eCommerce takes the spoils from Black Friday 2019
This year, Black Friday has given us an indication of the strength that eCommerce and omni-channel focused retailers have over their brick and mortar competitors.
Digital sales on November 29th 2019 were up 20% from last year, with sales hitting $7.4 billion in the US. This figure now represents the third-largest online shopping day ever, with Cyber Monday 2018 in second place, and Cyber Monday 2019 first. This increase in digital sales is in stark contrast with the decline in brick and mortar sales across the US, with overall sales declining by 1.6% this Black Friday.
“Our belief is that weak season-to-date traffic, difficult weather trends, and a shorter holiday calendar could collectively be an overhang to holiday spending,” said Oliver Chen of Cowen’s, in Forbes. “We believe the consumer remains strong given low levels of unemployment and rising wages, however, we do not believe this dynamic is benefiting all companies equally.”
As well as online shopping being favored this year, so was choosing quick delivery options. This included a 43% increase in consumers choosing to pick up their products in-store, while buying them online. The average order value (AOV) also grew this year, with a 6% rise – taking the average purchase value to $168 USD. Adobe commented,“…consumers got more comfortable buying bigger ticket items online.”
The buying started early this year, with consumers spending $4.2 billion online during Thanksgiving, according to Adobe. This was a 14.5% increase from the same day in 2018. In terms of devices – 61% of traffic came from smartphones, which is up 15.8% on last year. Sales from smartphones increased too, up 21% on 2018.
One of the US’s biggest retailers – Walmart – had a very successful Black Friday, due to their focus on omni-channel and eCommerce. According to Tech Crunch, Walmart’s year on year (YOY) change in online spend for Black Friday and Thanksgiving was up 53%. Across the board, the shopping event was more important and beneficial for the bigger retailers, due to their ability to offer a wider selection of products, and delivery options.
Cyber Monday was even more successful for online retailers, with a record-breaking $9.4 billion spend in the US, which is up 19.7% from last year, as well as being the biggest day of online shopping ever documented.
Similarly to Black Friday, consumers were making much larger purchases on Cyber Monday, with the average checkout spend increasing 6% on last year. Adobe is now forecasting that online sales for the entire holiday period will hit $143.8 billion in the US, with shoppers already having spent $81.5 billion,
Instagram launches exclusive pop-up shop with Selfridges
Instagram has announced another big move on the path to becoming a major player in eCommerce, with a new pop-up based in Selfridges London store launching this week.
‘The Instagram Edit’, opening from the 5th – 15th December, will feature a curated selection of Instagram-first products, including fashion, jewellery, beauty and homeware brands. Many of the pieces will be exclusive to the pop-up and will be available for purchase via the app and in-store.
“Brands have been a key part of the Instagram community since our launch — Instagram has always been a place to discover and be inspired by businesses of all sizes,” Instagram fashion director Eva Chen said.
Brands include New York designers The Frankie Shop, gender-neutral brand One DNA, party fashion brad Kim Shui, jewelers Ammé London and Mene, British homeware brands Atelier Stella and Hopscotch London, and organic skincare brand Tandem.
According to Instagram, over 130 million people use the app’s shopping tags each month, so it is no surprise that the social media company are making big strides to increase their eCommerce presence.