The Top 1000 online retailers in North America grew online sales 4.8% 12 months over 12 months in November and December 2023, based on a brand new estimate from Digital Commerce 360.
And while their online domestic sales grew within the two-month holiday sales period, international sales struggled amid a tougher European economy, said James Risley, research data manager and senior analyst at Digital Commerce 360. Furthermore, the expansion comes despite shoppers spending less time browsing ecommerce sites, with traffic down barely to Top 1000 retailers.
Manufacturers saw a better share of spending, Risley said, as internet buyers focused on higher-priced items like jewelry and consumer electronics. Mass merchants’ share of online sales remained flat, as shoppers spent more with specialized retailers and hard-to-find brands.
The Top 1000 is Digital Commerce 360’s database rating North America’s largest online retailers based on their annual web sales.
Domestic holiday online sales grow in 2023
Overall U.S. online holiday spending grew 4.9% in the identical November-through-December time-frame, based on data from Adobe Analytics. That pushed holiday online sales to $221.1 billion in 2023, based on Adobe.
Mobile shopping overtook desktop online sales for the primary time in 2023. 51.1% of online sales across the vacation season were made via smartphones in 2023, up from 47% in 2022, Adobe data showed. Mobile sales peaked on Christmas Day at 65%, from 61% in 2022. Consumers made purchases on final holiday deals while spending time with family and friends, Adobe said.
Meanwhile, curbside pickup dipped barely. Consumers used it as a success method for 18.4% of online orders from retailers offering the choice. That’s down from 21% in 2022, based on Adobe. Shoppers used it most ahead of Christmas Eve on Dec. 22 and Dec. 23, accounting for 36.8% of orders during that time-frame.
Holiday spending by category
65% of online holiday spending in 2023 was in only five of the 18 categories Adobe tracks.
Top categories by online holiday spending:
- Electronics ($50.8 billion)
- Apparel ($41.5 billion)
- Furniture ($27.3 billion)
- Groceries ($19.1 billion)
- Toys ($7.7 billion)
Adobe’s data relies on 1 trillion visits to U.S. retail sites, 100 million SKUs and 18 categories. 203 online retailers within the Top 1000 use Adobe Analytics for his or her web analytics, and 100 use it for site design and development. Top 1000 online retailers also use it for content delivery and management, as an ecommerce platform, a marketing platform, for personalization and more.
Global online holiday sales in 2023
Globally, though, online sales grew 3% to achieve $1.17 trillion, based on Salesforce Inc. data. The worldwide average discount rate across the complete holiday season was 21%. That’s the best it has been since 2020, Salesforce said. Salesforce uses data from greater than 1.5 billion global shoppers.
The web holiday shopping season began with a powerful first week, based on Salesforce data, with 4% year-over-year growth. The Cyber 5 period, or the five days from Thanksgiving through Cyber Monday, tied for the best year-over-year growth with the week preceding Christmas. While they each grew at a rate of 6% 12 months over 12 months, the Cyber 5 week also featured the best average discount rate of the complete November-through-December holiday sales period (27%), based on Salesforce.
Globally, online retailers held a mean of 16% off their product prices at minimum. On average, the steepest discounts were in November, Salesforce data shows.
69 online retailers within the Top 1000 use Salesforce’s ecommerce platform, and 55 use its content delivery network. Top 1000 online retailers also use Salesforce for site search, marketing automation, mobile commerce, personalization and more.
November sales paved the way
Domestically, the vast majority of online holiday shopping happened in November, boosted by a powerful Cyber 5. U.S. consumers spent $123.5 billion online in November, a 6% year-over-year increase, based on Adobe data. $38.0 billion of that spending took place between Thanksgiving and Cyber Monday, growing 7.8% over 2022.
And through the Cyber 5, Cyber Monday pulled in essentially the most online sales, making it the biggest online sales day of the 12 months. It brought in $12.48 billion, whereas Black Friday online sales reached $9.88 billion.
In November as an entire, nonstore sales, which encompass but aren’t limited to online sales, grew 10.6% over 2022, based on data from the U.S. Census Bureau. That’s significantly higher than total retail sales, which grew 4.4% over the identical period.
Online sales in November recorded the biggest growth of any category measured by The National Retail Federation (NRF) and CNBC’s Retail Monitor, growing 26.27% 12 months over 12 months. Retail Monitor’s data comes from credit and debit card purchases from consumer data vendor Affinity Solutions.
“November Retail Monitor data shows that customers are embracing the vacation season and promotions being offered by retailers,” NRF president and CEO Matthew Shay said in an announcement. “Value-conscious shoppers are out in search of deals as they purchase gifts for family and friends, and this data indicates that they’re finding them.”
Online retailers follow through in December
U.S. consumers kept spending to shut out 2023, resulting in healthy sales in December. U.S. consumers spent $98.6 billion in U.S. online sales in December. Retailer sales that continued on past Cyber Monday drove a few of that December spending, Adobe said.
Nonstore sales increased 7.0% 12 months over 12 months in December, based on the December monthly retail sales report from the U.S. Commerce Department. Nonstore sales also grew 8.4% in Q4 2023 and eight.0% for the entire 12 months, down from 12.8% growth in 2022.
The ecommerce addressable portion of total retail sales, excluding restaurants, fuel, and automobiles, grew 3.9% in 2023, based on Digital Commerce 360’s evaluation of Commerce Department data.
“Retail sales were stronger than expected in December,” said Ted Rossman, senior industry analyst at Bankrate, in a research note. “Bars and restaurants, health and private care stores, electronics and appliance stores and motorized vehicle and parts dealers all notched double-digit year-over-year gains,” he said. Gas stations, furniture stores, malls, and constructing material stores were the one notable weak spots, he added.
Online and nonstore sales increased 31.17% 12 months over 12 months in December, based on an NRF statement.
Comparing the months of the 2023 holiday season
Online and non-store sales increased 2.59% month over month in December, based on data from the NRF and CNBC. Total retail sales grew 3.07% 12 months over 12 months in December, based on the NRF’s statement citing Retail Monitor data. Additionally they grew 0.44% over November.
That follows 4.24% year-over-year growth in November, which also grew 0.73% over October, based on Retail Monitor data that the NRF cited.
“December’s numbers combined with November’s results show retailers had a really successful two-month holiday season,” NRF’s Shay said. “Clearly, retailers got it right this holiday season, providing consumers with what they wanted, options on when and where to make their purchases and with prices customers were comfortable paying.”
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