Despite high inflation trends and fears of a possible recession, shoppers on Cyber Monday and Black Friday spent online at record levels amid a series of deep discounts, thanks in part to buy now, pay apps after (BNPL).
BNPL Apps work with retailers to make it easier for consumers to buy products online and then pay for them over time. According to Adobe Analytics, BNPL orders increased by 78% from November 19th to 25th compared to the previous week. The company tracks more than 85% of the top 100 Internet retailers in the United States.
Around 40% of consumers stated that they will finance one or more of their holiday purchases this year using credit cards, personal loans and BNPL applications, among others. According to a study by LendingTree and PYMTS.
And consumers are more likely to finance their purchases as their financial burden increases. About 52% of people who reported paycheck to paycheck or are struggling to pay their bills plan to finance holiday expenses.
Record Thanksgiving Sales
Consumers shopping online spent a record $11.3 billion on Cyber Monday, 5.8% more than the same day last year, according to Adobe Analytics, more than 85% of the top 100 US Internet retailers who spent on Black Friday. hit $9.12 billion, up 2.3% from last year’s Black Friday.
Meanwhile, shoppers returned to stores in record numbers over the holiday weekend. From Thanksgiving to Cyber Monday, 19.7 million shoppers went back to shopping in person, according to the National Retail Federation.
Overall, across both online and in-person purchases, a record 196.7 shoppers made purchases during this five-day period, up 9% from the same period last year. The NRF expected 166.3 million buyers.
“Consumers have responded to continued inflationary pressures by draining their dollars in every way possible”, NRF President and CEO Matthew Shay said in a statement. “Retailers have responded accordingly, offering shoppers a season of shopping convenience by aligning sales and promotions across online and in-store channels.”