November sales delivered strong growth for online retailers and payment providers, as consumers increasingly use their smartphones to shop.
Following Black Friday Ruslan Kogan, CEO of Kogan said in 2019 shoppers spent $9.8 million in 24 hours on the site he founded, compared to $5.4 million in the previous year.
For buy now pay later giant Afterpay, Black Friday and Cyber Monday were record trading days, delivering underlying sales of more than $160 million, up 160 per cent compared to the 2018 dates.
The company also added 140,000 new customers, up 160 per cent compared to the prior year. Afterpay said both underlying sales and new customer growth materially outstripped previous daily records.
Nick Molnar co-founder and former CEO at Afterpay said in a Linkedin post, “Black Friday was Afterpay’s single biggest sales day in its history! (based on global sales volume). This comes after a record breaking November, in which, for the first time ever, we recorded $1.0 billion monthly underlying sales.
“Over this past holiday weekend, more than 6.6 million active customers (3+ million of them in the U.S.) shopped using Afterpay at more than 42,500 retail partners across the world. In fact on Black Friday, we saw the most Afterpay shopping from customers in Los Angeles, Brooklyn, Chicago, Houston and London.”
Mobile growth continues
In the US, Cyber Monday hit US$9.2 billion making it the largest shopping day in the country, growing 16.9 per cent year-over-year, according to figures from Adobe.
The “golden hours” of retail between 10pm and 2am will drive 30 per cent of all Cyber Monday revenue at US$2.8 billion.
This year’s Black Friday-Cyber Monday online sales via smartphones hit a new record, accounting for 33 per cent of all Cyber Monday sales at US$3 billion, a 46 per cent growth from the prior year according to Adobe.
The company said smartphones drove the majority of visits to retail sites at 54 per cent, growing 19 per cent from 2018.
The holiday season between November 1 and December 1 has generated US$72.1 billion online to date with a growth of 16.3 per cent.
With six fewer days between Cyber Monday and Christmas, retailers had to make up an estimated US$1 billion in potential revenue loss, and earlier deals in the season have helped drive sales.
Every day from November 1 has surpassed US$1 billion, with 12 days surpassing US$2 billion.
Thanksgiving drove US$4.2 billion at 14.5 per cent growth, while Black Friday hit US$7.4 billion at 19.6 per cent growth. November 30 and December 1 generated US$7.4 billion at 15.4 per cent growth, as shoppers took advantage of early Cyber Monday deals.
John Copeland, head of Marketing and Consumer Insights at Adobe said, “Cyber Monday will generate a record-breaking USS$9.2 billion and become the first day in history where consumers spend more than $3 billion on smartphones.
“Retailers unlocked sales earlier to combat a shorter shopping season, while continuing to drive up promotion of the big branded days including Black Friday and Cyber Monday. Consumers capitalised on deals and ramped up spending, especially on smartphones, where activity increased on days when shoppers were snowed or rained in.”