Despite rising inflation and fears of a recession, online sales in the United States topped US$20 billion over Cyber Week. 

Cyber Week refers to the spending period from the American holiday, Thanksgiving to Cyber Monday. These days have traditionally marked the start of the holiday spending season with various discounts and deals.

Adobe Analytics, which tracks sales on retailer websites, said that this year’s Black Friday online sales were 2.3% higher compared to last year. Americans spent a record-breaking US$9 billion on Black Friday. 

The agency noted that electronics were the biggest draw, up 221% over an average day in October, while toys (up 285%) and exercise equipment (up 218%) were the second and third most popular categories.

The company noted that some of that growth reflects higher prices and not higher volume because its figures weren’t adjusted for inflation. 

According to Abode, on Thanksgiving Thursday, there were US$5.3 billion in online sales.  Cyber Monday raked in a massive US$11.3 billion in sales. 

Buy Now, Pay Later

In total, that’s US$25.7 billion spent across three days – a new record for online retail sales.

Speaking on Taking Stock with Kalilah Reynolds, CEO of Profit Jumpstarter Keisha Bailey said a lot of this was made possible due to the emergence of Buy Now, Pay Later apps. 

Abode’s analytics showed the use of these flexible payment plan options increased by over 70%. 

Bailey explained that Buy Now, Pay Later apps allow shoppers to pay for their purchases in instalments over 6-24 months without any interest.

She said payment firms such as AfterPay and PayBrite charge vendors instead of customers to use their services. 

“The vendors are the ones that pay. So Macys, Steven Madden, and even Shein, pay the firm, not the consumer,” she said.

She said this may have further implications for America’s consumer debt levels.

WATCH THE SEGMENT HERE