Posted by Alex Jackson on 2nd Nov 2018
In our last few entries, we have focused primarily on the all-important holiday season. We have looked at some need to know basics for the liquidation reseller such as planning ahead, getting your inventory in early and starting your 4th quarter out on the right foot by being prepared for the busy Holiday season! We even explored some holiday trends such as the self-gifting phenomenon, remember consumers are not planning on taking a break from their normal purchases and we have the data to back it up, more on that later. This week we are going to focus solely on the numbers, and they all point to an excellent season for E-commerce, brick and mortar and especially retailers who have a leg in both worlds.
Adobe released its Retail Unwrapped 2018 Holiday Predictions Report this week. The report defines the holiday season as November 1st to December 31st. Granted some may say (us included) that the actual season starts much earlier, mid-October and ends in late January when the gift card spending finally dies down but this debate will have to wait for another day. So what can we expect from Nov. 1 through Dec. 31?
First, let’s go online where there is significant growth expected this year. 2018 online purchases are projected to be $124 Billion or nearly a 15% increase over 2017. 1 in every 6 dollars spent this holiday season will be spent online.
What about traditional retail? This is also projected to have a nice bump in sales this year with a 4.5% expected growth over the 2017 holiday season which is quite respectable growth. There is an interesting trend highlighted in this report which goes a long way towards explaining how big internet retailers push into physical stores. Brick and Click that’s a store with an online and physical presence is seeing a much higher rate of sales, conversion than brick or online only. Consumers are getting used to the idea of taking potential purchase for a test run in the physical store and then later buying the item online at a discount.
Next, let’s talk turkey and Thanksgiving Weekend, Black Friday to Cyber Monday. Is this still a big deal? With sales starting earlier each year are these big shopping days getting watered down? No, quite the opposite for online retail. $23.4 Billion is the projected total for online sales from Thanksgiving to Cyber Monday, with 7.8 billion of that total coming from Cyber Monday alone.
Let’s talk golden hours, no not photography here but the golden hours of e-commerce. Cyber Monday has a very tight and lucrative window of selling, those golden hours are from 7 to 10 PM Pacific time, this three-hour window is expected to generate the same sales as an average holiday season day. All told this weekend represents 19% of the total online holiday sales so be prepared for it!
A few more interesting tidbits can be taken from this report; smartphones are where consumers are doing most of their online shopping with the bulk of sales coming from mobile apps. Online retailers will also benefit this year from an extra shopping day this year between Cyber Monday and Christmas 28 days in total. Last, remember our look at self-gifting? $1 of every 7 dollars spent online this year is going towards gifts for themselves.
There is a lot of encouraging news in this report for brick, click, and brick & click retailers alike and if you’re not getting geared up now, you could be missing out big on a very promising holiday season. Remember we have the numbers to back it up!