalent period in 2008.
By comparison, e-commerce sales fell 3% during the 2008 holiday season. According to comScore, online sales growth this year was driven by a late-season spending splurge, as well as a positive start as a result of early retailer promotions and a strong finish helped by the snowstorms that occurred the weekend of December 19-20, 2009, retailers’ willingness to offer free shipping later in the season, and consumers’ confidence in expedited shipping arriving in time.
comScore said 2009 holiday e-commerce sales grew slightly better than originally forecast, which may be a sign of continued positive e-commerce sales performance into 2010. However, comScore also said consumers’ spending power remains constrained by high unemployment levels, substantial debt and a new-found desire to save.
Let It Snow
The final shopping weekend of the season, December 19-20, 2009, featured a strong 13% growth rate as online sales rose from $677 million during the final weekend before Christmas 2008 to $767 million. Snowstorms on the eastern seaboard prompted many consumers to finish their holiday shopping from the confines of their own homes. The full week ending December 20, 2009 posted a year-over-year growth rate of 6% as it grew from $4.5 billion to a one-week sales record of roughly $4.8 billion in online spending.
Green Monday Brings the Blues
comScore research indicates e-commerce spending decreased 1% on “Green Monday,” December 14, 2009. Green Monday is a recent term for the second Monday in December, which some experts now say usually features the heaviest single-day e-commerce sales of the year, as opposed to the traditional single-day e-commerce sales leader “Cyber Monday,” the Monday following Thanksgiving.
However, in 2009, Green Monday e-commerce sales dropped from $859 million to $854 million. In comparison, Cyber Monday sales (November 30) rose 5%, from $834 million to $887 million. Interestingly, Tuesday, December 15, 2009 set an all-time single-day record for e-commerce sales with $913 million, a 21% jump from $754 million on the equivalent Tuesday in 2008. Monday, November 30, 2009 and Tuesday, December 9, 2008 previously tied to hold that record.
Consumers Like Free Shipping and Late Deals
Each day from Monday, December 14 through Thursday December 17 - the last day that many online retailers would guarantee free shipping in time for Christmas - saw at least $800 million in spending, which suggests that consumers may have been waiting for last-minute deals. During each week since November 1, 2009, at least 45% of all transactions have included free shipping, outpacing each corresponding week in 2008. The peak occurred during the week ending December 6, 2009, with 50% of all transactions including free shipping.
For the week ending November 29, 2009, the average order value for transactions including free shipping was $124, 11.7% higher than the $111 average order value for those without free shipping. For the week ending December 6, 2009, the average order value for transactions including free shipping was $134, 30% higher than the $103 average order value for those without free shipping. This suggests that free shipping offers can be used creatively by retailers to incentivize consumers to spend more per order.
Most Traditional Sales Days Do Well
In addition to Cyber Monday, two other traditionally heavy online shopping days demonstrated significant improvement in 2009. Thanksgiving Day sales (November 26) rose 10%, from $288 million to $318 million, while Black Friday sales (November 27) rose 11%, from $534 million to $595 million.
Research from other third-party sources also shows that both Black Friday and Cyber Monday posted impressive online sales results this year.
Other Forecasts Predict Strong ’09 Holiday E-commerce Sales
Several recent pieces of research suggest e-commerce will prove to be a bright spot for holiday sales in 2009. According to the November 2009 American Express Spending and Saving Tracker, the internet looked to be a popular resource for holiday shoppers in 2009. Seventy-nine percent of overall respondents planned to use the internet as a tool for holiday shopping, 45% planned to purchase items online, 28% planned to use the internet to buy hard-to-find items, 27% planned to use the internet for product research, and 25% planned to go online for gift ideas.
The 2009 Holiday Forecast from comparison shopping site PriceGrabber.com corroborates these findings. PriceGrabber’s research indicates 70% of consumers planned to save money by performing research and comparison shopping online this year, compared to 38% last year. And according to the Deloitte 24th Annual Holiday Survey, 19% of consumers planned to access the internet via their mobile phones while shopping to find store locations, obtain coupons and sales information, as well as research products and prices. This percentage rose to 39% in the 18 to 29 age group.
