Post-Cyber Week Global Online Sales Top $395B
December 27, 2022
Salesforce predicts over 1.4 billion orders purchased this holiday season will
Seamless fulfillment and easy returns will be key strategies for retailers
looking to drive loyalty and profitability through the remainder of the holidays
Despite economic challenges, global online sales across the first three weeks of
December increased 2% year over year (YoY), representing $395 billion in online
holiday spend. Convenience continues to be a priority for 2022 shoppers as Buy
Online and Pick Up In Store (BOPIS) accounted for 23% of online orders during
the final full weekend of holiday shopping.
“After a surprisingly strong Cyber Week in
the U.S., retailers are continuing to offer attractive online discounts in the
final few weeks of the holiday to clear balance sheets and shelf space,” said
Rob Garf, VP and GM of Retail, Salesforce.
Rob continued, "Retailers must now turn their attention to extending the online
shopping window with creative store fulfillment and preparing for the imminent
returns tsunami to drive both loyalty and profitability during the season’s
Salesforce analyzed shopping data across
commerce, marketing, and service from over 1.5 billion people shopping on retail
sites (including 24 of the top 30 U.S. online retailers) using Salesforce
Customer 360 and found:
holiday insights (November 29–December 19):
- U.S. consumers keep
up the shopping momentum: U.S. online sales grew 8% YoY across the
three weeks following Cyber Week 2022, with $97 billion in holiday
- U.S. buoys global
online sales: Since Nov. 1, U.S. digital sales are up 5%
reaching $245 billion, while global sales are flat at $1.03
trillion. Online sales across Europe continue to fall due to
geopolitical and economic challenges.
- A returns
tsunami is in the forecast: Lowered consumer confidence and
discretionary spending is making consumers think twice about their
purchases. Returns nearly doubled the week after Cyber Week compared
to the previous year and have remained high since then. As consumers
become more discerning about discretionary spending, this may be
from those who purchased gifts earlier in the season returning
products to buy them back at a steeper discount.
- Salesforce now
predicts over 1.4 billion orders purchased this holiday season
(13% of orders) will be returned – up 57% YoY.
Retailers aren’t shying away
from discounts: Despite
lackluster deals early in
the shopping season,
data indicates the average discount rate for the three weeks after Cyber
Week remains higher than last year when there was inventory scarcity and
high demand. The average U.S. discount rate stands at 19%, with the
global discount rate at 18%, an increase of 6% globally and in the U.S.
YoY. Discounts surged two weeks after Cyber Week, rising 11% globally
YoY and 14% in the U.S. as retailers looked to entice last minute
shoppers ahead of the shipping cutoff window.
BOPIS to the
rescue for last-minute shoppers: Nearly one out of every five online
orders placed globally this holiday season has been via Buy Online and
Pick Up In Store (BOPIS). BOPIS usage peaked at 20.2% of orders during
Cyber Week before dipping to 19% in the following two weeks. BOPIS usage
picked up again after the ground shipping cutoff over the weekend before
Christmas. On Friday, Dec. 16 BOPIS orders surged to 23% of total order
volume and continued to grow over the weekend, peaking at 25% of all
orders on Saturday. These are the highest rates of BOPIS observed during
the entire holiday season.
- Top December
- Skincare (26%)
- General Apparel
- Makeup (20%)
Social continues to fuel
online shopping traffic: After hitting all-time highs during
social traffic referring to retailers’ sites grew 23% YoY over the first
three weeks of December globally, representing 12% of all mobile
traffic. The U.S. is leading this trend, with social traffic growing 28%
YoY over the first three weeks of December.
categories for the three weeks after Cyber Week include:
- Salesforce now
predicts BOPIS usage will surge the week before Christmas. With the
ground shipping window closed, companies that offer BOPIS will grow
40-50% higher than those without this fulfillment option in the
final days leading up to Christmas.
- Active Footwear
- Active apparel (+22%
- General footwear
2022 Salesforce Holiday Insights and Predictions Methodology
delivers retail success now with data and insights from the shopping behavior of
consumers around the world. To help retailers and brands benchmark holiday
performance, Salesforce analyzes aggregated data to produce holiday insights
from the activity of over 1.5 billion global shoppers across more than 64
countries powered by Commerce Cloud, in addition to Marketing Cloud and Service
Cloud data from retailers. Salesforce’s holiday data set includes 24 of the top
30 U.S. online retailers on the 2021 Digital Commerce 360 list and utilizes
publicly available third-party data sources.
To qualify for inclusion in the analysis set, a digital commerce site must have
transacted throughout the analysis period, in this case Oct. 1, 2019 through
Dec. 19, 2022, and met a monthly minimum visit threshold. Additional data
hygiene factors are applied to ensure consistent metric calculation.
The Salesforce holiday predictions are not indicative of the operational
performance of Salesforce or its reported financial metrics including GMV growth
and comparable customer GMV growth.