More than 70% of Vizio’s TVs are already sold at Walmart, Reuters reported. The deal would give Walmart control over more than 20% of the U.S. TV market.

Following the report, Vizio shares jumped 36% before closing the day up 24.6%. Meanwhile, competitor Roku’s shares fell 9% on Tuesday.

Walmart is No. 2 in the Top 1000, Digital Commerce 360’s ranking of North America’s leading retailers by online sales. Vizio ranks No. 397. Walmart is also No. 9 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of the top 100 online marketplaces by gross merchandise value (GMV).

Walmart and Vizio did not respond to requests for comment.

Walmart and Vizio see an advertising opportunity

A deal with Vizio could be good for Walmart Connect, Walmart’s U.S. advertising business launched in 2021. Walmart could gain access to Vizio’s nearly 18 million active users, ad viewership data, and potentially the ability to track purchases to those ad views.

Walmart Connect generated about $3 billion in sales last year and is growing quickly. In a third-quarter earnings call, chief financial officer John David Rainey said sales increased 26% year over year. Rainey said advertising will likely continue to play a large role and drive Walmart’s profitability thanks to its higher margins as compared to groceries.

In March 2023, Walmart announced it would offer personalized ads on connected TVs through a partnership with advertising company Innovid. The ads used artificial intelligence (AI) to tailor messages to audiences.

The retailer previously partnered with Vizio’s rival Roku on shoppable ads in 2022. More recently, Walmart inked a deal with NBCUniversal in November to place shoppable ads on the streaming platform Peacock. The ads gave consumers the chance to buy Walmart items featured in select Bravo shows.

Vizio also ventured into shoppable ads with a branded content series with Home Depot last year.

Home Depot ranks No. 4 in the Top 1000.

In-store advertising

Vizio coming under the Walmart umbrella also presents an opportunity for displaying ads on TVs in Walmart stores. 

Walmart has a wider reach than the largest TV network, Ryan Mayward, senior vice president of retail media sales at Walmart Connect, said at the National Retail Federation’s Big Show in January. He explained that retailers are increasingly allocating their marketing budgets to in-store uses. Walmart is experimenting with new ways to advertise in stores, including on TV screens in the electronics section, on screens in the deli and bakery sections, and on self-checkout screens.

“Physical retail is the new TV” for advertisers in terms of scale, brand safety and reaching the right audience, said Andrew Lipsman, principal analyst of retail and ecommerce at Insider Intelligence.

Competition with Amazon

Acquiring a Smart TV manufacturer would put Walmart further in competition with Amazon. Amazon ranks No. 1 in the Top 1000, and No. 3 in the marketplaces database.

Amazon owns its own line of smart TVs, branded as Fire TV.  In 2023, Amazon crossed the threshold of 200 million Fire TV devices sold. The Fire TV stick was also the only Amazon product among the top five bestsellers on Prime Day this year, the online retailer said.

17% of connected TV operating systems are owned by Amazon, while 8% use Vizio’s OS. Roku has a larger market share than both at 25%, the WSJ reported.

Amazon also has its own advertising business, which generated $24.65 billion in the fourth fiscal quarter of 2023. Amazon’s ad sales were about 10 times the size of Walmart’s in 2023.

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The tech company calls the wearable device a “revolutionary spatial computer that seamlessly blends digital content with the physical world.” It’s Apple’s first entry into a new product category since it launched the Apple Watch in 2014. The Vision Pro retails for $3,499. MacRumors reported Apple sold 200,000 of the devices ahead of the launch.

Apple ranks No. 3 in the Top 1000, Digital Commerce 360’s ranking of the largest North American online retailers.

These are the top retailers that have announced plans to use the Vision Pro so far.

Lowe’s

Lowe’s announced the Lowe’s Style Studio, which allows consumers to use the Vision Pro to visualize kitchen designs. Vision Pro owners can download the app on the App Store, where they’ll be met with an immersive 3D kitchen. Then, they can choose from preset designs created by stylists, or create custom designs from their own selections of materials, fixtures, and appliances available at Lowe’s. There are nearly 80 billion possible combinations, the retailer said.

“Lowe’s Style Studio immerses our customers in a cutting-edge design experience enabled by spatial computing that will make home improvement easier than ever. I’m proud of our team for creating a powerful, immersive experience for Apple Vision Pro customers,” Seemantini Godbole,  executive vice president, chief digital and information officer, said in a statement.

