Adobe Analytics — As early holiday discounts kick in, consumers spent more than $72 billion online (October 2022)

Adobe Analytics

Adobe released its first set of online shopping data for the holiday season of 2022 today. Adobe Analytics, which is powered by Adobe, provides a comprehensive view of US ecommerce by analysing direct consumer transactions online. The analysis includes more than a trillion visits to US retail sites, 100 million SKUs, and 18 product categories than any other technology company or research organization.

In October 2022, consumers spent $72.2 billion online, 10.9 percent more than the previous month (September 2022). The amount spent is comparable to what consumers spent last year ($72.4 billion in October 2021), when earlier deals also contributed to an increase in early holiday shopping. Consumers have been drawn in by bargains in categories such as electronics and toys, where discounts have reached as high as 17% and 15%, respectively. Customers have also seen good deals on computers (10%), as well as more modest discounts on televisions (4%), sporting goods (3%), and furniture (3%) (2 percent). Adobe anticipates that the best deals will still be available around Cyber Week.

ADOBE ANALYTICS

Data can originate from anywhere. Adobe provides insights. "Despite inflationary pressures and rising borrowing costs, there was no material decline in early holiday shopping this year," said Taylor Schreiner, senior director, Adobe Digital Insights. "Despite a challenging macroeconomic environment, ecommerce demand has proven to be durable and resilient in October, with over $72 billion spent online."

Year to date (January 2022 - October 2022), consumers spent $727 billion, a 6.9 percent year-over-year (YoY) increase as the digital economy expands. Squishmallows, Roblox figurines, Pokémon card games, and LOL Surprise dolls were among the top selling toys online in October 2022. PlayStation 5, Xbox Series 5, Nintendo Switch, and Apple products have been among the most popular electronics and gaming devices. Air fryers, eReaders, and mini fridges are also popular.

Additional Adobe Analytics Insights include:

Increases in the category. Consumers have begun their Thanksgiving and Christmas shopping early, with sales of holiday décor increasing by 189 percent (compared to daily average sales in August 2022). And as the weather gets colder, sales of outerwear apparel are up 142 percent. Grocery shopping online is gaining popularity among consumers, with YoY growth of 27.9 percent. Adobe anticipates that this will increase as Thanksgiving approaches.

Purchase Now and Pay Later (BNPL). BNPL's revenue share increased by only 1% year on year in October 2022. And revenue share increased by only 5% year on year from January 2022 to September 2022. While the broader economic environment and a slowdown in consumer spending have had an impact on growth, BNPL is also facing challenges in demonstrating value to mass consumers.

Fulfillment. Curbside pickup accounted for 17% of orders in October 2022. (for retailers who offer the service). This was down from a 24 percent share in October 2021, when the COVID-19 pandemic compelled consumers to use fulfilment as a safe and quick way to shop. Adobe anticipates that curbside pickup usage will increase in December as customers use it to avoid shipping delays.

Methodology: The scope of this report extends from October 1 to October 31, 2022. It is based on Adobe Analytics data and analyses online commerce transactions to provide the most comprehensive view of US ecommerce. The study encompasses over 1 trillion visits to US retail websites, 100 million SKUs, and 18 product categories. Adobe Analytics is a component of Adobe Experience Cloud, which is used by more than 85 percent of the top 100 internet retailers in the United States* to deliver, measure, and personalise online shopping experiences.