Lured By Deep Discounts, Online Shoppers Set a Spending Record for the 2022 Holiday Shopping Season

E-commerce sales in the United States during the recently completed holiday shopping season—Nov. 1 through Dec. 31— totaled $211.7 billion, a 3.5% increase from the same period a year ago, according to Adobe Inc. The total set a record for holiday-season e-commerce sales, while the year-over-year increase was larger than the 2.5% rise Adobe forecast last October.

What’s more, the increase in spending was driven by net-new demand, as opposed to higher prices due to inflation, Adobe says.

Cyber week, which runs between Thanksgiving and the following Monday, was a key contributor to the increase, generating $35.3 billion in sales, up 4% from a year earlier. Overall, online shoppers spent consistently on a daily basis, with 38 days surpassing $38 billion in sales, the same as in 2021 and up from 25 days in 2020.

One factor mitigating the impact of inflation is that prices for goods sold online have been falling year-over-year since September 2022, according to the Adobe Digital Price Index, which tracks e-commerce prices across 18 categories. While the spending figures are not adjusted for inflation, Adobe says that even if rising prices were factored in, online spending would still be up due to consumer demand.

Indeed, discounting played a big role propelling consumer spending in e-commerce and m-commerce. Toys were among the most heavily discounted products, with cuts peaking at 34% off list price, compared to 19% in 2021. Prices for electronics were also greatly reduced, with peak discounts of 25% off list price, compared 8% in 2021. Discounts were deep across other categories, including computers at 20%, compared to 10% in 2021, apparel at 19%, compared to 13%, televisions at 17%, compared to 11%, and appliances at 16%, compared to 4%.

“At a time when consumers were dealing with elevated prices in areas such as food, gas, and rent, holiday discounts were strong enough to sustain discretionary spending through the entire season,” Vivek Pandya, lead analyst for Adobe Digital Insights, says in a prepared statement. “The big deals drew in consumers and drove volume, helping retailers who were challenged with oversupply issues, particularly in categories such as apparel, electronics, and toys.”  

The mobile channel was popular with holiday shoppers, accounting for 47% of sales, up from 43% a year ago. Christmas Day set a record for mobile sales, accounting for 61% of online sales December 25, compared to 58% in 2021. “For years, retailers have struggled to move the needle on mobile shopping, and the strong growth this season shows that investments made in improving the experience are beginning to pay off,” Adobe says.

Curbside pickup was used to fulfill 21% of online orders for retailers that offer the service, down from 23% in 2021. Curbside pickup peaked between December 22 and 23 being used for 42% of online orders. “Curbside has cemented itself as a major fulfillment method, providing brick-and-mortar retailers new ways to drive value from their physical storefronts,” Adobe says.