Lowe’s Style Studio has nearly 80 billion possible combinations, the retailer said.

Lowe’s Style Studio was built by Lowe’s Innovation Labs. That’s the team behind augmented reality measurement tool Measure Your Space and generative AI home improvement recommendation tool Lowe’s Product Expert.

Lowe’s ranks No. 12 in the Top 1000.

J. Crew

J. Crew also announced an app for the Apple Vision Pro with immersive shopping company Obsess. The app will serve as a virtual closet for J. Crew customers, who can view a curated selection of apparel. The Vision Pro has the ability to let consumers see texture at a higher magnification than on other platforms, the retailer said. With hand and eye movements, app users can mix and match pieces to create outfits and see them on a virtual mannequin.

Consumers can mix and match outfits from J. Crew’s catalog.

“The ability to create outfit combinations for different occasions interactively and at a life-size scale in the J. Crew Virtual Closet app is a novel ecommerce utility. In addition, the ability for a J. Crew stylist to style outfits remotely with a customer via SharePlay is the most advanced form of digital clienteling available today,” CEO and founder of Obsess Neha Singh said in a statement.

Consumers can book style consultations beginning in February.

J. Crew ranks No. 85 in the Top 1000.

E.l.f. Cosmetics

E.l.f.’s Vision Pro app is called “your best e.l.f.” Consumers can shop for e.l.f. products within the app and check out with Apple Pay. Users are invited to “Glow inside three unique sensory experiences inspired by our holy grail products.” The three experiences are based on Camo Cove, Big Mood and Halo Glow, all available for purchase within the app. In each setting, users can take part in “relaxing activities” including guided meditation and paint-by-numbers, the retailer said.

“Partnering with Obsess to launch one of the first beauty shopping apps for Apple Vision Pro is an evolution for our brand, which has always been digitally led. We are champions for innovation and new technology platforms. The decision to launch on Apple Vision Pro is not only natural for us; it is critical to continue to meet our community — and entertain them — wherever they are,” Ekta Chopra, e.l.f. chief digital officer, said in a statement.

E.l.f. Ranks No. 951 in the Top 1000.

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“TikTok is a great way to get Newegg in front of people who have not shopped from Newegg before,” director of Newegg studios Drew Roder said.

With the marketplace poised to take on a bigger role in ecommerce in 2024, other retailers are considering whether to join and how to best leverage it.

Newegg is No. 57 in the Top 1000. The Top 1000 database is Digital Commerce 360’s ranking of the largest North American online retailers by web sales. 

The rise of TikTok Shop

TikTok Shop launched in the U.S. in September 2023 with more than 200,000 sellers and 100,000 creators sharing products through its affiliate program, a spokesperson said. 

TikTok Shop is accessible through shoppable videos fed to users through the “for you” page. Creators can tag products in videos and live feeds that viewers can purchase directly within the app. TikTok users can buy products recommended by influencers and creators on the app, who make commissions based on sales they’ve promoted. It also has a “Shop” tab set up more like a traditional ecommerce website, and it offers a fulfillment service, too.

The ByteDance-owned marketplace hasn’t publicly released any total sales figures. In November alone, 5 million new customers made purchases through TikTok Shop during the marketplace’s holiday promotions, TikTok said. During that time, users made 262,000 shoppable short-form videos using Black Friday and Cyber Monday hashtags, leading to 2.51 billion views. Shoppable livestreams drove 22.8 billion views during that period.

TikTok has potential to continue playing a large role in shopping decisions, especially for younger female consumers. It has 150 million U.S. users.

“TikTok users have proven themselves to be voracious consumers,” Ellyn Briggs, brands analyst at Morning Consult, previously told Digital Commerce 360.

TikTok is essentially a shopping guide for consumers who are already primed to spend more than the average person, both in stores and online, Briggs says. It’s also a form of brand discovery for Gen Z, a group more likely to say it is open to purchasing from new brands than any other generation, at 77% based on the Morning Consult data.

Newegg’s experience on TikTok Shop

To grow its foothold, TikTok Shop launched in the U.S. with appealing terms for retailers. It offered free listing and zero commission to retailers who initially joined. Newegg was one of the early adopters, in part because of its positive history with live shopping.

