Cyber Monday Sales Resulted in Smart Spending
Yesterday, while shoppers were clogging the internet with holiday transaction, reporters at CNN were waxing on about how Cyber Monday is a myth. More to the point, they said it was a marketing ploy (gasp!) and is erroneously labeled “the biggest online shopping day of the year.”
It might not turn out to be the biggest day, but retailers aren’t complaining this morning after seeing a 19.4% increase over last year. The numbers come from Coremetrics, an IBM Company’s third annual Cyber Monday Benchmark Report and here’s how it adds up.
Cyber Monday 2010 Compared to Black Friday 2010
- Consumer Spending Increases: Online sales were up 31.1 percent, with consumers pushing the average order value (AOV) up from $190.80 to $194.89 for an increase of 2.1 percent.
- Luxury Goods Continue Comeback: Jewelry retailers reported a significant jump of 60.3 percent in sales.
- Social Shopping: The growing trend of consumers using their networks on social sites for information about deals and inventory levels continued on Cyber Monday. While the percentage of visitors arriving from social network sites is fairly small relative to all online visitors—nearly 1 percent—it is gaining momentum, with Facebook dominating the space.
- Mobile Shopping: Consumers continue to use mobile as a shopping tool. On Cyber Monday, 3.9 percent of people visited a retailer’s site using a mobile device.
Cyber Monday 2010 Compared to Cyber Monday 2009 (year/year):
- Consumer Spending Increases: Online sales were up 19.4 percent, with consumers pushing the average order value (AOV) up from $180.03 to $194.89 for an increase of 8.3 percent.
- Luxury Goods Report Big Gains: Affluent shoppers opened their wallets wide, driving sales of luxury goods up 24.3 percent over 2009.
- Shopping Peaks at 9:00 am PST/Noon EST: Consumers flocked online, with shopping momentum hitting its peak at 9:00 am PST/noon EST. But consumer shopping maintained stronger momentum throughout the day than on Cyber Monday 2009.
The consumer may have been generous this year, but so were the retailers, offering not only deep discounts but free shipping on all purchases and that added up to big savings.
Not only was spending up, but Google says there was a sharp increase in holiday deal related search terms. Phrases such as “Cyber Monday deals” trended earlier than usual and “Cyber Monday 2010” was the second fastest moving search term yesterday.
Google also reports a dramatic rise in online meets offline search terms such as “Black Friday store hours” and “printable coupons.”
This year’s Cyber Monday deals truly were exceptional which makes me wonder if, in spite of the 19.4% increase in spending, did the average retailer actually turn much of a profit? Even though I was already done my holiday shopping (yes, really), I couldn’t resist a late deal offered by Warner Archives that cut 50% off the price if I bought five DVDs and they threw in free shipping. Like a good holiday shopper, I bought five even though I only was interested in three. Can’t turn down a deal like that, can I?
How was your Cyber Monday experience?