Cyber Monday spending is expected to surpass $12 billion, an all-time high, as shoppers take advantage of sales on products like Barbie dolls, smart watches, Lego sets, and headphones, based on preliminary projections of Adobe Digital Insights.
Cyber Monday is the biggest online shopping day in the United States, with estimates ranging from $12 billion to $12.4 billion.
It stated that a large amount of this spending, almost $4 billion, is anticipated to happen between 6 and 11 p.m. EST, especially from last-minute consumers. In terms of total spending, this would be a 9.7% rise over the $11.3 billion made on Cyber Monday of the previous year.
Retailers are using push notifications, video streaming, and text message advertisements to entice Americans who are tired of inflation to spend on Cyber Monday. These advertisements highlight heavily discounted electronics, toys, apparel, cosmetics, and other goods.
As of 6 p.m. EST, US customers had spent $8.3 billion online, suggesting that the push was successful, according to Adobe Analytics, which collects data via Adobe's Experience cloud services for e-commerce platforms.
According to the company, a record number of frugal Christmas shoppers are anticipated to make use of buy now and pay later options on Cyber Monday in order to ease financial strain.
Since 12 a.m. on Monday, consumers have been searching for deals, and according to analytics firm Criteo, which monitors sales from over 700 retailers and brands in the US, more transactions were made during the initial 12 hours of the day than during the same period in 2022.
However, companies such as Walmart, Target, and Home Depot have issued a warning over the strength of consumers, pointing to rising interest rates and shrinking household savings.
In the next few weeks, shops should expect to offer greater discounts, according to Charles Sizemore, the chief investment officer of Sizemore Capital Management.
In light of the fact that labor and input costs are still high and consumers are still finicky, this worries him about profit margins. Sizemore stated that he really thinks margins will be depressed over the holiday season. Sizemore's company has roughly $2 million worth of shares in both Target and Walmart.
Amazon started promoting Cyber Monday Deals early on Saturday. These deals included discounts of a maximum of 46% on select Instant Pot appliances, 37% off select Vitamix blenders, as well as 35% off Amazon products, such as a 55-inch Amazon Fire TV.
Walmart reduced prices on Sunday night, following the trend of companies offering early-bird discounts on key shopping days in an attempt to gain market share. Walmart increased their Black Friday discounts for some clothing from 50% to 60% on Monday.