If retail stores seemed a little less crowded over the holiday weekend, tablets or smartphones are likely to blame, as the volume of e-commerce payments made via mobile devices surged during what some are now calling the "Cyber Five" shopping days from Thanksgiving Day through Cyber Monday.
The big jump in purchases through tablets and smartphones this holiday season is not surprising, considering major retailers are more readily embracing e-commerce and mobile devices as a way to increase sales and to counteract to so-called showrooming the practice of consumers checking out products at one retailer and using smartphones to comparison shop at other stores or make a final purchase from an online merchant, says Scott Strumello of New York- and London-based Auriemma Consulting Group.
"Mobile has a significant role to play now," Strumello says. "Originally, retailers werent quite sure about it, but now they are seeing it as a way to avoid losing a potential sale."
IBM reports that online shoppers made Cyber Monday the biggest online shopping day in history with a 20.6% increase in sales, with mobile sales leading the way with more than 17% of total sales, or an increase in mobile device use of 55.4% over last year.
Cyber Monday capped what turned out to be the highest five-day online shopping sales period on record, starting on Thanksgiving Day, according to IBM. Smartphones drove 19.7% of all online traffic compared to tablets at 11.5%, making it the browsing device of choice, IBM says.
However, tablets drove 11.7% of all online sales; more than double that of smartphones, which accounted for 5.5%. On average, IBM says, tablet users spent $126.30 per order, compared to smartphone users who spent $106.49. IBM did not provide total sales figures.
It wasn't just on Cyber Monday that mobile shopping surged shopping with mobile devices increased significantly on Black Friday, too, says Stacy General, a customer experience advocate at e-commerce giant PayPal.
"As consumers continue to look for ways to avoid waiting in lines, many are turning to their smartphones or tablets to make holiday purchases," General writes.
PayPal's activity data shows that twice as many consumers shopped through PayPal on their mobile devices on Black Friday this year than they did in 2012. Overall, global mobile payments volume for Black Friday 2013 increased 121% compared to Black Friday 2012, General says.
PayPal data shows that shoppers may also extend their shopping after a day at the mall, as most of the payments made through PayPal took place between 10 and 11 p.m. Eastern Standard Time on Black Friday.
Most other companies or associations monitoring e-commerce sales during the key stretch that opens the holiday shopping season indicate that consumers used tablets and smartphones for nearly half of all online purchases.
ComScore, a research firm that tracks digital technology, proclaimed Black Friday as the first billion-dollar-plus day of the holiday season for desktop online shopping at $1.2 billion, or a 15% improvement over last years $1.04 billion. And Visa Inc. reported that its accountholders spent $2.6 billion in e-commerce sales on Cyber Monday through smartphones, tablets or PCs, marking a 28% increase over last year.
The holiday seasons heavy shopping days provide "a learning experience" for both retailers and consumers about the best ways to shop online or through mobile devices, Strumello says.
Purchases through mobile devices represent a "channel that is here to stay," as retailers and wallet providers will now look at the data from the holiday shopping season and determine how best to make such technology trends carry over year-round, Strumello says.
But retailers must continue to provide highly available and easy-to-use websites, says Aaron Rudger, senior manager of Web performance at San Mateo, Calif.-based Keynote Systems.
Keynote monitors the speed of online transactions, citing it as a key factor for consumers using desktop or mobile devices during the holiday cybershopping spree. In a survey of consumers in 2012, Keynote found that the majority of smartphone users expect delivery of a Web page in four seconds or less, and tablet users cited three seconds or less.
Ultimately, consumers using a mobile device to "go through the journey of finding the right product and initiating a transaction," would like to see it completed in about 15 seconds, Rudger says.
"The switching costs for consumers on Cyber Monday to go from one site to another is extremely low," Rudger says. "If they cant find a product on one site, or get delayed, they can easily switch over to another site."
Such a scenario can cause problems for retailers who experience delays on their sites because of heavy traffic, Rudger adds.
"This is not like the government healthcare site, which was the only game in town, and the consumer will endure that," Rudger says. "The retail space is very competitive, and the consumer will just go away [if not happy]."
Keynote reported Dec. 3 that various retail sites suffered slowdowns during the heavy Cyber Monday shopping periods, but shoppers ultimately found ways to get in record-breaking online purchases.
Such rhetoric and results are likely to be music to the ears of Google and Isis for their mobile wallet services, as well as retailers in the Merchant Customer Exchange initiative that are still working on a model for a common payments and mobile commerce service.
"It is an opportunity because as consumers go through this online journey, they want speed in payment," Rudger says. "The mobile payment providers can do that quickly."
San Jose, Calif.-based Adobe released its digital index online shopping data over the weekend, revealing that Thanksgiving Day and Black Friday saw record online sales with $1.062 billion and $1.93 billion, respectively. For the first time, more than 24 % of online sales occurred on smartphones and tablets, a record increase of 118% year-over-year.
Apple-brand smartphone and tablets drove more than $543 million dollars in online sales, with iPad taking a 77% share of activity, Adobe says. Android-based devices were responsible for $148 million in online sales, a nearly 5% share of mobile driven online sales.
"Online shopping data shows that consumers took full advantage of their mobile devices to shop on Thanksgiving Day and omnishop while in stores on Black Friday," Tamara Gaffney, principal analyst for Adobe Digital Index, states in a press release.
"In an attempt to play every angle possible, retailers poured money into new mobile capabilities by adding Wi-Fi to key stores, expanding mobile app offerings, and optimizing websites for easier transactions from small screens," Gaffney says.
The results were record online sales driven by tablets and smartphones this year, Gaffney adds.
Adobe also found that Amazon, iPad, the National Football League and Sony PlayStation 4 were the top brands generating social media traffic. Amazon was the most referenced retailer, with close to 450,000 posts.
Its an important facet leading to payments, Adobe says, because "thoughts of shopping overshadowed the holiday itself, as social conversations containing the term Black Friday received more mentions than Thanksgiving Day."
Seattle-based Mercent, a technology company specializing in online advertising and promotions for large retailers, says retail sales were strong on Cyber Monday for retailers using its services. The companys eCommerce Performance Index indicates e-commerce sales grew 33% on a same-seller basis over last years Cyber Monday.
Google Shopping outpaced Amazon same-seller sales during the Thanksgiving-Black Friday period. Savvy shoppers continue to leverage full tablet and smartphone capabilities to ensure they are getting the best deals while shopping both on and offline, Mercent says.
"Google continues to invest in the retail sector offering more engaging shopping tools that enable consumers to efficiently research and shop through Google," Eric Best, chairman and CEO of Mercent, states in a press release.
Retail sales figures show Googles investments position the search-engine giant as a formidable competitor to other leading channels, including Amazon.com, Best says.