Newegg was already generating millions in dollars in live shopping through TikTok and other streaming platforms before the launch of TikTok Shop, Roder said. The benefit of TikTok shop is that it compresses the purchase experiences, removing roadblocks from a potential customer’s journey.

“Someone can see a product introduced to them by the company that sells it and they don’t even have to go to another website. They can go from awareness to action, the whole funnel, in 30 seconds,” he said.

Gaming products, including controllers, are top sellers for Newegg on TikTok Shop.

Newegg’s top-selling products on TikTok have been gaming related, producer Ben Tibbels said. The retailer is best known for selling computer components, but TikTok Shop customers skew younger and toward gaming items, he said. Gaming controllers and other tools for co-op games have been very popular, he said.

Newegg customers were quick to adapt

Tibbels noted the relative ease with which TikTok users were willing to make purchases through the marketplace even as it was new.

“I don’t think that there was a hesitancy,” he said. “TikTok did some really attractive first-time buyer coupons and offers, and it very quickly became a strong place for people to shop.”

That was especially advantageous in Q4 of 2023 around the holidays, as consumers were drawn to TikTok-subsidized deals on the app.

The tech retailer’s TikTok Shop sales don’t rely solely on new customer discounts, though. 

“We still see repeat customers,” Roder said. “A lot of folks tune back in for specific hosts. They develop that emotional connection that isn’t always just with a product but it is also with their hosts.”

Newegg also takes requests from customers on item categories to bring into its TikTok Shop, he added. In other words, “engagement is the name of the game on TikTok,” he said. Newegg has a team dedicated to affiliate marketing, and it’s not unusual for employees to spend hours a day on the phone with creators discussing strategy and answering their questions. The strength of TikTok sales depends on the strength of their relationship with their audience, Roder said.

Other retailers’ TikTok Shop results vary

As a technology retailer, Newegg has to stay on top of emerging platforms like TikTok Shop, Roder said. Other retailers have found more mixed results. 

NightCap, the scrunchie designed to prevent spiked drinks, no longer sells on TikTok Shop. 

“In the beginning, TikTok Shop was great for us,” CEO and cofounder Shirah Benarde said.

At first, the app pushed NightCap’s videos out, and they regularly went viral. Then, as the marketplace became more saturated, views took a nosedive, she said. NightCap’s account would be flagged for violating rules like mentioning the word “website” or “Amazon,” she said. The account would be banned for 24 to 48 hours at a time after these instances. Ultimately, selling on TikTok Shop wasn’t viable for NightCap, which is focusing on its direct-to-consumer website and Amazon sales now, she said.

Meanwhile, Vera Bradley is taking a more cautious approach to TikTok Shop. The accessories retailer benefits from TikTok without directly needing to post, thanks to organic traffic from creators, chief marketing officer Alison Hiatt told Digital Commerce 360.

Videos with the “#VeraBradley” hashtag have 105 million views to date on the platform, leading to better brand awareness. It also works directly with influencers on posts.

“Most brands have to work with influencers in some form or fashion. I think it’ll continue to be a strong trend,” she said.

Joining TikTok Shop is one of Vera Bradley’s priorities for 2024.

“We know more and more people are discovering brands and interacting with their favorite brands” on TikTok, she said. “So why not just make it an easy experience if they find something that they want to buy via TikTok Shop?”

Vera Bradley ranks No. 277 in the Top 1000.

Where will TikTok Shop go in 2024?

TikTok reportedly has big plans to grow its ecommerce reach in the U.S. this year. A Bloomberg report found that TikTok aims to grow U.S. ecommerce sales to $17.5 billion in 2024. Even more videos could become shoppable, as the social media app is testing a feature that identifies and links products in any posts, not just those from influencers. TikTok previously confirmed it was using artificial intelligence (AI) to scan videos for products and suggest similar items available for purchase through its marketplace. 

Retailers will have to grapple with higher costs as TikTok’s initial promotions to attract sellers expire. The marketplace announced referral fees will increase to 6% in April, then grow again to 8% in July. 

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Nonstore sales, which are mainly online, increased by 7.0% year over year in December. That’s according to the advanced estimate in the December monthly retail sales report from the U.S. Commerce Department. Total retail sales, including both in-store and online, grew 3.1% year over year. Those figures are not adjusted for inflation or seasonality.

