Sales at Amazon to start Cyber Monday already forecasting a massive record
Over the weekend we published news and data on how¬†strong online commerce was for Black Friday¬†as well as how brick and mortar sales were down for the third year in a row.¬† Now on Cyber Monday, which is predictably the year’s largest day to shop online, early reports from Amazon show that this year will shatter all previous records for Cyber Monday sales.
Preliminary reports for Black Friday and Thanksgiving sales point to a promising start to the holiday shopping season, and once again,¬†it is a story of online spending rather than brick and mortar. According to Adobe Analytics, which measures transactions at the largest 100 online retailers,¬†online sales were up by 17.9% yoy for the two-day period. Moreover, according to BofA, there continues to be a shift toward mobile devices,¬†with Commerce marketing firm Criteo finding that 40% of Black Friday online purchases were on mobile phones, up from 29% last year.
Speaking to Bloomberg TV, First Data President Guy Chiarello said the first 3 hours of Cyber Monday were ‚Äúunbelievably robust,‚ÄĚ with¬†40% more e-commerce traffic than yesterday, 30% more than a year ago.
In contrast,¬†according to Bank of America, most indications suggest that activity was down at stores. ShopperTrak found that store traffic fell by about 1%. –¬†Zerohedge
Additionally, Amazon stock has soared over the past three trading days, providing CEO Jeff Bezos the impetus to become the world’s first $100 billion man.
With the iPhone X becoming the first Apple phone in a few ‘generations’ to stimulate real enthusiasm from buyers, it along with what appears to be a strong push for discounts in the electronics sector this holiday season, should potentially lead online sales to close in on that critical mass where online purchases surpass those earned at brick and mortar stores.¬† But even if that landmark shift takes a few more years to achieve, it is now apparent that going out to the malls to shop is a dying breed, and shopping online is completely here to stay.
Kenneth Schortgen Jr¬†is¬†a writer for¬†The Daily Economist,¬†Secretsofthefed.com,¬†Roguemoney.net, and¬†Viral Liberty, and hosts¬†the popular¬†youtube podcast¬†on Mondays, Wednesdays and Fridays.¬†Ken can also¬†be heard Wednesday afternoons giving an weekly economic report on the¬†Angel Clark radio show.