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Cyber Monday Expected to See Consumers Spend $2.5 Billion

Cyber Monday Expected to See Consumers Spend $2.5 Billion

By Associated Press | Updated: 1 December 2014 09:11 IST

After a busy holiday weekend in shopping malls, millions of Americans are expected to log on and keep shopping on the day dubbed Cyber Monday.

That day, the Monday after Thanksgiving, has been the biggest online shopping day of the year since 2010. The day could take on added importance after a Thanksgiving weekend that saw fewer shoppers and lower spending than last year, according to some estimates.

Retailers have been pushing deals all month and particularly the past week, hoping to spur customers to spend. That may have taken away some spending from Thanksgiving weekend.

Research firm comScore expects people to spend about $2.5 billion (roughly Rs. 15,560 crores) on Cyber Monday.

There's reason to think a lot of dollars are migrating online.

PayPal said its global mobile payment volume jumped 47 percent on Thanksgiving Day compared with last year. Wal-Mart said it had more than 500 million page views on Thanksgiving, and eBay says it sold 2,000 iPad Air 2 tablets for $399 (roughly Rs. 24,700) at a rate of one a second.

Amazon has been offering special deals since Nov. 21, adding new discounts as often as every 10 minutes for eight days straight. Deals include up to 45 percent off some Samsung TVs and 28 percent off Beats by Dre headphones, selling for $275 (roughly Rs. 17,000).

Wal-Mart said it has doubled its Cyber Week deals to 500 compared with last year, including up to half off some TVs, tablets and toys with free-shipping offers.

Toys R Us is offering online deals for 11 days that began the Wednesday before Thanksgiving, and also has free-shipping offers. Cyberdeals include $15 (roughly Rs. 930) off Disney "Frozen" Princess dolls that are regularly $50 (roughly Rs. 3,100) and $20 (roughly Rs. 1,200) off a Teenage Mutant Ninja Turtles Battroborg Electronic Battle Game that is usually $80 (roughly Rs. 4,900).

The name "Cyber Monday" was coined in 2005 by the National Retail Federation's online arm, Shop.org, to encourage people to shop online. After retailers revved up deals for the day, it became the busiest online shopping day in 2010. The name was also a nod to online shopping being done at work, where faster connections made it easier to browse, less of a factor now.

Cyber Monday comes after a weekend that saw 5.3 percent fewer shoppers and 11 percent less spending, according to estimates by the National Retail Federation.

"Online is nowhere near its maturity, so Cyber Monday should be big, with a lot of strength in the days leading up to it," Forester Research analyst Sucharita Mulpuru said. "More consumers are spending more shopping dollars online."

She expects two spikes in online shopping: one during the long Thanksgiving weekend, including Cyber Monday, and one later in December when shipping deadlines to get items by Christmas start to hit.

Research firm comScore expects online sales to rise 16 percent to $61 billion (roughly Rs. 3,79,664 crores) during the November and December shopping season, up 16 percent from last year. ComScore tracks U.S. online sales based on observed behavior of a representative U.S. consumer panel of 2 million Web users.

The National Retail Federation has forecast overall holiday sales will increase 4.1 percent to $616.9 billion (roughly Rs. 38,39,591 crores) in 2014.

Even shoppers who braved the stores over the weekend weren't shy about how much they like shopping online.

Jennifer Donaldson, a 47-year-old property manager, dropped in at Macy's at New York City's Fulton Street Mall on Sunday, although she usually does her shopping online.

"It's crowded, and people are rude," she said of stores.

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