Cyber Monday 2020

Data Insights: Cyber Monday 2020

This report shares insights into shopper behavior on Cyber Monday 2020, the first ever digitally dominant holiday following the onset of the pandemic. It further reveals how these behaviors compare to Cyber Monday 2019 and in one instance how these behaviors compare to October 2020 (the unofficial start of the 2020 holiday season, kicking off with Amazon’s Prime Day), May 2020 (the unofficial indicator of the acceleration to ecommerce, which saw Black Friday/Cyber Monday-like sales).

Bluecore derived this data from 90 million first-party cookies, 78 million cart events, 937 thousand unique products, 5.5 million orders and $615 million in total sales across 159 retail brands (52 Apparel, 11 Beauty, 20 Footwear, 15 Home, 10 Jewelry, 10 Technology, 41 Other).  

The resulting insights are based on analysis of a total of 672 million shopper events on these brands’ ecommerce sites, including shoppers adding product(s) to cart, conducting keyword searches, viewing products and completing sales transactions. 

Bluecore gathered and analyzed this data on Cyber Monday 2020. The complete methodology can be found in the Appendix of this report, and a similar report conducted on Black Friday can be found here.

These insights offer retailers visibility into the trends that will not only impact sales for the remainder of the year, but also demonstrate fundamental changes for consumers as they fully settle into this digital-first world.

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QUESTION #1: DID RETAIL BRANDS SEE REPEAT PURCHASES ON CYBER MONDAY 2020? OR WERE MOST CUSTOMERS FIRST-TIME BUYERS?

 

Q1
  • Across all sub-verticals, most buyers were first-time buyers — a typical trend for this shopping holiday as brands draw new shoppers in with heavy promotions.
  • The large number of first-time buyers represents a major retention opportunity for brands to drive repeat purchases and gain significant potential revenue for a retailer: Getting 2,200 buyers (22% of 10,000 first time buyers) who purchased for the first time on Cyber Monday to purchase again throughout the year represents a $187K revenue opportunity for retailers that have an AOV of $50 and $374K for retailers that have an AOV of $100. This calculation is: Number of first time buyers * re-purchase rate * average number of orders placed after Cyber Monday * AOV. In this case: 22% repurchase rate * 10,000 first time buyers * 1.7 orders after Cyber Monday * $50 AOV (or $100).

Why is this important? Sixty percent of second purchases occur within 100 days after the first purchase. Following that first 100 days, the chances of a second purchase remain stagnant temporarily before ultimately dipping below 10%. With every purchase customers make, the likelihood that they will return increases. Retailers see the biggest jump in likelihood to purchase again between one-time buyers and two-time buyers, as the chances nearly double.

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QUESTION 2: DID BRANDS SEE MORE FIRST AND SECOND-TIME BUYERS ON CYBER MONDAY 2020 COMPARED TO CYBER MONDAY 2019?

 

Q2
  • The proportion of the percentage decrease in first-time buyers for Jewelry could be indicative of a prolonged holiday season, with less emphasis on Cyber Monday and more general focus on the holidays as a whole, since this is a common gift category. 
  • Apparel saw the biggest percentage decrease in first and second time buyers, which could indicate that these buyers purchased ahead of Cyber Monday, in line with many apparel brands starting promotions earlier compared to last year.
  • Technology saw an increase in both first and second-time buyers, suggesting that consumers may rely on heavy promotions when making purchase decisions with these big-ticket items.
  • Home’s decrease in second time buyers potentially points to two key changes in consumer behavior in 2020:
    • With lock-downs in effect months prior to Cyber Monday, shoppers had already invested in WFH goods and other houseware items earlier in the year.
    • With the uncertainty of the current environment, some individuals’ home locations are in flux, and as such, some are not investing in home goods at this time.
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QUESTION #3: HOW MANY SHOPPERS BECAME REPEAT BUYERS OF BRANDS THEY FIRST DISCOVERED DURING THE PANDEMIC?

 

Q3
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QUESTION #4: HOW DOES SITE TRAFFIC ON CYBER MONDAY 2020 COMPARE TO CYBER MONDAY 2019?

 

Q4
  • With the exception of Footwear and Apparel, site traffic increased across all categories.
  • The spike in Beauty is likely indicative of last-minute deals convincing buyers to pull the trigger on nice-to-have items, rather than necessities.
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QUESTION #5: ARE CYBER MONDAY PURCHASES MORE LIKELY TO BE PLANNED OR IMPULSE BUYS?

