How big were online sales on Monday, Nov. 28?
Defying expectations of an off year, Cyber Monday broke online sales records, with U.S. consumers spending about $11.3 billion, up 5.8% year-over-year, to score the biggest online shopping day of all time. Inflation played little part in the numbers, analysts said.
In the peak hour between 8 and 9 p.m. Pacific, consumers spent $12.8 million every minute.
Spending on Cyber Monday was greatest on toys, up almost sevenfold compared with an average day in October. Electronics e-sales were up 391%, computers up 372%. Online sales of sporting goods, appliances, books and jewelry all more than quadrupled.
On Cyber Monday 2021, $10.7 billion was recorded in sales, a drop from 2020’s $10.8 billion.
“Cyber Week” 2022, the period including Thanksgiving and Black Friday, is estimated to reach $35.27 billion in sales online, up 4% over last year and accounting for 16.7% of all sales in the months of November and December.
Overall eCommerce sales are predicted to reach almost $1.3 trillion in the U.S. this holiday season, compared with $1.21 trillion last year.
Sounds exciting – an eager audience for your products. But again, watch details related to your sales tax compliance this banner season:
- Nexus, the connection between your online business and a tax jurisdiction. All states with statewide sales tax have set economic nexus thresholds in recent years.
- Selling through such marketplace facilitators as Amazon may boost your sales but can contribute to the economic nexus thresholds in states that consider the total gross sales – not to mention physical nexus if a facilitator keeps your consigned inventory in their warehouses nationwide.
- Sales tax rules change all the time: Pennsylvania, for instance, just ruled on nexus for sellers with inventory in an Amazon warehouse. (You can follow the latest sales tax developments monthly in the TaxConnex blog.)