Cyber Monday Is What? Understanding the Online Shopping Phenomenon

Cyber Monday is the Monday after U.S. Thanksgiving, when retailers promote online deals. This article explains its history, how it relates to Black Friday, and what shoppers should check before buying. The sales figures below are dated historical results, not forecasts for the next holiday season.

Key Takeaways

• Cyber Monday falls on the Monday after U.S. Thanksgiving and is an established online shopping event. Its sales performance depends on the year, market, and dataset.
• A Shop.org team including Ellen Davis named Cyber Monday in 2005 after observing increased online shopping on the Monday after Thanksgiving.
• Retailers may extend their promotions across several days or weeks. Cyber Monday shopping also takes place outside the United States, but offers and participation vary by market.

What Is Cyber Monday?

Cyber Monday, held on the first Monday after U.S. Thanksgiving, focuses on online sales. Retailers may offer discounts, free shipping, or other incentives, but conditions vary. Check the total price and offer terms rather than assuming that a Cyber Monday label means the lowest price.

In Adobe’s 2023 U.S. online-sales report, Cyber Monday generated $12.4 billion, a record in that dataset at the time. A historical record should not be read as a current worldwide ranking.

Cyber Monday deals can cover electronics, fashion, and home goods. Adobe uses Cyber Week for the five days from Thanksgiving through Cyber Monday. Retailers may run promotions outside that window.

The History of Cyber Monday

In 2005, a Shop.org team including Ellen Davis coined the term Cyber Monday. Shop.org was the National Retail Federation’s digital retail division. In Davis’s account of the event’s origins, the team named a pattern that retailers had observed after Thanksgiving.

Davis recalled that the team publicized its research in a press release and that the name spread quickly. This account describes the term’s adoption; it does not establish that the name itself caused an increase in sales.

Office internet access was part of the early context: consumers could shop from work computers on the Monday after Thanksgiving, before smartphones and widespread home internet access. That history does not mean shoppers today need to return to an office to take part.

Key Milestones of Cyber Monday

Comscore reported U.S. non-travel retail online spending of $484 million on Cyber Monday 2005. Its 2010 report recorded $1.028 billion. These were historical estimates from Comscore, rather than worldwide sales totals.

Adobe reported U.S. Cyber Monday online sales of $9.4 billion in 2019 and $10.8 billion in 2020. Its reported total then fell to $10.7 billion in 2021, before reaching $11.3 billion in 2022 and $12.4 billion in 2023. The series did not rise every year. For more dated results and shopping patterns, see our guide to Cyber Monday sales and shopping figures.

Retailers have capitalized on this trend by extending their sales over multiple days, leading to what is now known as Cyber Week. This period sees significant sales beyond just Cyber Monday, reflecting a broader shift in consumer shopping habits.

The Evolution of Cyber Monday Sales

Introduced in 2005, Cyber Monday responded to the growing online shopping trend recognized by the NRF. Over the years, evolving consumer expectations have led many retailers to start their sales weeks in advance. This shift has given rise to concepts like ‘Black November’, where promotions extend throughout the entire month of November.

The COVID-19 pandemic in 2020 accelerated the shift towards online shopping, leading to record Cyber Monday sales. Social media can also be a channel for product discovery and purchases.

As the lines between Black Friday and Cyber Monday blur, both events now feature extensive online shopping opportunities. This blending of sales events has created a continuous stream of deals, making the holiday shopping season more dynamic and competitive.

Why Cyber Monday Matters for Online Retailers

Cyber Monday can be an important part of an online retailer’s holiday sales strategy. Retailers should assess their own sales, margins, and costs rather than assume that an industry-wide increase guarantees the same result for their business.

Economic concerns are influencing holiday shopping behavior, with cost awareness becoming a priority for consumers. Cyber Monday presents an opportunity for targeted marketing campaigns, allowing retailers to reach both loyal and new customers.

Cyber Monday also helps retailers clear out older inventory to make space for new products. Discounts during this period can enhance brand visibility and provide valuable data on consumer preferences and shopping habits, even among non-purchasing visitors.

How Cyber Monday Impacts Holiday Shopping Season

Cyber Monday has become one of the largest shopping days of the holiday season, significantly impacting consumer spending patterns. The emergence of shopping days like Small Business Saturday and Cyber Week shows Cyber Monday’s contribution to the overall holiday shopping landscape.

Adobe’s completed 2023 results put U.S. online sales at $12.4 billion on Cyber Monday and $9.8 billion on Black Friday. Its five-day Cyber Week total was $38 billion. These are observed results, replacing the earlier forecasts.

Cyber Monday vs. Black Friday: What's the Difference?

Black Friday has roots in store shopping, while Cyber Monday focuses on online offers. Both events now include online sales, and retailers may extend either promotion beyond the named day.

Neither event guarantees the lowest price for technology, appliances, or smaller goods. Compare the same product and total order cost across retailers. Shoppers who want to avoid crowds can look for online offers on either day.

The Impact of COVID-19 on Cyber Monday

During the COVID-19 pandemic, consumers shifted more shopping online. Adobe reported $10.8 billion in U.S. online sales on Cyber Monday 2020, up 15.1% from 2019. The report described shoppers avoiding store crowds, but these figures alone do not isolate how much of the increase the pandemic caused.

Shopping from home was one option during the pandemic; collecting an online order was another. Adobe reported that curbside pickup grew 30% year over year on Cyber Monday 2020. That measures pickup growth, not the percentage of all consumers planning to shop online.

