Online Holiday Spending Hit a New High In 2023

Online shoppers in the United States spent a record $222.1 billion during the holiday shopping season that ran between Nov. 1 and Dec. 31, a 4.9%increase from the same period a year earlier, according to Adobe Analytics.

November was a strong month for online holiday purchases, with consumers spending $123.5 billion for the month, a 6% increase from a year earlier. November sales were bolstered by a strong Cyber Week, the period between Thanksgiving and Cyber Monday. During the period, online shoppers spent $38 billion, up 7.8% from a year ago.

December sales were up 3.7% from the same month in 2022. The increase was driven largely by discounts, Adobe says. Electronics was one product category in which consumers could find exceptional deals, Adobe says, with merchants offering discounts as high as 31%, compared to 25% in 2022. Apparel was another deeply discounted product category, with discounts as high as 24%, compared to 20% a year earlier. 

Adobe tracked more than 1 trillion visits to U.S. retail e-commerce sites, 100 million shopkeeping units (SKUs), and 18 product categories.

Buy now, pay later loans accounted for $16.6 billion of online sales during the season, a 14.4% increase from a year ago. Cyber Monday, the Monday after Thanksgiving, posted a record $940 million in BNPL sales, up 42.5% year over year. Online sales financed with BNPL credit were strong through all of 2023, totaling $75 billion between Jan. 1 and Dec. 31, a 14.4% increase from 2022, according to Adobe’s analysis.

“In an uncertain demand environment, retailers leaned on discounting and flexible payment methods to entice shoppers this holiday season,” Vivek Pandya, lead analyst for 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.”

Mobile shopping played a big role in online sales during the holiday season, with 51.1% of online sales initiated through smart phones, up from 47% in 2022. Mobile shopping peaked on Christmas Day, driving 63% of online sales for the day, compared to 61% in 2022.

One area where consumer spending slowed compared to a year earlier was curbside pickup, which accounted for 18.4% of online orders, down from 21%. Curbside pickup peaked Dec. 22 and Dec. 23, accounting for 36.8% of online orders as shoppers used the service to make sure they took delivery of gifts ordered online in time for Christmas, Adobe says.