According to a CNBC economic survey, online shopping during the holidays in 2021 surpassed the peak set during the 2020 pandemic.
Click. Click. Gift.
Online shopping surged this holiday season, with 57% of Americans naming it as their top destination for Christmas gifts, according to the CNBC All-America Economic Survey.
In 2006, online shopping accounted for only 18% of responses. It reached a record high in 2020, during the pandemic, with 55% responding it was their top destination. Although it decreased to 51% last year, it retained some of its pandemic gains. However, this year it hit another all-time high.
A survey of 1,002 Americans was conducted from Dec. 8 to 12, with a margin of error of +/-3.1%.
The reason for the surge in online spending is unclear, but it could be due to a search for bargains to combat inflation. Women aged 50 and older are among those spending more online this year, as they tend to be more frugal and concerned about inflation and the economy. However, they shop less online than younger women aged 18-49. Additionally, those with incomes below $30,000 and those who plan to spend only $200 on gifts are also spending more online this year, far below the $1,300 average.
Micah Roberts of Public Opinion Strategies, the Republican pollster for the survey, stated that inflation is a significant factor in why people are spending less and more. "Since everything costs more, you'll have to spend more to acquire it," he added.
Amazon top destination
Online shopping destinations vary among groups, but where they spend is mostly consistent. For the past six years, Amazon has been the top online shopping destination, with no one else coming close. In 2017, only 35% of the public considered Amazon their top online destination. Today, that percentage has increased to 74%, the same as last year but below its 2019 high.
The only other competitor, , has made some modest gains, increasing from 12% to 16% last year and from 4% to 16% in 2017. Similarly, specialty goods stores, such as and local store websites, also experienced growth from 8% to 14%.
This year, Americans plan to use debt to pay for gifts in roughly the same percentages as before, with 31% saying they will carry a balance from holiday spending, up 1 point from last year. However, 10% say they will use "buy-now-pay-later" plans.
The full survey can be viewed here.
markets
You might also like
- Delinquencies are on the rise while a record number of consumers are making minimum credit card payments.
- U.S. economy state weighs on little changed treasury yields.
- European markets predicted to sustain positive growth.
- Trump hints at imposing a 10% tariff on China starting in February.
- David Einhorn believes we are currently in the "Fartcoin" phase of the market cycle.