According to the Adobe (ADBE) Digital Economy Index, as of 9 p.m. ET on Cyber Monday, US shoppers had spent $7.1 billion on online shopping. The Covid pandemic-fueled e-Commerce sales acceleration benefited Shopify. The company, which is situated in Ontario, Canada, provides technology for other businesses’ online storefronts as well as point-of-sale systems.
Sales across its global network of small businesses and direct-to-consumer organizations have been robust on Cyber Monday. The $5.1 billion in sales made by Shopify merchants last year has already been surpassed. After the final total is done, Adobe anticipates shoppers will spend between $10.4 billion and $11.1 billion, with a $2.5 billion possibility.
Finkelstein’s comments provide insight into consumer spending on one of the busiest days of the holiday shopping season when internet businesses offer bargains and discounts on a wide range of products.
Finkelstein said Shopify merchants made $2.9 billion in sales on Black Friday, up 22% from last year at a time when many buyers were hesitant to purchase in person owing to concerns about the coronavirus. In 2021, Shopify’s Black Friday sales were more than quadruple those of 2019.
Consumers spent $5.1 billion on the internet on Thanksgiving Day, according to Adobe, which is unchanged from the previous year. Shopify’s stock fell 0.6 percent to $1,567.02 a share on Monday, putting the company’s market cap at $195.5 billion. Year to date, the stock is up 38.4 percent.
Traffic at retail outlets on Black Friday plummeted 28.3 percent compared to 2019 levels, as Americans shifted more of their spending online and started their shopping earlier in the year.
Traffic was up 47.5 percent. The South had the best chance of recovering to 2019 levels on Black Friday, followed by the Midwest, the West, and finally the Northeast. Adobe examines approximately one trillion visits to retail sites in the United States, with over 100 million goods in 18 distinct product categories.