Amazon saw biggest shopping day ever last weekend
Last (long) weekend was a milestone on the Ecommerce calendar. Encompassing Thanksgiving Day, Black Friday, and Cyber Monday, it’s always a big one – but this year, it was unprecedented. According to Amazon, multiple records were broken over the five-day period, which saw consumers buy millions more products than they did over the comparable five days in 2017.
Jeff Wilke, CEO of Amazon worldwide consumer, said: “Black Friday and Cyber Monday continue to break records on Amazon year-over-year, which tells us that customers love shopping for deals to kick off the holiday shopping season.”
Despite a tech backlash and worries over the China U.S. trade war, Amazon’s share price has risen by 33% so far this year
Source: Yahoo Finance
Amazon said that Cyber Monday was the most lucrative day ever in its 24-year history. On the day itself, customers reportedly bought “millions” more goods on Amazon than they have on any other day. A report from Adobe Analytics sheds some light on how big the day was: it says U.S. shoppers spent $7.8 billion on Monday alone – that’s an 18% hike from Cyber Monday 2017, which was heralded last year as a massive success.
Cyber Monday is just one day of five, however, and Amazon was keen to point out that the five-day period itself constituted a record-breaking start to the holiday season. Two factors should stand out particularly to investors:
First, the best-selling product on Amazon globally, over the whole weekend, was the new Echo Dot Alexa device. Amazon is the market leader in smart speakers, with as much as 70% market share in the U.S. and 32% worldwide. On both counts, they outpace rivals handily. There are a couple of reasons that Amazon is in this position, including ease-of-use and integration with its powerful retail and entertainment ecosystem. But one such reason is that the company got it right early on, while Google and others were stumbling. That means they’re defending market share. But record sales of the new Echo device painted a very positive picture of their continued strength in this market.
The second point of note is that Whole Foods broke its all-time record of turkeys sold at Thanksgiving. Amazon has worked hard to integrate the Whole Foods brand with its own ecommerce-facing public image, developing canny cross-platform marketing around special offers and its hugely successful Prime membership scheme. That Whole Foods has set a new record on a holiday renowned for its foodstuffs is a sign that the brand is in rude health, and Amazon’s efforts are paying off.
There’s much more to say: Amazon says it sold 18 million toys and 13 million fashion items over Black Friday and Cyber Monday combined. It also said that small-and-medium sized businesses on its ecommerce platform saw sales rise by 20%. No doubt more announcement and analysis will follow int eh coming week. But for now, one thing remains clear: the holiday weekend is a big deal, and year on year growth shows no signs of slowing down.
Dominion holds Amazon in its Global Trends Ecommerce Fund.
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