The results are in for Turkey 5 (also known as Cyber Week). U.S. shoppers spent an estimated $35.27 billion online overall during the five days from Thanksgiving through Cyber Monday. This is a 4% increase from 2021. While many analysts describe this performance as underwhelming, it is important to keep in mind that expectations were even lower. Adobe’s initial 2022 Holiday Shopping Forecast estimated total sales would grow by only 2.5%. Below is a breakdown of how Thanksgiving, Black Friday, and Cyber Monday compared with the previous two years.
Top Turkey 5/Cyber Week Callouts
Amazon announced that customers purchased a record number of products during this year’s Turkey 5. While the company doesn’t release sales figures, it stated that small businesses generated over $1 billion in sales over the five-day stretch. The best-selling categories were Home, Fashion, Toys, Beauty, and Amazon Devices.
“This was a record-breaking holiday shopping weekend for Amazon,” said Doug Herrington, CEO, WW Amazon Stores. “Customers shopped millions of deals this weekend and we have many more amazing deals to come. Thank you to our customers for choosing to shop on Amazon, and to our employees and selling partners around the world who are delivering for customers every day.”
According to the National Retail Federation, 196.7 million people shopped in stores and online during Turkey 5, up 17 million from 2021. As expected, Cyber Monday was the best-performing day of the holiday season so far. Customers spent $11.3 billion online this year, compared to $10.8 billion during Cyber Monday 2021. The Adobe chart below shows the daily spend for the holiday season since the beginning of October.
Channel Key Client Performance During Turkey 5
Overall, Channel Key clients enjoyed strong results compared to the national average, with many exceeding their projections. Below is a sample of how clients in four different categories performed during this year’s Turkey 5:
- Electronics Client: 138% YoY Increase
- Books Client: 138% YoY Increase
- Home & Kitchen Client: 44% YoY Increase
- Pet Supplies Client: 40% YoY Increase
As predicted, Prime Exclusive Discounts generated the best results, accounting for up to 20% of total sales for some clients during Turkey 5. The success of Prime Exclusive Discounts is likely due to two reasons: 1) holiday shoppers are searching for the best deals they can find, and 2) Amazon highlights these promotions by showing a discounted price with the regular price crossed out. Buyers also see a savings summary in search results and on product detail pages. Prices adjusted for discounts are displayed on the Featured Offer detail page for Prime members. Since Turkey 5 is Amazon’s busiest shopping week of the year, Prime Exclusive Discounts have proven to be a cost-effective way to promote products to shoppers who are ready to spend.
Channel Key Takeaway
Inflation is the biggest factor this holiday season. As prices of everyday goods continue to rise, customers simply have less money to spend. Brands should consider the 4% growth in spending during Turkey 5 as good news – especially when considering sales dropped last year (for the first time in history). With several weeks left in the season, there is still time for brands to harness the holiday spending momentum. Channel Key recommends continuing to run the promotions and marketing levers that worked best for you during Turkey 5. Traffic to Amazon will certainly decline over the next couple of weeks, but last-minute holiday shopping will still provide an opportunity for brands to generate meaningful sales before the new year.
