Tags: Mobile | Cyber | Monday | Sales

Purchases of Mobile Devices Power Cyber Monday Sales

Monday, 02 December 2013 06:00 PM

Cyber Monday online sales increased 19 percent compared with last year, setting the foundation for what’s projected to be the biggest online shopping day of 2013.

Retailers catering to smartphone and tablet users are especially benefiting, with mobile traffic accounting for 30 percent of the total, an increase of almost 62 percent from last year, International Business Machines Corp. said in a statement Monday. IBM reported the sales as of 3 p.m. New York time Monday and compared the results with the same period last year.

The convenience of surfing deals from the couch is allowing online retailers to ramp up sales after the first spending decline on a Black Friday weekend since 2009. Mobile devices drove more than 16 percent of online sales, IBM said. EBay Inc.’s PayPal unit said in statement that mobile payment volume more than doubled as of 2 p.m. Eastern time.

“Cyber Monday has been the single biggest shopping day of the year for U.S. retailers for a number of years now,” Sucharita Mulpuru, an analyst at Forrester Research Inc., said in a statement Monday. “This year should be no different, especially given the compressed timeframe for holiday shopping and the trend toward more online shopping in general.”

Retailers such as Amazon.com Inc. are chasing e-commerce holiday revenue that is projected to increase 15 percent from 2012 to $78.7 billion, according to Forrester. Online spending increased 15 percent to a record $1.2 billion on Black Friday, according to research by ComScore Inc.

Comparable Sales

Amazon and EBay both posted an increase in same-store sales Monday, compared with last year’s Cyber Monday takings, according to ChannelAdvisor Inc, which provides services to sellers on both of those sites. Amazon comparable sales rose 47 percent as of 10:30 a.m. New York time, while EBay’s increased 21 percent, the firm said. EBay’s, whose slew of deals begins at noon Eastern time, has said it expects Cyber Monday to be its biggest sales day this holiday season.

Commerce on tablets and smartphones grew twice as fast in the third quarter as desktop online spending, and Web users in August spent more time engaging with retailers on mobile devices than on desktops for the first time, according to ComScore.

Buying patterns on mobile devices since Thanksgiving have shown that tablets are more popular for purchases, while mobile phones are the choice for browsing. Smartphones drove 20 percent of all online traffic compared to 9.4 percent for tablets, IBM said. At the same time, tablets accounted for 10 percent of purchases, more than the 6.3 percent driven by phones.

The overall spending decline on the Black Friday weekend reinforced projections for a lackluster holiday, increasing chances retailers will extend the deep discounts already hurting their profit margins. Purchases at stores and websites fell 2.9 percent to $57.4 billion during the four days beginning with the Nov. 28 Thanksgiving holiday, according to a survey commissioned by the National Retail Federation.

© Copyright 2019 Bloomberg News. All rights reserved.

1Like our page
Cyber Monday online sales increased 19 percent compared with last year, setting the foundation for what's projected to be the biggest online shopping day of 2013.
Monday, 02 December 2013 06:00 PM
Newsmax Media, Inc.

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved