Small Businesses Celebrate a New Holiday Record

November 30, 2018

Small Businesses Celebrate a New Holiday Record | Magento Blog

Black Friday through Cyber Monday 2018 will go down in history as the most successful holiday shopping period ever. Data from Adobe Analytics revealed that a record $6.22 billion was spent online by the end of Black Friday. That’s an increase of 23.6 percent from last year. And get this: more than $2 billion of those sales came from smartphones. Meanwhile, reported that in-store mayhem appeared less than in prior years, a sign that retailers are successfully bridging their online and offline retail operations. As Thursday turned into Black Friday, Click-and-Collect orders grew by 73 percent. And the end of Cyber Monday, a record $7.9 billion had been spent online, making this the largest online shopping day of all time in the United States.

But it wasn’t just the major retailers who were celebrating.

Small Business Success

They say a rising tide lifts all ships, and small businesses were also rejoicing on Saturday. This holiday period, smaller retailers were 8.6 percent better than large ones ($1 billion or more in annual eCommerce revenue) at getting visitors to fill shopping carts, resulting in a record-breaking holiday period. Overall, customers spent a whopping $3.05 billion on Small Business Saturday. This holiday season was also the first time we’ve seen $1 billion in sales coming from smartphones alone on Small Business Saturday, up a staggering 58.8 percent on last year.

  • Mobile Shopping: Overall, online shopping on mobile devices saw a significant spike, representing 64.4% of site visits (55.2% smartphones, 9.2% tablets), up 13.5% YoY, and 45% of revenue (34.6% smartphones, 10.4% tablets) – a collective 13.9% YOY Increase.

  • Main Sales Drivers: On Small Business Saturday, direct website traffic ranked highest for driving revenue at 27.1% share of sales (up 0.7% YoY), followed by paid search at 24.1% (up 6.2% YoY), natural search at 20.6% (down 5.3%), and email at 20.6% (up 2.0%). While social media saw the greatest growth at 22.3% it continued to have minimal impact on online sales, at a 1.5% share. 

  • Conversion: While desktop conversion was strong at 5.5%, it was down slightly (-1.68% YoY). Conversely, smartphone conversion was up 10.21% to 2.7% showing that small businesses are making improvements to their mobile experiences. However, compared to large retailers ($1 billion or more in annual eCommerce revenue) smaller merchants are still lagging behind their larger counterparts who converted their smartphone visits into purchases 7% more often than the smaller retailers. For practical tips on how to improve mobile conversion, check out the Mobile Optimization Initiative led by the Magento community.

The takeaway? Mobile shopping is here to stay. It’s time to optimize for mobile, invest in PWAs, and get ready for next year’s Mobile Madness.

About this data: Adobe’s retail report is the most comprehensive set of insights of its kind in the industry based, on the analysis of over 1 trillion visits to retail sites, and 55 million SKUs. Adobe Analytics measures transactions from 80 of the top 100 U.S. online retailers—more than any other technology company. You can see real-time data updates here.