 

Q5
  • The majority of Cyber Monday purchases (53%) are impulse purchases across all categories. This represents a huge opportunity for retailers, who, with relevant communications, can convert first-time buyers into repeat customers.
    • This number is down from Black Friday as shoppers have had a weekend full of promotions to research offers and finalize their shopping lists before purchasing.
  • 47% of purchases are considered or researched purchases (as indicated by shoppers viewing products, often more than once in the month leading up to Cyber Monday).
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QUESTION #6: DID SHOPPERS PLACE MORE ORDERS ON CYBER MONDAY 2020 COMPARED TO CYBER MONDAY 2019?

Q6
  • With the exception of Footwear and Apparel, all categories saw an increase in the total number of orders — with average total orders up 14% year over year on Cyber Monday and 26% on Black Friday.
    • With travel restrictions in place for the holidays, this could reflect shoppers opting to send their gifts directly to friends and family, therefore requiring multiple orders to deliver at each address.
  • The significant increases in Beauty, Home, Jewelry, and Technology are indicative of the massive shift to online shopping amidst store closures and in-person regulations.
  • The decrease in total number of orders for Footwear and Apparel is consistent with the decrease in site traffic — both indicative of people’s evolving needs as they work from home.
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APPENDIX

DETAILED METHODOLOGY

These insights are derived from Cyber Monday UTC (7PM EST Sunday 11/29 – 7PM EST Monday 11/30).

Q1: Did retail brands see more repeat purchases on Cyber Monday 2020? Or are most customers first-time buyers? 

For 159 retailers (52 Apparel, 11 Beauty, 20 Footwear, 15 Home, 10 Jewelry, 10 Technology, 41 Other), we calculated the percentage of first-time, second-time, third-time, and fourth-time buyers on Cyber Monday 2020.

Q2: Did brands see more first and second-time buyers on Cyber Monday 2020 compared to Cyber Monday 2019?

For 159 retailers (52 Apparel, 11 Beauty, 20 Footwear, 15 Home, 10 Jewelry, 10 Technology, 41 Other), we calculated the percentage of first-time and second-time buyers on Cyber Monday 2020 and compared that to the percentage of first and second-time buyers in 2019.  

Q3: How many shoppers became repeat buyers of brands they first discovered during the pandemic?

For 159 retailers (52 Apparel, 11 Beauty, 20 Footwear, 15 Home, 10 Jewelry, 10 Technology, 41 Other), we calculated the proportion of buyers who made their first purchase from 3/1 – 9/30 and purchased again in the early holiday season, defined as 10/1 –  Cyber Monday (11/30) 

Q4: How does site traffic on Cyber Monday 2020 compare to Cyber Monday 2019?

For 159 retailers (52 Apparel, 11 Beauty, 20 Footwear, 15 Home, 10 Jewelry, 10 Technology, 41 Other) in 2020:

  • 55 retailers have < 20,000 cookies onsite on a typical day (‘smaller’), 61 retailers have between 20K-100K cookies onsite on a typical day and 43 retailers have > 100K people on-site on a typical day in 2020
  • A customer is considered on-site if one of the following retail-specific actions is taken: add to cart, viewed cart, viewed product, search, browse category, or purchase. As such, homepage visits are not included.
  • For each retailer, site traffic on Cyber Monday is compared to that of a typical day, and the factor is calculated as: number of cookies on-site on Cyber Monday/number of cookies on-site on a typical day.

For each category, the median factor is calculated and can be interpreted as described.

Q5. Are Cyber Monday purchases more likely to be planned or impulse buys?

For 159 retailers (52 Apparel, 11 Beauty, 20 Footwear, 15 Home, 10 Jewelry, 10 Technology, 41 Other) in 2020 we calculated proportion of Cyber Monday shoppers viewed a product within the entire month prior to the day. For each retailer calculate the following and take the median values for each category:

  • Average number of products viewed: average number of distinct products (as calculated using the product id field) viewed in the month prior to Cyber Monday
  • Average number of views: average number of distinct views in the month prior to Cyber Monday (a single product can be viewed multiple times) 
  • Proportion of Cyber Monday shoppers that viewed: the proportion of all the customers who made a purchase online on Cyber Monday that viewed at least once in the month prior

Q6: Did shoppers place more orders on Cyber Monday 2020 compared to Cyber Monday 2019?

For 159 retailers (52 Apparel, 11 Beauty, 20 Footwear, 15 Home, 10 Jewelry, 10 Technology, 41 Other) in 2020 we calculated proportion of Cyber Monday shoppers who placed an order on Cyber Monday 2020 and compared it to the proportion of shoppers who placed an order on Cyber Monday 2019, operating off of UTC time zone.