From CNBC:

Online holiday spending broke records this year, rising 4.9% year over year, hitting a total of $222.1 billion. Adobe Analytics reports that more purchases drove spending, with prices falling across many product categories. Strong online sales during the holiday season could benefit major retailers like Walmart, Amazon, and Target, though consumers may pull back spending in the new year. Cyber Week accounted for $38 billion of online holiday sales, and buy now, pay later options contributed $16.6 billion in online spending.

In-store and online retail sales, excluding automotive sales, increased 3.1% year over year during the holiday season. Mastercard also reports a 6.3% rise in online retail sales compared to a 2.2% increase for in-store spending. The Chief Economist from Mastercard credited a healthy jobs market and easing inflation for giving consumers confidence to spend.

Many shoppers took advantage of big discounts during the holiday season, pushing online consumer spending to new heights. Buy now, pay later options, which allow shoppers to pay off items in smaller installments over time, also contributed to the increase in online spending.

Adobe’s data covers more than 1 trillion visits to U.S. retail websites, 100 million unique items, and 18 total product categories. Cyber Week accounted for nearly one in five dollars spent during November and December, with a 7.8% increase in spending compared to the previous year.

Online spending remained a smaller portion of overall holiday spending, though it continues to grow. This growth in online sales is attributed to a healthy jobs market and easing inflation, according to the Chief Economist from Mastercard. This year, the holidays saw a 6.3% increase in online retail sales compared to a 2.2% rise in in-store spending.

In a news release, Mastercard Economics Institute’s Chief Economist, Michelle Meyer, credited a healthy jobs market and easing inflation for giving consumers confidence to spend. The company also found sharp growth in online spending during November and December. Adobe’s Digital Price Index, which tracks online prices across 18 product categories, reported a 5.3% drop in e-commerce prices year over year in December. This drop contributed to the increase in online consumer spending during the holiday season.



Read more: Online holiday spending rises to new record, Adobe Analytics says