Nonstore sales also grew 8.4% in Q4 2023 and 8.0% for the whole year, down from 12.8% growth in 2022.

The ecommerce addressable portion of total retail sales, excluding restaurants, fuel, and automobiles, grew 3.9% in 2023, according to Digital Commerce 360’s analysis of Commerce Department data.

Online sales contribute to December spending

Nonstore sales grew again in December, although not as quickly as they did in November. In November and December combined, nonstore sales increased 8.2%. That was bolstered by a strong holiday season. U.S. online holiday spending reached $221.1 billion in 2023, according to Adobe Analytics. The majority of that spending happened in November, which included the Cyber 5 period. But the remaining $98.6 billion in U.S. online sales were recorded in December. Retailer sales that continued past Cyber Monday drove some of that December spending, Adobe says. Online spending for the holiday season, including November and December, grew 4.9% year over year, Adobe said.

“Retail sales were stronger than expected in December,” said Ted Rossman, senior industry analyst at Bankrate, in a research note. “Bars and restaurants, health and personal care stores, electronics and appliance stores and motor vehicle and parts dealers all notched double-digit year-over-year gains,” he said. Gas stations, furniture stores, department stores, and building material stores were the only notable weak spots, he added.

Weak sales at furniture and home improvement stores have become the norm in recent quarters as consumers experience a weak housing market and postpone moving, hurting demand in the category.

The National Retail Federation responds

December results show a promising end to the year, according to the organization. 

“Consumer spending was remarkably resilient throughout 2023 and finished the year with a solid pace for the holiday season,” National Retail Federation (NRF) chief economist Jack Kleinhenz said in a statement. “Although inflation has been the biggest concern for households, the price of goods eased notably and was helped by a healthy labor market, underscoring a successful holiday season for retailers.”

The NRF also put out its own December sales estimate, the CNBC/NRF Retail Monitor using credit card data from Affinity. The report found that online and nonstore sales grew 31.17% year over year in December. It also found total retail sales grew 5.32% over the same period.

Other holiday spending in 2023

“Consumer spending was remarkably strong during the holidays, continuing a year-long trend,” Rossman said.

Total holiday results, from Nov. 1 to Dec. 31, largely mirrored December results. Electronics and appliances stores saw the largest gain, up 9.3% over both months compared to 2022. Health and personal care store sales also grew, up 9.0%. 

Those two categories, alongside nonstore sales, recorded the widest growth by far. The next category by growth was apparel stores, with sales up 3%.

The Commerce Department reports overall retail sales, including nonstore sales, every month. It reports retail ecommerce sales quarterly, with the fourth-quarter ecommerce report due out Feb. 20.

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Signifyd provides fraud prevention services to web merchants. Its network includes 115 retailers in the 2023 Digital Commerce 360 Top 1000 ranking of North America’s leading online retailers. The vendor’s data comes from transactions across thousands of ecommerce websites and 600 million unique shoppers.

Average order value grew 3% year over year for the three-month holiday season, Signifyd found. Meanwhile, fraud attempts declined slightly, down 1%.

Online holiday spending habits

Online holiday shopping started early this year and continued strong through the end of the season, Signifyd found. That’s contrary to some predictions that early season sales would pull spending forward and December sales numbers would be modest. 

“Both we and our merchants were pleasantly surprised by the staying power of the consumer throughout what has typically been the peak holiday period,” Signifyd chief customer officer J. Bennett said in a statement. “This felt like a return to normalcy, with consumers waiting for better deals later in the season. When retailers ultimately offered those deals, consumers responded in a big way.” 

Spending resembled pre-COVID shopping patterns, peaking from mid-November to Dec. 20, Bennett said. 

Growth increased over the three months Signifyd counted as part of the holidays. October sales grew 4% year over year, November sales grew 8%, and December sales were up 11%, it found. That’s the opposite of the trajectory of Signifyd’s predictions of 7%, 5% and 3%, respectively.

Some of the December growth was due to late-season discounts, according to Siginifyd. 23% of all online sales in December used a discount code, a 14% increase from December 2022. 

Online sales by category

Online grocery sales recorded the largest year-over-year change in Q4, Signifyd found. They increased 24% over 2022 levels. Alcohol, tobacco and cannabis sales also showed a significant increase, up 19%. Leisure and outdoor sales grew 11% and electronics sales grew 9%. 

