Online Shoppers Drive 5% Increase in Black Friday Spending Amid Holiday Bargain Hunt

Black Friday E-commerce Sales Rise 5% as Shoppers Hunt for Holiday Deals

Black Friday 2024 saw online shoppers spending nearly four times the average daily amount, pushing e-commerce sales up by 5% compared to last year, according to data from commerce protection company Signifyd. While the annual shopping event continues to deliver record-breaking sales, emerging trends reveal shifting consumer behaviors and retail strategies.

Key Insights from Signifyd’s Holiday Season Pulse Data:

  • Discount Dynamics: Only 31% of products sold on Black Friday were at their lowest price of the year, suggesting the era of unbeatable “doorbuster” deals may be waning.
  • Shifting Spending Habits: Shoppers traded down by spending less per item while buying more. For instance, luxury goods sales rose 14%, but the average price per item dropped by 13%.
  • Increased Discount Usage: Discounts were applied to 40% of orders, up from 38% last year, with average discounts climbing two percentage points to 29.3%.

“Consumers remain focused on value, prioritizing deals and discounts during this year’s Cyber Five,” said Phelim Killough, Senior Data Analyst at Signifyd. “Retailers are nearing the limits of what they can offer, with only about one-third of items reaching their lowest prices on Black Friday.”

Expanding Holiday Shopping Season

The holiday shopping timeline continues to stretch beyond traditional boundaries. Nearly a third of consumers reported starting their holiday shopping between July and October, according to Gartner. Signifyd data shows e-commerce sales during the week before Thanksgiving increased by 15.2% year-over-year.

While Black Friday remains a cornerstone of holiday shopping, the proliferation of year-round shopping events by major retailers like Walmart, Target, and Amazon has diversified consumer spending patterns.

Performance by Category

Certain categories outperformed expectations, while others lagged:

  • Growth Sectors: General merchandise sales surged by 17%, luxury goods by 14%, and grocery by 11%.
  • Underperformers: Electronics dropped 6%, and beauty and cosmetics fell 17% year-over-year.

Black Friday Sales Comparison by Category

Category% Change in Sales (YoY)
General Merchandise+17%
Luxury Goods+14%
Grocery+11%
Leisure & Outdoor+9%
Home Goods+7%
Fashion & Apparel+3%
Electronics-6%
Beauty & Cosmetics-17%

Despite a slightly lower-than-projected 5% growth for Black Friday, Signifyd expects overall holiday season e-commerce sales to rise by 7%, aligning with earlier forecasts.

Methodology

The insights are derived from Signifyd’s Holiday Season Pulse Tracker, which analyzes data from thousands of e-commerce retailers within its Commerce Network. This platform utilizes AI-driven machine learning models and data from billions of transactions to identify consumer behavior trends, reduce fraud, and maximize retailer conversion rates.

About Signifyd

Signifyd provides an end-to-end Commerce Protection Platform, helping retailers optimize conversions, enhance customer experiences, and combat fraud. Headquartered in San Jose, CA, with offices worldwide, Signifyd supports top e-commerce brands through its innovative Commerce Network.

For more information, visit Signifyd.

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