Cyber Monday again breaks records

By Robert Dumas on Tue, Dec 13, 2022 @ 11:00 AM

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.)

Sales tax compliance can seem overwhelming, but it doesn’t have to be. Feel free to contact us for all your sales tax compliance needs – and check out our eBook, The Guide to Getting Sales Tax Right.

Robert Dumas

Written by Robert Dumas

Accountant, consultant and entrepreneur, Robert Dumas began his public accounting career on the tax staff at Arthur Young & Co., followed by a brief stint at Grant Thornton. In 1998, Robert founded Tax Partners, which became the largest sales tax compliance service bureau in the country, and later sold it to Thomson Corporation. Robert founded TaxConnex in 2006 on the principle that the sales tax industry needed more than automation to truly help clients, thus building within TaxConnex a proprietary platform and network of sales tax experts to truly take sales tax off client’s plates.