Signifyd also shared sales growth by category in December, the month with the largest year-over-year increase in online sales. Grocery again led growth, up 27% from online grocery sales in December 2022. Electronics were the next-highest category, growing 19% year over year. Leisure and outdoor and luxury sales grew 14% and 12%, respectively.

How do Signifyd’s results compare to other data?

Signifyd reported a larger increase in U.S. online holiday sales than Adobe Analytics. Adobe, however, measures a shorter holiday season encompassing November and December. It found that sales grew 4.9% year over year, based on 1 trillion visits to U.S. retail sites, 100 million SKUs and 18 categories. 

Signifyd’s findings aren’t far off from Adobe’s. Signifyd found that November online sales grew 8% year over year, while Adobe recorded a 6% increase.

Despite slightly different numbers, the technology companies noted many of the same categories driving growth. Signifyd names grocery as the top-growing category during its holiday period. Adobe found that grocery was the fourth-largest of its 18 categories, accounting for $19.1 billion in sales in November and December. Electronics sales also grew significantly in December, per Signifyd. Adobe found electronics were the largest single category over the holidays, responsible for $50.8 billion in sales.

Mastercard SpendingPulse reported a figure in the middle of Adobe’s and Signifyd’s. Online sales grew 6.3% between Nov. 1 and Dec. 24, the credit card company found.

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The holiday season encompasses online spending between Nov. 1 and Dec. 31 across 1 trillion visits to U.S. retail sites, 100 million SKUs and 18 categories. 

The majority of online holiday shopping happened in November, boosted by a strong Cyber 5. U.S. consumers spent $123.5 billion online in November, a 6% year-over-year increase. $38.0 billion of that spending took place between Thanksgiving and Cyber Monday, growing 7.8% over 2022.

The other $98.6 billion in U.S. online sales were recorded in December. Retailer sales that continued on past Cyber Monday drove some of that December spending, Adobe says.

Holiday spending by category

65% of online holiday spending in 2023 was in just five of the 18 categories Adobe tracks.

Top categories by online holiday spending:

• Electronics ($50.8 billion)
• Apparel ($41.5 billion)
• Furniture ($27.3 billion)
• Groceries ($19.1 billion)
• Toys ($7.7 billion)

TVs, smart speakers, tablets, Bluetooth headphones, and smart watches ranked among the most popular online purchases during the holiday period. Pajamas, sneakers, and cold-weather items like sweatshirts dominated apparel sales. Popular furniture purchases included barstools, throw pillows and Christmas decor.  

Aside from the top categories, skin care serums and moisturizers, vacuums, and small kitchen appliances were also top sellers, Adobe says.

Categories with the highest sales also recorded some of the largest discounts. Electronics discounts peaked at 31% off listed prices, followed by toys (28%) and apparel (24%).

Buy now, pay later (BNPL) in holiday spending

BNPL was used as a payment method in more online sales than ever this year, according to Adobe. It contributed $16.6 billion in online spending, an increase of 14% and $2.1 billion over the same period in 2022. U.S. consumers used BNPL for $9.2 billion in online purchases in November, up 17.5% year over year. Cyber Monday was the biggest BNPL day in history, accounting for $940 million in sales, up 42.5%.

“In an uncertain demand environment, retailers leaned on discounting and flexible payment methods to entice shoppers this holiday season,” Vivek Pandya, lead analyst at Adobe Digital Insights, said in a statement. “The strategy was effective, driving record spend online during big days like Cyber Monday and Black Friday, and a record 11 days that surpassed $4 billion in daily spend this season.”

The holiday season contributed to a huge year for BNPL use, accounting for $75 billion in online spending in 2023, up 14.3% from 2022.

Other holiday spending takeaways

Mobile shopping overtook desktop online sales for the first time in 2023. 51.1% of online sales across the holiday season were made via smartphones in 2023, up from 47% in 2022, Adobe says. Mobile sales peaked on Christmas Day at 65%, from 61% in 2022. Consumers made purchases on final holiday deals while spending time with friends and family, Adobe says.

Meanwhile, curbside pickup dipped slightly, though it still remains popular. It was used as a fulfillment method in 18.4% of online orders from retailers offering the option. That’s down from 21% in 2022. Usage peaked ahead of Christmas Eve on Dec. 22 and Dec. 23, accounting for 36.8% of orders during that time frame. Major retailers including Walmart and Target promoted their curbside capabilities through Christmas Eve.

