U.S. online shoppers are pouring substantial funds into electronics and back-to-school essentials this summer, possibly reaching unprecedented levels of spending.
On July 16, Adobe reported that U.S. consumers spent $7.2 billion through e-commerce, marking a new daily record for online and mobile sales in 2023.
This surge coincided with the first half of Amazon’s 48-hour “Prime Day” sales event. The record-breaking figure includes sales from various retailers, not exclusive to Amazon. The $7.2 billion in sales reflects nearly a 12% increase from the first half of Prime Day 2023, which occurred on July 11-12.
Adobe’s analysis revealed that the major drivers of online sales were electronics, such as headphones, Bluetooth speakers, televisions, fitness trackers, computers, and e-readers. Significant spending was also noted in categories including video games, small kitchen appliances, and perfume.
Back-to-school shopping experienced a significant rise as well, with spending increasing by 210% compared to daily levels in June. Items such as backpacks and lunchboxes played a key role in this surge.
Adobe’s report was based on the analysis of online transactions, encompassing over one trillion visits to U.S. retailers, 100 million stock keeping units (SKUs), and 18 product categories.
Furthermore, Adobe indicated that discounts are expected to remain substantial for the second day of the Prime Event. Shoppers can look forward to markdowns on items like electronics (23%), apparel (20%), televisions (17%), and home/furniture (16%).
“Steep discounting has been the story of e-commerce so far this year, as consumers look to get the most value out of their dollar,” said Vivek Pandya, lead analyst at Adobe Digital Insights.
The report also highlighted a spike in buy-now-pay-later usage on the first day, as consumers leaned on flexible payment options to manage their budgets amidst inflation. Despite inflation, consumer spending remains strong this year, partly driven by new demand, the firm noted.
Amazon’s annual Prime Day event has now become a significant e-commerce moment, prompting other retail giants like Target and Walmart to launch their own discount events. Even social media giant TikTok has tried a similar approach. However, Amazon, being one of the largest companies globally by market cap, is expected to see the most significant gains from this innovative sales approach.