Cyber 5 period key takeaways:
- 2023 Global retailers and marketplaces sales growth reached 7% YoY.
- U.S. combined sales growth reached 5% YoY.
Despite concerns about inflationary pressure on consumer discretionary spending, consumers showed no signs of slowing their spending. Rithum, which connects over 40,000 global retailers and brands with more than $50 billion in gross merchandise value annually, saw a record-high combined $1.55 billion in GMV transacted on its platform during the Cyber 5 shopping event.
Reports warned of a muted holiday season, but consumer demand was high. Increased spending was driven by new demand, not higher prices due to inflation, according to Adobe Analytics holiday data.
Rithum global retailer and marketplaces reflected this trend, as both grew 7% year over year. In the U.S., combined sales grew 5% year over year during the Cyber 5 shopping period.
U.S. consumers opted to spend throughout the Cyber 5 period
U.S. consumers shopped throughout the Cyber 5 period to take advantage of holiday deals. The Cyber 5 period includes the five days between Thanksgiving and Cyber Monday. On Black Friday, consumers spent $9.8 billion in U.S. online sales, an increase of 7.5% compared with the year prior, according to Adobe, which uses a different methodology than Rithum. Cyber Monday beat that, with total U.S. online sales reaching $12.4 billion, up 9.6% year over year.
2023 year over year GMV growth outpaces 2022
Both global and U.S. retailers and marketplaces experienced year over year growth each day during the Cyber 5 shopping event, according to Rithum data. Global marketplaces GMV grew a cumulative 12% year over year during the 5-day shopping event. U.S. retailers and marketplaces GMV grew a cumulative 8% year over year. Rithum supports marketplace channels including Amazon.com Inc., Walmart Marketplace, eBay, Target, Macy’s, and others.
The Cyber 5 online shopping period is a worldwide event. Global consumers spent more in 2023 each day compared with 2022.
Global retailers and marketplaces GMV growth year over year by day:
- Thanksgiving – 14%
- Black Friday – 10%
- Cyber Saturday – 12%
- Cyber Sunday – 16%
- Cyber Monday – 10%
According to Rithum data, U.S. consumers didn’t wait until Black Friday to start shopping. On Thanksgiving Day 2023, U.S. retailers and marketplace sales grew 13% year over year.
U.S. retailers and marketplaces GMV growth year over year by day:
- Thanksgiving – 13%
- Black Friday – 5%
- Cyber Saturday – 8%
- Cyber Sunday – 10%
- Cyber Monday – 7%
Consumers respond to holiday deals
Even with inflation at higher levels and higher borrowing costs, consumers spent at record levels over the Cyber 5 period, says Pete Elmgren, Chief Revenue Officer.
“Consumers have seized the opportunity to purchase essentials – especially when they see an opportunity for savings,” Elmgren said.
“A large reason for this is the deals that have been offered to consumers,” he said. “We have seen that clothing, electronics, and home goods seem to be some of the largest sellers of categories of products sold.”
Marketplace top categories reflect practical purchases
In 2023, Cyber 5 best-selling marketplace categories reflected a trend toward buying essential merchandise. Instead of toys and televisions topping the list, consumers chose to spend on clothing items, which dominated the top 10 selling global marketplace categories for both men and women.
Global top 10 best-selling marketplace categories during Cyber 5:
- Work boots and shoes
- Women’s coats and jackets
- Cell phones and smartphones
- Men’s coats and jackets
- PC laptops and notebooks
- Men’s athletic shoes
- Women’s boots
- Vacuum cleaners
- Women’s tops and blouses
- Artificial Christmas trees
U.S. top 10 best-selling marketplace categories during Cyber 5:
- Work boots and shoes
- PC laptops and notebooks
- Men’s athletic shoes
- Artificial Christmas trees
- Women’s boots
- Car tires
- Cell phones and smartphones
- Men’s pants
- Women’s athletic shoes
- Beds and bed frames
Consumers planned for holiday deals during Cyber 5. 70% of online shoppers anticipated better deals on Black Friday and Cyber Monday, according to Rithum’s “Holiday Shopping Trends 2023” consumer survey published earlier this year.
National Retail Federation data confirmed that consumers waited to shop deals during the Cyber 5 2023 period. 55% confirmed their purchases were specifically driven by sales and promotions, up from 52% in 2022. And 31% were enticed by a limited-time sales or promotion to make a purchase they were hesitant about, up from 29% in 2022, according to NRF’s Annual 2023 Thanksgiving Weekend Consumer Survey. The survey, conducted by Prosper Insights & Analytics, included insights from 3,498 adult U.S. consumers between Nov. 22 and 26.
Consumers are looking for convenience and savings, Elmgren said. That includes rising expectations for options available to pay, how they want their products delivered to them, and/or how they pick them up with services such as buy online, pickup in store (BOPIS).
Rithum’s 2023 Thanksgiving – Cyber Monday data is based on gross merchandise value (GMV) in U.S. dollars.
Adobe Analytics gathers its data by analyzing one trillion visits to U.S. retail websites, 18 product categories and 100 million unique items. It does not track brick-and-mortar retail transactions.
To learn more about Rithum solutions to power you through the holiday season and beyond, please contact us.