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That data excludes automotive sales. Mastercard SpendingPulse says it measures in-store and online retail sales across all forms of payment and is not adjusted for inflation.

“This holiday season, the consumer showed up, spending in a deliberate manner,” said Michelle Meyer, chief economist at the Mastercard Economics Institute. “The economic backdrop remains favorable with healthy job creation and easing inflation pressures, empowering consumers to seek the goods and experiences they value most.”

Did online holiday sales grow in 2023?

Online holiday sales in 2023 grew from Nov. 1 through Christmas Eve, Mastercard found, and so did in-store sales.

And to give more detail, online retail spending increased at a faster pace than in-store spending. In-store sales grew 2.2% year over year, according to Mastercard SpendingPulse. Yet online retail sales increased 6.3% year over year in the same period, taking “a considerably larger portion of total retail spending.”

“Retailers started promotions early this season, giving consumers time to hunt for the best deals and promotions,” said Steve Sadove, senior advisor for Mastercard and former CEO and Chairman of Saks Incorporated. “Ultimately it was about getting the most bang for your buck as consumers spent on a variety of goods and services, resurfacing spending trends from before the pandemic.”

Online holiday sales growth by category

Mastercard SpendingPulse broke out year-over-year data for key retail categories. It did not differentiate online and in-store sales growth and declines. Instead, it provided year-over-year changes in total sales for each category.

Among the five categories it broke out, restaurants grew the most, at 7.8%. Apparel grew 2.4%, closely followed by grocery at 2.1%.

That grocery sales growth extended to web sales as well. Online sales accounted for 11.7% of total weekly grocery spending in the last week of November, according to data from the monthly Brick Meets Click and Mercatus Grocery Shopping Survey. United States online grocery sales reached $8.1 billion in November. That’s 5.2% growth over November 2022’s online grocery sales, which reached $7.7 billion.

Conversely, Mastercard found, electronics sales decreased 0.4% year over year, and jewelry sales decreased 2.0%.

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The data, from fraud management and chargeback protection services vendor ClearSale, found a decrease in attempted fraud between Black Friday and Cyber Monday. Notably, whereas ClearSale data showed attempts at fraud (or fraud avoided) decreased 37% year over year, order volume and order value also fell among the same group of online retailers.

Bruno Farinelli, senior director of risk at ClearSale, said there are a couple feasible possibilities for the decreases in order volume this year. The first is that many online retailers started their Cyber 5 sales and promotions weeks—and in some cases months—before the actual Black Friday weekend.

“This could have spread out the order volume that would normally happen in one weekend to a broader number of days,” Farinelli said. “The other very reasonable assumption that we could make is that the economic slowdown and the interest rate hikes in the U.S. and across the globe have seen shoppers more cautious in their spending and more frugal with their wallets during seasonal shopping.”

ClearSale’s network includes more than 35 online retailers in the Top 1000, including eight that rank among the largest 100 retailers. The Top 1000 is Digital Commerce 360’s database ranking the largest ecommerce retailers in North America based on their web sales. ClearSale ranks third in the Payment Security and Fraud Prevention category in Digital Commerce 360’s new report, 2024 Leading Vendors to the Top 1000 Retailers.

2024 Leading Vendors to the Top 1000 Retailers Report

Analysis of the leading vendors that serve North America's Top 1000 online retailers. Includes rankings of the Top 10 leading vendors across 24 categories, including Customer Relationship Management, Ecommerce Platforms, Fulfillment Services, Marketing Automation Platforms, and more.

View Details

Fraud decreases from Black Friday to Cyber Monday

ClearSale found that from Black Friday to Cyber Monday, order volume decreased 41% year over year. Order amount decreased, too, down 27% year over year.

The percentage of fraud attempts in relation to total orders also decreased slightly, according to information shared by ClearSale. It decreased to 1.5% of orders being fraud attempts during the Cyber 5 in 2023, from 1.75% last year.

“While fraud is extremely dynamic, economic pressure is one of the drivers behind it, which is why we are seeing a general increase over the last couple of years of attempted fraud in ecommerce,” Farinelli said.

As a rule of thumb, he said, an increase in order volume and value means an increase in fraud, and vice versa. This year’s data followed this formula, he said, but the overall rates of fraud are increasing.

