Black Friday’s online sales beat estimates as shoppers moved online for the shopping holiday, with mobile devices driving more purchases than ever, according to Adobe Digital Insights.
In addition, this year’s online sales shattered 2015’s record as the convenience of mobile likely spurred more shoppers to make purchases remotely, rather than navigating crowded brick-and-mortar locations.
Black Friday drove more shoppers online than ever.
- Total online sales smashed expectations: Online orders on Black Friday grew nearly 22% year-over-year (YoY), totaling $3.34 billion in sales, reports Adobe. This year was predicted to bring in $3.05 billion in sales, marking just over 11% YoY growth. Total online sales growth also far outpaced the 14% YoY gain posted in 2015.
- Shoppers were driven by mobile: Mobile accounted for 36% of total online sales, translating to $1.2 billion, and marking the first day ever in the US on which mobile sales exceeded $1 billion. Moreover, mobile accounted for the majority of e-commerce traffic, making up 55% of total site visits on Black Friday.
- Retailers were better prepared: During Black Friday, the rate of “out of stock” items online reached 10.5%, which is down from 12% last year. This is likely because retailers invested heavily in online inventory and warehousing in order to remove friction from the US’ biggest shopping day of the year.
Legacies are increasingly at risk of losing out on holiday sales as the retail market moves online. Traditional retailers, like Macy’s, Walmart, etc., still rely on their physical store locations for much of their revenue, but store performance is struggling as consumers shift online. Looking ahead to next year, omnichannel fulfillment options like click and collect or ship-from-store can help these retailers maximize the use of their brick-and-mortar locations over the holidays, as consumers increasingly rely on digital devices to shop. Moreover, leveraging the physical store for flexible fulfillment options like click and collect can be a boon for these retailers over the holidays when potential weather disruptions could impact home delivery.
E-commerce has been on the rise in the last several years. E-commerce will truly become the future of retail, as nearly all of the growth in the retail sector now takes place in the digital space.
Business Insider’s premium research service, forecasts that U.S. consumers will spend $385 billion online in 2016. Moreover, it is believed number will grow to $632 billion in 2020.
This is hardly surprising considering e-commerce’s healthy growth. Though the U.S. retail average growth rate in the first half of 2016 was just 2% for total retail, it was 16% for e-commerce.
The number of online shoppers has grown by nearly 20 million from 2015 to 2016. And these 224 million shoppers are spending more, as the total amount spent online grew from $61 billion in the first quarter of 2015 to $68 billion in Q1 2016. Finally, these customers are transacting more frequently, as the number of online transactions has risen by 115 million from 2015 to 2016.
But all of this shopping online creates its own set of challenges, both for consumers and the companies that are trying to get their products onto shoppers’ screens and into their shopping carts. In short, you need a plan. Hence we suggest to use ShipGooder, as the ShipGooder Rate Engine offers time and money savings for everyone!
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