(NewsNation) — Thanksgiving marks the unofficial kickoff of the holiday shopping season, and much of that activity is expected to take place online.
According to the Pew Research Center, online shopping reliably surges in the fourth quarter of every year, just as retail sales generally do.
However, as the holiday season unfolds, online shopping is expected to maintain an upward trajectory, emphasizing the enduring impact of the COVID-19 pandemic on consumer behavior.
In 2022, online sales, categorized as “retail e-commerce sales” by the U.S. Census Bureau, amounted to $303.1 billion in the October-December period, showcasing a notable 23.4% surge compared to the first nine months of the year.
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This surge is not merely restricted to the dollar volume, as the online share of all retail sales also tends to peak in the fourth quarter.
In the fourth quarter of 2022, Pew reports online sales accounted for 16.3% of all retail sales, compared with an average of 14.1% in the first three quarters.
As we approach the fourth quarter of 2023, there are expectations for another robust performance in online shopping.
Retail e-commerce totaled $793.7 billion, making up 14.9% of all retail sales in the first three quarters of the year, according to Pew.
The onset of the COVID-19 pandemic in early 2020 led to a substantial and lasting boost in online shopping. Although the e-commerce share of retail sales slightly receded post-pandemic, Pew reported, it has remained significantly higher than pre-pandemic levels.
Notably, retailers without physical stores, categorized as nonstore retailers by the Census Bureau, have been major beneficiaries of the online shopping surge.
In the third quarter of 2023, nonstore retailers claimed nearly 62% of all retail e-commerce sales, up from just over 59% from the previous year, Pew reported, saying their year-over-year growth in e-commerce sales outpaced the overall sector, rising by 12.4%.
While general merchandise stores experienced an 8.7% increase in online sales, other sectors including electronics and appliance stores, motor vehicle and parts dealers and furniture and home furnishings stores witnessed declines in online sales during the same period.