Fears that consumers might curb spending on Christmas gifts in 2022 proved largely unfounded. According to Adobe, American shoppers spent a record-breaking $211.7 billion on online purchases between November 1 and December 31, a 2.5% increase from 2021. However, part of the increase is due to higher prices due to inflation.
Total U.S. vacation spending — in business and e-commerce — rose a non-inflation-adjusted 5.3% to $936.3 billion in November and December, according to the National Retail Federation. The trade group had forecast a 6% to 8% increase over 2021, or $942.6 billion to $960.4 billion.
Salesforce reported that global online sales were flat at $1.14 trillion in November and December, mainly due to weak spending in Europe and Australia.
Mastercard Spending Pulse reported that from November 1 to December 24, 2022, U.S. in-store sales increased 6.8% from 2021, while e-commerce sales increased 10.6%. E-commerce accounted for 21.6% of total retail sales for the 2022 holiday season, up from 20.9% in 2021. Sneakers were a top performer globally, with sales growing 31% from 2021, followed by general footwear with a plus of 15%.
Mobile shopping
According to Adobe, 47% of online sales during the 2022 holiday season were made on smartphones, up 4% from 2021. Christmas Day set a new mobile record and accounted for 61% of online sales – up from 58% the previous year. Similarly, during Cyber Week, 51% of sales were made from smartphones, up 5% from the previous year.
However, desktop shopping had a better conversion rate than mobile, and desktop purchases contained more items per order.
discounts
Salesforce data shows that the average discount for the three weeks following Cyber Week 2022 was higher than last year, when inventory shortages and high demand prevailed. In contrast, certain categories had an inventory glut in 2022 that retailers had to postpone. Retailer discounts (off list prices) peaked during Cyber Week at 27% globally and 30% in the US
Data from the Adobe Digital Price Index, which tracks e-commerce prices across 18 categories, shows that average monthly online prices have fallen year-on-year since September 2022.
According to Adobe, toy discounts peaked in the fall of 2022 at 34% of list price, compared to 19% in 2021.
The discount had the desired effect of increasing sales, particularly among price-conscious consumers. Vivek Pandya, senior analyst at Digital Insights at Adobe, said, “At a time when consumers were grappling with increased prices in areas like groceries, gas and rent, holiday rebates were powerful enough to sustain spending throughout the season. The big deals attracted consumers and boosted volume, which helped retailers facing oversupply issues, particularly in categories like apparel, electronics and toys.”
Returns
Product returns from online holiday sales rose sharply in 2022, with Salesforce estimating that 1.4 billion orders were returned worldwide during the holiday season, a 63% increase from 2021. Returns spiked in the six days following Christmas. 16 percent of all returns arrived this week.
Other Adobe results
- Buy now, pay later orders in the US during the 2022 holiday season increased 4% compared to 2021. However, sales fell by 2%.
- Paid search drove 29% of US online sales, the biggest driver this holiday season 2022. Direct website visits accounted for 19%, with organic search accounting for 17%. Email accounted for 15%.
