According to Adobe Analytics, after a busy holiday shopping weekend, discount seekers will spend between $12 billion and $12.4 billion on beauty products, electronics, toys and apparel on Cyber Monday.
Vivek Pandya, lead analyst at Adobe Digital Insights, which tracks data through the Adobe Experience Cloud service for e-commerce platforms, said:
We are seeing very strong discounts.
Intense online traffic and transactions could lead to a 5.4% or more increase in sales for shoppers in the US. Customers spent $10.3bn in the weekend before Cyber Monday, which was 7.7% more than last year, as retailers offered more discounts compared to the previous year.
Retailers planned to cut average prices on electronics by 30 per cent and furniture by 19 per cent.
Amazon (AMZN.O) started selling its Cyber Monday deals back on Saturday, including up to 46 per cent off some Instant Pot kitchen appliances, 37 per cent off some Vitamix blenders and 35 per cent off Amazon devices, including the 55-inch Amazon Fire TV.
Furthermore, Walmart (WMT.N) cut prices on Sunday night, joining the trend of retailers discounting early on major shopping days.
According to Salesforce, retailers have increased their use of push notifications, text messaging and streaming video ads to engage shoppers this year, increasing their use of digital marketing by 56% compared to last year.
More than half of online purchases on Monday are likely to be made on mobile devices. The company says it has access to transaction data from 85 per cent of the top 100 online retailers. This holiday season, transactions from mobile phones could surpass purchases made from desktops for the first time, it claimed.
Last-minute shoppers on Monday could spend $4 billion between 6 p.m. and 11 p.m. because “consumers are going to be concerned about discounts weakening after that.”
“Because people are getting gifts for other people, they seem to stretch a little more, and splurge.”
TJ Maxx, Ross, Walmart and Costco (COST.O) are expected to be “holiday winners” as shoppers look for big discounts, Jharonne Martis, director of consumer research, analytics and AI at LSEG, reported on Monday.
Rob Garf, vice president and general manager for retail at Salesforce, which tracks data flowing through the Commerce Cloud e-commerce service, said many “retailers have really pulled back on their inventory levels, to preserve capital and increase margins.”
The risk consumers take at this point for waiting too long is that a product may not be available when they go to buy it.
