Post-Thanksgiving E-commerce: Cyber Monday Analysis
As we transition past Thanksgiving, Black Friday generated $9.8 billion in U.S. online sales, a 7.5% increase from last year, according to Adobe Analytics. An impressive 82% of people plan to shop during Cyber Week 2023, forecasting a continuous surge in sales. Analysts predict Cyber Week will yield 16.8% more revenue than the previous year, marking a substantial uptrend.
The online commerce industry is abuzz with new players—Shein, TikTok Shop, and Temu—posing challenges to giants like Amazon. With consumers exploring big deal days and easily comparing discounts online, influencers and social media advertising have streamlined spending on mobile devices. Let’s delve into their strategies and impact.
New Competitors on the E-Commerce Stage
In recent times, numerous e-commerce platforms have emerged, with Shein leading as a budget-friendly fashion destination. Shein’s rapid global expansion, especially in European and Latin American markets, showcases a commitment to global diversification for sustained growth.
TikTok Shop, boasting over 250 million downloads, capitalizes on the social media platform’s popularity. TikTok reports 33.3 million U.S. social buyers this year, trailing only Facebook (65.7 million) and Instagram (43 million). Gen Z’s inclination to buy on TikTok shop indicates a growing trend influenced by the influencer market, short video ads, and mobile commerce.
Temu has rapidly ascended to become the second most popular e-commerce app in the US, solidifying its position since entering the market in September 2022. With 250 million downloads in November 2023 and nearly 99 million visits per month as of September, Temu’s 4.6% website visitor percentage compared to Amazon’s 11.8% signals a shifting market dynamic, making the industry more competitive.
Reflecting on thePost-Thanksgiving Shopping Season
Stocks of Amazon (AMZN), Shopify (SHOP), Etsy (ETSY), and MercadoLibre (MELI) closed higher on Cyber Monday, indicating positive investor sentiment toward high selling revenue during Cyber Week. Although Thanksgiving and Cyber Monday are behind us, we can still expect a strong cyber week sales show that consumers are willing to spend. U.S. consumers spent $12.4 billion on Cyber Monday, up 9.6% year-on-year; it shows that consumers are still price-sensitive and willing to wait for discounts.
Temu, Shein, and TikTok Shop strategically positioned themselves for the post-Thanksgiving and Cyber Monday frenzy, offering deals. Temu performed exceptionally well in 2022, reaching the top of Apple’s App Store with Black Friday deals. While Amazon remains the largest, attracting more buyers, the ongoing shopping adventure continues through the holiday season.
The Evolution of E-Commerce
Concluding our exploration of the post-Thanksgiving e-commerce landscape, the rise of Shein, TikTok Shop, and Temu signals a shifting dynamic in online retail. While Amazon maintains its dominance, these newcomers showcase the industry’s adaptability. The shopping season has set the stage for a dynamic and competitive future, emphasizing the significance of strategic positioning, innovative approaches, and customer engagement in the e-commerce industry. Looking ahead, the ongoing shopping adventure promises further transformation in the digital retail space.