Online Shopping: Charting the Holiday Surge
Online Shopping: Charting the Holiday Surge
In the fourth quarter of 2023, online shopping was a record-breaking 17% of all retail sales. Put another way, one out of every six dollars was spent online.
This graphic, in partnership with BGO, highlights the spike in ecommerce that occurs every year during the holiday season.
The Growing Popularity of Online Shopping
Over the last 15 years, the percentage of money consumers are spending online has more than tripled. The most online shopping always occurs in the fourth quarter due to Black Friday and holiday spending.
In the table below, we show online shopping as a percentage of total retail sales over time.
| Q1-Q3 Average | Q4 | |
|---|---|---|
| 2010 | 4.1% | 5.3% |
| 2011 | 4.5% | 5.9% |
| 2012 | 5.0% | 6.5% |
| 2013 | 5.4% | 7.0% |
| 2014 | 6.0% | 7.6% |
| 2015 | 6.7% | 8.5% |
| 2016 | 7.4% | 9.3% |
| 2017 | 8.2% | 10.3% |
| 2018 | 9.1% | 11.1% |
| 2019 | 9.9% | 12.4% |
| 2020 | 13.8% | 16.6% |
| 2021 | 14.1% | 16.0% |
| 2022 | 13.8% | 16.0% |
| 2023 | 14.7% | 17.1% |
| 2024 | 15.5% | - |
Source: U.S. Census Bureau. Data accessed November 19, 2024.
With people stretched for time during the busy holiday season, many opt for quick online orders and home deliveries.
Beyond convenience, deals also draw people to their screens. For instance, Amazon’s October Prime Day and Cyber Monday both offer deals catered to online shoppers. In 2024, Cyber Monday drew over 64 million U.S. shoppers—nearly three times higher than the 23 million people who shopped in stores.
To handle the increase in online shopping orders, U.S. retailers will need to have a plan for storing their products and transporting them to customers.
The Logistics of Online Orders
Free and fast shipping are top priorities for online shoppers. Nearly 40% would abandon a retailer with high shipping costs, while 32% would stop buying because of late deliveries. These high expectations, and the increase in ecommerce, is driving demand for real estate that can process online orders.
BGO’s industrial warehouse and logistics properties are strategically located to help reduce expenses and transport goods to consumers more quickly. During the busy holiday period, these properties run at full efficiency to meet the surging demand.
Learn what’s moving markets in BGO’s The Chief Economist newsletter.
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