For a separate retailer example, Amazon reported that independent sellers on its marketplace exceeded $4.8 billion in worldwide sales from Black Friday through Cyber Monday 2020, up more than 60% from the previous year. This covers independent sellers over four days, not Amazon’s own sales on Cyber Monday alone.

The Role of Social Media in Cyber Monday

Social media has become a powerful tool for online retailers during Cyber Monday. It plays a crucial role in promoting deals and engaging with customers. Platforms like Instagram, Facebook, and Twitter drive traffic to online stores and create buzz around Cyber Monday sales.

In Shopify’s September 2023 survey of 12,000 consumers across six countries, 33% said they would be likely to buy directly from Instagram, 31% from Facebook, and 28% from TikTok. These were stated intentions, not measured purchases or product-discovery rates.

Retailers leverage social media to create a sense of urgency, often offering limited-time deals and exclusive discounts to entice shoppers.

Beyond promotions, social media fosters a sense of community and engagement. Retailers use these platforms to interact with customers, answer questions, and provide real-time customer service, enhancing the overall shopping experience. This direct engagement helps build brand loyalty and encourages repeat purchases.

Tips for Shoppers on Cyber Monday

Prepare a shopping list and set price alerts for items you want. Before saving payment or shipping information with a retailer, check how it uses and protects that information.

Some browser extensions can find discounts or track cashback; check their permissions and offer conditions. If a retailer offers store pickup, check when the order will be ready.

Check the seller and use an encrypted checkout. HTTPS protects data in transit but does not prove that a store is legitimate. See the FTC’s online-shopping guidance for checks to make before paying.

The Role of Hivenet in Cyber Monday

Hivenet offers cloud storage solutions for photos and everyday files. Before choosing a plan during Cyber Monday, check Hivenet's pricing page for current storage allowances, billing periods, and any offer terms. Compare the total subscription cost and billing period when a price is shown as a monthly equivalent.

Hivenet offers desktop browser access and apps for macOS, iPhone, iPad, and Android; check the downloads page for current compatibility. Files are encrypted, split into fragments, and distributed across Hivenet's storage infrastructure. For background on encryption and data protection, see our guide.

Global Reach of Cyber Monday

Cyber Monday shopping extends beyond the United States. Salesforce’s 2023 report recorded Cyber Monday online sales activity globally and in Europe. It does not establish that the event has official status in a fixed number of countries.

The markets covered by that report included Australia/New Zealand, Canada, Germany, Spain, Italy, and the Netherlands. Coverage in a report is different from a universal count of countries taking part, and local retailer offers may differ.

Online Shopping Trends and Insights

Understanding online shopping trends and insights is essential for online retailers looking to maximize their Cyber Monday sales. Category performance depends on the year, market, retailer, and measure used. A category’s discount percentage is different from its share of sales.

Gift cards have also become a popular choice, offering a convenient and flexible gift option for many consumers. This trend is particularly relevant during the holiday season, as shoppers look for easy and versatile gift solutions.

Mobile shopping is relevant to retailers, but growth rates and shares of spending are different measures. Comscore reported that U.S. mobile spending on Cyber Monday grew 17% year over year in 2020. This is growth in dollars spent, not mobile’s share of total online sales.

By staying informed about these trends, online retailers can tailor their marketing strategies to meet consumer demands and enhance their Cyber Monday sales. Understanding the impact of COVID-19, the role of social media, and current shopping trends can help retailers create effective campaigns and drive significant revenue during this critical shopping event.

Planning for Future Cyber Monday Sales

Past results can inform planning, but they do not guarantee growth in the next holiday season. Retailers should set budgets and delivery plans using current demand, inventory, and operating costs.

For shoppers, research means comparing the same model, checking delivery and return terms, and assessing reviews critically. A promotion’s deadline does not remove the need to check those details.

Cyber Monday and Shopping

Cyber Monday has come a long way since its inception in 2005. From its humble beginnings as a term coined to boost online sales, it has become an established part of the holiday shopping calendar. With record-breaking sales and a global reach, Cyber Monday has significantly impacted both consumers and retailers.

Future results depend on retailer offers, consumer demand, and market conditions. So, whether you’re a seasoned bargain hunter or a first-time Cyber Monday shopper, there’s no denying the excitement and potential savings that this day brings.

Frequently Asked Questions

What is Cyber Monday?

Cyber Monday is an online shopping event celebrated on the first Monday after Thanksgiving, featuring substantial discounts and exclusive offers from various online retailers. It presents a valuable opportunity for consumers to save on holiday shopping.

How did Cyber Monday start?

Cyber Monday started in 2005 when Shop.org introduced the term to encourage online shopping after Thanksgiving, setting it apart from the in-store emphasis of Black Friday. This concept has since evolved into one of the biggest online shopping days of the year.

Why is Cyber Monday important for online retailers?

Cyber Monday gives online retailers an opportunity to attract customers, sell inventory, and learn about shopping preferences. Results vary, so retailers need to assess revenue alongside margins and promotional costs.

How does Cyber Monday compare to Black Friday?

Both events include online deals, and retailers may extend promotions beyond the named day. Cyber Monday does not guarantee better prices for a particular category; compare the same product and full order cost.

What are some tips for shopping on Cyber Monday?

Make a shopping list, set price alerts, compare total costs, and check the seller and offer terms. Review privacy settings before saving personal details or installing a shopping extension.