Cyber Monday shatters records with $12.4B in online spending 

Cyber Monday 2023 has entered the history books as the largest online shopping day ever, witnessing a staggering $12.4 billion in spending—a remarkable 9.4% increase year-over-year, surpassing industry projections. The shopping frenzy peaked during the 10:00 pm to 11:00 pm EST hour, with consumers collectively spending an astonishing $15.7 million every minute.

Consumers strategically exercised restraint in the lead-up to Cyber Week, anticipating substantial discounts, and retailers did not disappoint. Record-high discounts were observed in electronics (31%) and furniture (21%), while shoppers enjoyed generous promotions in categories such as toys (27%), apparel (23%), and appliances (18%). The shopping excitement is far from over, with expectations of peak discounts for appliances later this week and the lowest levels for sporting goods in early December.

This extraordinary success during Cyber Week highlights consumers’ willingness to splurge during holiday and promotional events despite financial constraints. The shift in shopping behavior is evident as early sales tactics prompt some consumers to bring forward their holiday spending. Cyber Five’s share of total holiday e-commerce sales slightly dipped to 15.8% this year, as shoppers strategically curtailed spending in the weeks preceding the event to capitalize on better deals over Thanksgiving weekend.

Notably, consumer spending patterns reveal a focus on gifting, with respondents planning to spend $860 on non-gift holiday purchases, reflecting a 26% decline year-over-year. Simultaneously, spending on gifts is expected to rise by 2.2% year-over-year.

Buy now, pay later (BNPL) options gained significant traction on Cyber Monday, with users utilizing BNPL services to pay for $940 million worth of online purchases—an impressive 42.5% increase year-over-year and an all-time high. Consumers leveraged the flexibility of BNPL not only for payment convenience but also to increase the average number of items per order by 11% year-over-year.

In the face of multiple challenges, including rising everyday prices, elevated interest rates, global conflicts, and tightening credit access, consumers have demonstrated remarkable resilience, underscoring the enduring strength of their spending power. It was expected that Cyber Monday was poised to achieve a remarkable milestone by surpassing $13 billion in online sales, demonstrating robust consumer spending during this digital shopping extravaganza.