Watches and glasses led as the categories with the highest percentage of fraud attempts during the 2023 Cyber 5, according to ClearSale. 12.83% of orders in the category were subjected to fraud attempts. The next-largest category was computers, at 4.84%. That’s about a third of the rate of the watches/glasses category.

The top categories of fraud attempts in 2023:

1. Watches/glasses: 12.83%
2. Computers: 4.84%
3. Phones/Electronics: 4.47%
4. Digital: 4.44%
5. Jewelry: 2.71%

Three of those categories were also in the top five last year, according to ClearSale data. However, none of the categories ClearSale tracked in 2022 reached 10% of its orders being fraudulent.

The top categories of fraud attempts in 2022:

1. Accessories: 7%
2. Computers: 5.49%
3. Jewelry: 4.56%
4. Phones/Electronics: 4.52%
5. Luxury apparel (over $200 ticket value): 3.14%

The computers, jewelry, and phones/electronics categories all remained in the top five this year. However, the rates of fraud for each decreased year over year, with the jewelry category’s fraud decreasing the most.

Data consistency

The decrease in fraud during the Cyber 5 is consistent with data from Signifyd, another cybersecurity vendor. Signifyd’s network includes 115 retailers in the Top 1000. It found that fraud attempts during the Cyber 5 decreased 20% year over year.

J. Bennett, chief customer officer at Signifyd, said that’s because last year, there was a big and sophisticated wave of fraud attempts engineered by a crime ring in Southeast Asia, and that has not been repeated this year.

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November retail sales excluding automobiles and gasoline grew 4.24% over November 2022, Retail Monitor data shows. Core retail sales, which also excludes restaurants, grew 4.17% in the same period. Both metrics demonstrated higher year-over-year growth than in October, showing that consumers are willing to spend for the holidays despite worries over inflation. 

“November Retail Monitor data shows that consumers are embracing the holiday season and promotions being offered by retailers,” the NRF President and CEO Matthew Shay said in a statement. “Value-conscious shoppers are out looking for deals as they purchase gifts for family and friends, and this data indicates that they’re finding them.”

The NRF predicted total holiday spending between November and December would grow 3%-4% year over year.

Online sales lead November

Online sales recorded the largest growth of any category measured by Retail Monitor, growing 26.27% year over year. Retail Monitor’s data comes from credit and debit card purchases from consumer data vendor Affinity Solutions. 

The U.S. Census Bureau also reported online sales growth outpacing total retail in November. Nonstore sales, which encompass online sales, grew 10.6% over 2022. That’s significantly higher than total retail sales, which grew 4.4% over the same period. 

November was a good month for online retailers. On Cyber Monday alone, U.S. consumers spent $12.4 billion online, according to Adobe Analytics. That’s an increase of 9.6% over the shopping day in 2022, surpassing Adobe’s prediction. 

Increases in online sales for the whole Cyber 5 period, from Thanksgiving through Cyber Monday, were more modest but still significant. Online sales over the key shopping days grew 7.8% year over year to $38.0 billion, per Adobe. They grew nearly twice as much as in 2022, when sales increased 4% over the previous year.

Other category results

Sales increased in seven of the nine categories tracked by Retail Monitor, although none saw the same levels of growth as online sales. 

Health and personal care sales grew 9.15% year over year, according to Retail Monitor, and 8.6% according to the Census Bureau. Sales of sporting goods, hobby items, music and books grew 8.25% in Retail Monitor’s Data, and just 0.3% based on Census Bureau findings. 

Apparel and accessories sales grew in both data sets, up 5.81% per Retail Monitor and 1.2% per the Census Bureau. Apparel was also the most popular online shopping category on Cyber Monday, with sales reaching 189% higher than an average day, according to Adobe.

Consumer electronics sales were less promising. Retail Monitor reports electronics and appliance sales grew just 0.1% year over year in November, while the Census Bureau reports that they declined 0.2%. Lackluster results are due to a relatively poor performance on Black Friday and Cyber Monday, according to consumer behavior research firm Circana.

“This year’s holiday tech consumers are more focused on the value of their purchase than just getting the lowest price,” says Paul Gagnon, consumer technology industry advisor for Circana. “Black Friday shoppers had a more leisurely shopping experience this year, with ample inventory to choose from as they took advantage of bargains on big-screen TVs, and opted for higher-priced computer purchases.” Electronic unit sales declined 3% year over year during Cyber Week, and dollar sales declined 4%, Circana found.

