Breaking Down Cyber 5 Insights for Omnichannel Retailers

Cyber 5 2024 (Thanksgiving through Cyber Monday) was nothing short of monumental for the e-commerce industry. I just wrapped up a new episode of?Commerce Today, where I unpacked the latest numbers, emerging trends, and actionable strategies to navigate the remainder of the holiday season. If you’re in retail—whether online, in-store, or omnichannel—you’ll want to dig into these insights to maximize sales and plan for a stronger 2025.

Let’s dive into what we learned from Cyber 5 and how you can apply these lessons.

Cyber 5 2024: Record Numbers & Key Insights

Cyber 5 once again shattered records, solidifying its place as the centerpiece of the holiday shopping season.

Cyber 5 by the Numbers

• $41.1 billion in online sales:?An 8.4% increase YoY, demonstrating robust consumer demand despite ongoing inflation concerns.
• Thanksgiving Day:?$6.1 billion, up 8.7% YoY—a strong showing as more consumers embraced post-dinner shopping.
• Black Friday:?$10.8 billion, growing 10% YoY.
• Small Business Saturday:?$5.3 billion, highlighting the importance of localized campaigns and niche product offerings.
• Sunday:?$5.6 billion, showing steady performance as retailers extended their promotions.
• Cyber Monday:?$13.3 billion—a new record as the biggest single shopping day of the year, driven by heavy discounting and BNPL options.

Breaking Down the Trends

Here’s what stood out in this year’s Cyber 5:

1. Mobile Commerce: The Undisputed Leader

Mobile commerce has become the backbone of online shopping, accounting for 53% of all online holiday sales. That’s $21.8 billion of purchases made on smartphones or tablets. This aligns with consumer demand for convenience, especially from Gen Z and millennial shoppers who expect seamless mobile experiences.

Detail to Note:?Adobe Analytics reported a sharp rise in mobile average order values (AOVs), crossing $87 on Black Friday, a 6% increase YoY. This highlights not just increased volume but also a higher willingness to spend on mobile.

2. Buy Now, Pay Later (BNPL): New Records

Consumers turned to BNPL solutions in record numbers, with $9.4 billion in BNPL-facilitated transactions across Cyber 5. Cyber Monday alone saw $993 million in BNPL spending, marking a pivotal shift toward more flexible payment solutions.

Why It Matters:?BNPL isn’t just about affordability—it’s a driver of larger basket sizes. Retailers offering BNPL saw an average cart value increase of 30%, according to recent surveys.

3. Discounts: Finding the Sweet Spot

Shoppers hunted for deals, with discounts ranging up to:

• 30% on electronics,?driving massive demand for gaming consoles and accessories.
• 27% on toys
• 24% on TVs,?a category that continues to thrive despite inflation.

While discounts were essential, aggressive markdowns of over 50% hurt profitability for some retailers, eroding trust in original pricing.

4. Smaller In-Store Crowds

In-store foot traffic declined 3.2% nationwide, a stark reminder that e-commerce is absorbing more of the holiday shopping pie. Retailers in the Midwest and South saw even steeper drops, with some reporting declines exceeding 7%. Omnichannel strategies, such as BOPIS (buy online, pick up in store), partially offset this trend.

Opportunities for Retailers

Cyber 5 isn’t just about breaking sales records; it’s a window into where consumer behaviors are heading.

1. Embrace Mobile-First

With over half of sales coming from mobile, it’s no longer optional to have a fast, responsive mobile experience. Poor load times or clunky navigation can mean the difference between a sale and an abandoned cart.

Action Step:?Test your site on multiple devices. Does it load in under 3 seconds? Is the checkout process streamlined? Look for friction points.

2. Focus on Flexible Payments

BNPL isn’t just a trend—it’s here to stay. Younger consumers, particularly millennials and Gen Z, are driving its adoption.

Action Step:?Integrate BNPL solutions if you haven’t already. Providers like Klarna, Afterpay, and Affirm make setup straightforward and can boost conversions.

3. Prepare for Omnichannel Excellence

Omnichannel isn’t just a buzzword—it’s a necessity. Consumers expect to move seamlessly between online and in-store experiences.

Action Step:?Ensure your inventory is updated in real-time across channels. Offer features like online reservations and in-store maps to bridge the gap between digital and physical shopping.

Challenges Retailers Must Address

While Cyber 5 offered plenty of opportunities, it also revealed critical pain points.

1. Strained Supply Chains

Weather delays, labor shortages, and port congestion created hurdles for many retailers. Brands that lacked visibility into their supply chains struggled to meet delivery promises.

2. Rising Customer Expectations

Today’s shopper expects a frictionless experience. Even minor inconveniences—like slow support response times—can lead to lost sales and negative reviews.

3. Sustainability Demands

Younger generations want transparency in sourcing and fulfillment. Retailers that can’t demonstrate sustainability risk losing this influential segment.

Looking Ahead: What Cyber 5 Tells Us About 2025

Cyber 5 isn’t just about this year—it’s a roadmap for where retail is going in 2025.

1. Data-Driven Personalization

The brands that stood out this year were those that made every customer feel like their experience was tailored. AI-driven recommendations and dynamic pricing strategies were major contributors to success.

2. The Growing Power of AI

AI isn’t just for personalization. Retailers are using it for inventory forecasting, supply chain optimization, and even automating customer support.

Example:?One major retailer used AI to predict high-demand products during Cyber 5, enabling them to pre-position inventory and avoid stockouts.

3. The Shift Toward Experience Over Products

Shoppers are increasingly choosing brands that offer engaging, community-driven experiences. This might mean live-streamed shopping events, influencer partnerships, or gamified loyalty programs.

Final Thoughts: Make the Most of 2024

As we head into December, here’s what you can do right now:

• Extend Promotions Thoughtfully:?Leverage extended discounts but don’t overdo it. Segment your audience and target specific groups with personalized offers.
• Audit Your Mobile Experience:?Cyber 5 was dominated by mobile shopping. Ensure your site can handle the traffic and provide a fast, frictionless experience.
• Focus on Data:?Use insights from Cyber 5 to adjust inventory and marketing for the final weeks of the season.
• Stay Agile:?Whether it’s supply chain disruptions or last-minute trends, flexibility is key to thriving during the holiday season.

Let’s Talk: How Did Cyber 5 Go for You?

How did your brand perform during Cyber 5? What challenges did you face, and how are you adapting for the rest of the holiday season? Let’s share insights and strategies to help each other succeed.

Drop your thoughts in the comments or send me a message—I’d love to hear from you.

Happy Holidays!