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Late-Rushing Holiday Shoppers Boost Online Sales, But Intensify Delivery Strains

Strategic Insights

— 1 min read

Heavy spending at the start and end of the holiday season, fueled by Amazon's Prime loyalty program and other digital offerings, contributed to a U-shaped pattern of holiday buying. Online sales spiked on Black Friday and Cyber Monday, then dipped before picking up again as Christmas neared, according to ChannelAdvisor Executive Chairman Scot Wingo. Shoppers who procrastinate often turn to e-gifts, like digital downloads, to avoid deliveries, says PayPal Senior Director Anuj Nayar.

Key Takeaways:

  • The Amazon Prime loyalty program, with its free two-day shipping and relatively low-cost one-day or same-day shipping, has contributed to a U-shaped pattern of holiday buying, with heavy spending early and late in the season.
  • Online sales spiked on Black Friday and Cyber Monday, then dipped before picking up again as Christmas neared, according to ChannelAdvisor.
  • Shoppers who procrastinate often turn to e-gifts, like digital downloads, to avoid deliveries, says PayPal Senior Director Anuj Nayar.
  • Mobile sales are up 46%, representing 31% of all online sales, and have accounted for more than half of all sales for the first time, according to IBM Watson data.
  • Amazon sales grew 19% through Monday, while Google Shopping sales grew 21%, according to ChannelAdvisor's third-party data.
  • EBay third-party sales, however, grew just 1.6% through Monday, according to ChannelAdvisor.
  • The holiday season's early start, which results in fewer big days midseason, is a change from previous years, says Scot Wingo.
  • Existing issues with the eBay platform, such as poor navigation and insufficient search results, are preventing growth, according to Baird analyst Colin Sebastian.

Statistics:

  • U.S. cyberspending was up 13.5% vs. last year's holiday period through Monday, up from 13.2% last holiday season, according to IBM Watson data.
  • Mobile traffic accounted for 31% of all online sales, representing a 46% increase in mobile sales through Monday.
  • ChannelAdvisor's third-party data show 11.8% online sales growth overall through Monday, but 19% for Amazon and 21% for Google Shopping.
  • EBay third-party sales were up just 1.6% through Monday, according to ChannelAdvisor.
  • Amazon has built 15 additional sortation centers since 2013 and has about 20 sortation centers now, says Scot Wingo.

Sources:

  • Investor's Business Daily
  • IBM
  • IBM Watson
  • ChannelAdvisor
  • PayPal
  • eBay
  • Baird
  • ShipMatrix
  • FedEx
  • UPS

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