E-commerce Sector Rises on Record Black Friday Online Sales
Shoppers spent a record $10.8 billion online, signaling robust consumer health and a strong start to the critical holiday retail season.
U.S. consumers kicked off the holiday shopping season with record-breaking force, spending an unprecedented $10.8 billion online on Black Friday, a 10.2% increase from the previous year. The robust performance provided a significant lift to the e-commerce sector, signaling resilient consumer demand despite lingering economic headwinds and fueling optimism for a strong fourth quarter.
The momentum continued into the following week, with Cyber Monday setting another all-time high of $13.3 billion in online spending, according to data from Adobe Analytics. The figures suggest that retailers’ strategic discounting and streamlined mobile shopping experiences are successfully converting browsing into sales.
Investor sentiment responded positively to the initial data. Shares of e-commerce giant Amazon (AMZN) climbed 1.77% in the trading session following the reports, reflecting its central role in online retail. Shopify (SHOP), a platform that powers hundreds of thousands of online businesses, also saw heightened investor interest as the strong sales figures pointed to a healthy ecosystem for its merchants.
Further data from Mastercard SpendingPulse, which measures in-store and online retail sales across all payment types, corroborated the trend, showing that overall holiday retail sales grew 3.8% while online sales jumped 6.7% year-over-year. This underscores a persistent shift in consumer behavior toward digital channels.
Several factors appear to be driving the surge in online activity. Mobile shopping has become the dominant method for consumers, accounting for over 55% of all online sales on Black Friday. The increasing adoption of Buy Now, Pay Later (BNPL) services also played a pivotal role, enabling shoppers to manage larger purchases by spreading payments over time. BNPL transactions accounted for $18.2 billion in online spending for the full holiday season, a 9.6% increase from the prior year.
Analysts are viewing the strong start as a key indicator of consumer health and a positive catalyst for fourth-quarter earnings. The performance suggests that despite inflation and higher interest rates, households are still prioritizing holiday spending, particularly when presented with compelling online discounts.
As the holiday season progresses, the market will be watching to see if this early momentum can be sustained. However, the record-breaking Black Friday and Cyber Monday results have set a decidedly bullish tone for the e-commerce landscape, confirming its central position in the modern retail economy.