Retail Monitor recorded declining sales in building and garden supplies (down 0.06%) and furniture and home furnishings (down 2.08%). The Census Bureau also noted a decline of 5.5% annually in furnishings, likely a result of high mortgage rates and a sluggish real estate market.

The halfway point of the holiday sales season

November results give analysts and retailers an early look at how overall holiday sales might perform. 

“Since November makes up half the holiday season, these numbers are a positive indication of what we can expect for the full holiday season,” the NRF’s Shay says. 

Holiday sales so far are right on track with expectations, says Dipanjan Chatterjee, vice president and principal analyst at Forrester. Though consumers report low confidence and high anxiety about the state of the economy and their spending, other signs say things are looking up.

“Unemployment is low, pandemic-era savings haven’t entirely been drawn down, house values are high. This financial security continues to stimulate spending despite trepidations about an uncertain financial future,” Chatterjee told Digital Commerce 360.

Consumers are price resilient this year.

“The trick for retailers this holiday season is to sell without giving it away, knowing that the consumer is financially able to stretch,” Chatterjee says. “That is why we see retailers dialing back on sitewide sales and free shipping, and offering volume-based discounts to extract greater spending in return for a deal.”

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Online sales made up 30.6% of total domestic revenue, compared to 31.0% in the year-ago period. Total domestic revenue also declined, although slightly less than online revenue. It decreased 8.2% to $9.0 billion, driven by a 7.3% decline in comparable sales, Best Buy said.

“Today, we are reporting better-than-expected profitability on slightly softer-than-expected revenue for the third quarter,” CEO Corrie Barry said in a written statement.

The retailer lowered its expectations for the rest of the year. Best Buy is looking toward holiday sales to beef up Q4 sales.

“We are excited for the important holiday season and are prepared for a customer who is very deal-focused with promotions and deals for all budgets, new shopping experiences, an expanded product assortment, and fast and free fulfillment,” Barry said.

Earlier this year, Barry said that 2023 would likely be a low point in demand for tech products, and the industry will stabilize somewhat in 2024.

Best Buy ranks No. 7 in the Top 1000. The database is Digital Commerce 360’s ranking of the largest North American online retailers.

Best Buy online sales

Nearly half (43%) of Best Buy’s online sales are picked up by customers in stores, the retailer said. Customers remain willing to shop through multiple channels, including Best Buy’s app. The retailer recently launched Best Buy Drops, giving customers access to limited edition products and new releases exclusively through its app.

“We are encouraged by the early results, as Best Buy Drops is driving both incremental customer app downloads and higher frequency of app visits,” Barry told investors in an earnings call.

Best Buy also began to experiment with live shopping in the quarter. The consumer electronics retailer teamed up with live shopping platform Talk Shop Live to sell new products. The retailer did not share results of the test.

Category sales

Computing and mobile phones, consumer electronics, and appliance sales all declined year over year in the quarter. Meanwhile, entertainment and services sales grew. Entertainment grew far more than any other category, up 20.6% over last year. However, the category still makes up up just 6% of total sales.

Computing and mobile phones remained the biggest category, accounting for 44% of sales, down 8.3% year over year. Consumer electronics made up another 29% of revenue, down 9.5%. Appliances recorded the largest sales decline, 15.1%.

Best Buy expects TV and gaming sales to continue growing in Q4 and in 2024.

Best Buy is suffering from several larger economic factors, says Neil Saunders, managing director of Global Data retail analysis firm. Consumers don’t have the disposable income to spend on new electronics, and a weak housing market dampens demand for appliances, he says. 

“The purchase cycle for electronics was knocked out of kilter during the pandemic as people pulled forward purchases. We agree with management’s view that this will lead to a natural pickup in demand at some point in the future, but we are more cautious about the timing,” Saunders says.

Best Buy earnings

For the quarter ended Oct. 28, 2023, Best Buy reported:

• Domestic online revenue declined 9.3%.
• Best Buy online sales drove 30.6% of revenue.
• Domestic revenue declined 8.2% to $9.0 billion.

For the nine months ended Oct. 28, 2023, Best Buy reported:

• Comparable online revenue declined 9.5%.
• Domestic comparable sales declined 8.0%.

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