How Does Cyber Monday Affect the Economy?

How Does Cyber Monday Affect the Economy?

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    Alvexo Blog Cyber Monday

    November 30, 2015, is this year’s Cyber Monday. It is the first Monday coming after Thanksgiving. It is estimated that close to 75 percent of shoppers dive into shopping in the morning of this Monday while 25 percent shop during the lunch time.

    About 34 percent of shoppers go shopping online Monday night. Not many people explore the Cyber Monday sales after that day, with only 19 percent shopping during the rest of the week.

    Close to a third of shoppers are now beginning their Cyber Monday shopping on Sunday.

    In the past, people relied mostly on work computers to access fast Internet speeds, but now, with the popularity of handheld devices and personal laptops that have equally fast Internet speeds, shoppers can begin to shop early, even before the big day.

    Most online retailers are now starting their Cyber Monday sales deals earlier, something that allows shoppers to begin their shopping experience in advance. Top stores including Amazon, Wal-Mart, and Target tend to start Cyber week sales right on Thanksgiving Day.

    Cyber Monday applies the same principle as Black Friday only that it occurs online. Most customers are able to take advantage of the deals right at the comfort of their homes. Cyber Monday’s origin can be traced back close to more than a decade when the use of high-speed Internet started especially at workplaces. People wanted to buy those things they may have seen in shopping malls over the weekend following Thanksgiving Day.

    Why Cyber Monday has become so popular

    While Black Friday is becoming less popular, on the flip side, Cyber Monday is advancing in its popularity. Cyber Monday shoppers have drawn a fine line about why they are so obsessed with the day.

    In excess of 40 percent of the time-strapped shoppers feel that the 24-hour convenience gives them an edge to take advantage of the deals. Almost as many shoppers have said that they like Cyber Monday because they are able to avoid the crowd scenes witnessed during Black Friday. Shoppers can also compare prices online.

    The strong online presence that has been created by retailers has shown huge results on Cyber Monday. About 90 percent of retailers offer cyber Monday sales meaning that no retail store wants to be left out. Close to half of retailers offer coupons or some percent of deals.

    Retailers also tend to increase their free shipping expenses while about one-third offer free shipping to customers, even earlier than ever. The retailers are trying to be smart and learning the behavior of customers. Nearly 36 percent of shoppers who have been surveyed have said that they would shop more online if they find that shipping is free.

    The Cyber Monday sales have been growing steadily and they have more than tripled from 2009. In 2009, a total of $0.889 billion were realized from Cyber Monday sales, a figure that rose to $2.5 billion in 2014.

    In 2013, the Cyber Monday sales rose by 20 percent compared to the previous year while Black Friday sales actually declined.

    How social media and mobile technology has influenced Cyber Monday

    Today, shoppers are more than ever using social media. Deal-hungry customers will share their findings about shopping deals with family and friends. Businesses are promoting their sales on social media networks like Twitter, Pinterest, Facebook, and Instagram. This encourages easy online sharing among customers.

    According to National Retail Federation Annual 2014, about one-third of shoppers have said that they visit a company’s Facebook page in order to get more information about deals running in Cyber Monday.

    Online retailers are now responding to shifting trends towards social media and mobile technology by shoppers. Nearly half of retailers have made their website designs responsive meaning they are optimized to work or be viewed on mobile devices.

    About 20 percent of retailers have optimized their website sales for tablet device apps. Not only that, more than one-third of retailers use QR codes in billboard and magazine ads. What’s more, online retailers have maxed out their social media use with nearly 75 percent saying that they promoted sales on their brand’s Facebook pages.

    More than 40 percent promoted their sales deals on Twitter.

    How can customers get the best deals for Cyber Monday?

    More than 800 online retailers feature their sales deals at CyberModay.com. Online retailers are using this website, which features a kind of schedule where retailers can offer their deals based on different times of the day, for instance, the “Deal of the Hour” promotion.

    Cyber Monday and the stock market

    Cyber Monday is the single most biggest day for retailers’ online sales that is likely to drive huge profits for the brands. When it comes to stocks, there may be no long-term effects just like the Black Friday. There is a likelihood that short-term changes in stocks do occur, but these may not spread over a long period. Stock buyers and sellers should therefore be cautious when they trade at this time.

     

     

     

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