Spiking Black Friday sales defy financial strain amid inflation in 2023
Shopify, the popular e-commerce platform, has announced a significant surge in sales during the Black Friday/Cyber Monday weekend. The company reported a 24% increase in total sales across merchants globally, reaching an impressive $9.3 billion.
The top-performing countries for Shopify during this busy shopping period were the US, the UK, Australia, Canada, and Germany. In the US, online sales rose by 7.5% to $9.8 billion, according to Adobe Analytics.
The average cart price on Shopify during the weekend was $108.12, marking a nearly 6% increase compared to the average consumer spend last year. This growth in average cart price may be attributed to the rising cost of products, potentially a reflection of broader economic trends.
Despite the increase in sales and average cart prices, the total order numbers on Shopify grew at a slower pace, with a 17% year-on-year (YoY) increase, compared to the 24% growth in sales. This slower growth in order numbers could be a result of the increasing cost of products.
Interestingly, the number of cross-border orders on Shopify remained consistent, accounting for the same share of total orders as in the previous year at 15%. This suggests that despite the complexities of international trade, cross-border shopping remains a significant part of the Black Friday/Cyber Monday shopping experience.
A notable trend emerging during this period is the rise in buy now, pay later (BNPL) purchases. British consumers spent £475m through BNPL services during Black Friday, a 15.8% increase compared to the same period in 2022. This increase in BNPL purchases could be a signal of rising living costs.
The success of Shopify during Black Friday/Cyber Monday weekend can be attributed to a variety of factors. One key factor is the strategic pricing of products, which helps sellers offset the impact of tariffs and maintain profitability during peak sales events. This includes dynamic and market-specific pricing, transparent pricing and duty communication, price testing and bundling, strategic product selection, and margin protection against increased costs.
In essence, during Black Friday and Cyber Monday, pricing is a critical lever for cross-border ecommerce sellers to mitigate the effects of tariffs, optimize sales volumes, and maintain customer satisfaction amid increasingly complex international trade conditions.
As we move forward, it will be interesting to see how these trends continue to evolve in the world of e-commerce.
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