“Cyber 5—the five-day holiday shopping frenzy that stretches from Thanksgiving through Cyber Monday—is in the books, and U.S. shoppers spent a record $28.49 billion online, according to Adobe Analytics data. That’s up 17.7% from $24.21 billion for the same holiday weekend in 2018.
Here’s a Cyber 5 recap from Digital Commerce 360 (formerly Internet Retailer) with snapshots on overall sales performance by day, where online consumers shopped, email marketing trends and fulfillment metrics.
Cyber Monday made $9.42 billion
Online sales during Cyber 5 grew at the fastest rate in since 2015, when the increase in ecommerce revenue was roughly the same, according to Adobe.
Cyber Monday still came out on top, bringing in $9.42 billion in web sales, up 19.7% from $7.87 billion on Cyber Monday 2018. Black Friday hit $7.43 billion in ecommerce revenue, up 19.5% from $6.22 billion last year.
5.5 million packages shipped between Thanksgiving and Dec 4, 2019
According to fulfillment data from Convey, a last-mile technology vendor, the number of holiday packages shipped from Thanksgiving, Nov. 28, through Wednesday, Dec. 4, ballooned 27.3% year over year. During that period, retailers shipped 5.5 million packages, up from 4.3 million during the same holiday week in 2018.
The increase in shipment volume is in line with overall spending for Cyber 5, when online sales jump more than 19.0% year over year on both Black Friday and Cyber Monday, says Kirsten Newbold-Knipp, Convey’s chief growth officer.
Earlier this week, Amazon announced that sellers on its site will not be permitted to use FedEx for deliveries to Amazon Prime customers. The Wall Street Journal reported a “decline in performance” as the reason for the change but Amazon did not give specifics about what that decline was.
Now we know. A supply chain software company called Convey has done an analysis on 2.5 billion shipping events relating to tens of millions of packages shipped from over 500 thousand locations since Thanksgiving and the results are troubling to any FedEx shareholder: FedEx on-time delivery performance has dropped to 68.3% from 77.5% in the same period in 2018. And FedEx is not alone. The same analysis shows UPS’ on-time stats are down too, from 86% to 80%. Most likely, the increase in the number of packages and the higher percent going to consumers’ homes is overwhelming the companies’ systems and accounts for the decline in on-time performance.
Although these poor performance numbers from FedEx and UPS are bad for Amazon’s customer service in the short-term, this may be a big opportunity for Amazon in the longer term. Amazon is now leaning on these poor performance numbers to continue to build its own delivery business.
This article was originally written on December 16, 2019 by Jessica Young. Read the full article, and see all of InternetRetailer’s charts here.