U.S. consumers set a new benchmark for online spending during Cyber Monday and the extended “Cyber Week” holiday sales period that began with Thanksgiving. E-commerce stocks demonstrated a mixed performance, with Amazon seeing gains, while competitors like eBay, Etsy, and Wayfair faced declines.
According to Adobe, Americans spent $14.25 billion online on Cyber Monday, marking a 7% increase compared to the previous year. Overall, online spending throughout Cyber Week rose by 7.7%, reaching a total of $44.2 billion. While these figures represent a new record, the growth rate is slightly down from the 8.3% increase recorded during Cyber Week in 2024. Furthermore, the year’s Cyber Monday growth fell short of the 9.1% increase seen on Black Friday, showing that consumer spending patterns are evolving.
Vivek Pandya, an analyst at Adobe, noted that U.S. retailers significantly leaned into discounts this season to spur online shopping. Competitive pricing strategies encouraged consumers to begin their shopping earlier, leading to a situation where Black Friday now rivals Cyber Monday in importance.
The online retail landscape presents a “mixed picture.” Amazon continues to dominate with a substantial share of online spending, though it has not yet released specific holiday shopping statistics. The tech giant had previously promoted “millions of deals” throughout its Black Friday Week.
Bank of America Securities analyst Michael McGovern observed that third-party data offered a varied outlook for small to mid-sized e-commerce companies. While Black Friday saw a healthy 9% growth as per Adobe data, Salesforce recorded a mere 3% growth—one of the lowest since 2020. Despite this variability, specific product categories such as home goods and pet supplies demonstrated robust performance.
Interestingly, the rise of generative AI technologies played a significant role in shaping shopping behaviors. Adobe reported a staggering 670% increase in AI-driven traffic to U.S. retail websites on Cyber Monday and a 760% increase from the beginning of November to December 1, compared to the previous year. Although the user base is still relatively small, the potential of AI in shaping consumer experiences is garnering attention on Wall Street. OpenAI has introduced features allowing purchases directly through its ChatGPT platform, with partnerships already formed with Etsy and Shopify. Walmart’s announcement of a similar partnership earlier in October saw its stock rise by 5%.
McGovern suggested that the growth of AI-driven shopping could be beneficial for platforms like Etsy. Although immediate impacts on gross merchandise value may be limited, positive developments regarding OpenAI partnerships could fuel interest during earnings reports. Notably, shoppers influenced by AI were found to be 38% more likely to make purchases than those coming through traditional traffic sources.
In stock market movements, Amazon’s shares rose 1%, while eBay and Etsy saw declines. Shopify experienced a 4% rebound after facing setbacks due to platform outages. The company reported record sales of $14.6 billion from Black Friday through Cyber Monday, reflecting a 27% year-over-year increase. Meanwhile, Wayfair’s stock dropped by 5%, and Chewy declined by 3%.
Overall, as consumer habits shift and the e-commerce landscape evolves, the interplay between traditional retail strategies and emerging technologies like AI is likely to define the future of online shopping.
