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.
-
Technology1 hour agoCharted: Alphabet’s Revenue Breakdown in 2024
As one of the world’s most profitable companies, we show Alphabet’s revenue streams in 2024 as sales climb to $350 billion.
-
Technology1 day agoCharted: How Microsoft Makes Its Billions
Microsoft revenues jumped to $245 billion in fiscal 2024, fueled by its flagship cloud services business and diverse revenue streams.
-
Technology1 day agoRanked: Most Popular AI Tools by Monthly Site Visits
ChatGPT remains the most widely used AI tool, with 4.7 billion monthly site visits—far surpassing all other platforms.
-
Technology2 days agoWhat Resources Can We Get from the Moon?
While solar energy is abundant, mineral and water extraction technologies are still developing.
-
Technology4 days agoCharted: How Does Meta Make Money?
Meta’s revenues surged to a record $165 billion in 2024, boosted by AI-powered ad targeting services and increased impressions.
-
Technology6 days agoCharted: How Amazon Makes Its Billions
Amazon’s revenue breakdown shows how it’s on pace to become America’s largest company by sales in 2025 if trends continue.
