If you’re one of those scrounging about for deals this Cyber Monday, you probably know that it has eclipsed Black Friday for shopping. In fact, in 2014, Cyber Monday was the biggest shopping day of the year. More and more, consumers are turning to the Internet, mobile apps, online coupons and social media to get the best deals on their holiday spending.
UT Dallas marketing and retail professor Dr. Dan Rajaratnam, offers these Cyber Monday trends you need to know.
1. Cyber Monday gets bigger every year.
- In 2014, the day’s online sales increased more than 8 percent compared to 2013, and for the first time surpassed $2 billion in sales.
- Although sales were up, they weren’t as high as expected because retailers began offering cyber deals earlier in the month. And as retailers receive backlash for opening their stores on the holiday, this practice will increase.
2. When it comes to shopping online versus in-store, the No. 1 behavior for consumers this year is “webrooming.”
- Webrooming — looking at products online and purchasing them in a bricks-and-mortar store — is the latest phenomenon impacting the online retail industry.
- Sixty-nine percent of consumers “webroomed” in 2015, versus 58 percent in 2014.
3. Social media: More engagement means better deals.
- In general, the more touch points a consumer has with a company, the more they spend with that company. Therefore, downloading an app from a store or connecting on social media will probably yield more deals — but you might spend more too.
- Social media traffic on Black Friday last year doubled from 2013 and was used to drive online sales.
4. Big companies are doing more online to compete.
- Target offered online deals beginning Thanksgiving morning this year, and Best Buy is offering free shipping through Jan. 2.
- Walmart launched Black Friday sales online at 12:01 a.m. PT on Thanksgiving, so consumers could get “doorbuster” deals from home.
5. Consumers choose to shop online for the convenience, but the experience needs improvement.
- Retailers need to make online shopping easier in order to draw in more people.
- Sixty percent of shoppers prefer to shop in person, and 90 percent of all U.S. retail sales take place in-store.
6. Shipping causes another concern.
- FedEx is expecting a 12 percent increase in shipments from Black Friday through Christmas Eve. Last year, UPS and FedEx held retailers to their volume commitments, aiming to avoid a repeat of 2013 when 2 million packages didn’t arrive by Christmas.
- Consumers should subscribe to email or text messaging alerts and plan to be home for their deliveries to avoid package thefts from the front door.
The last three months of the year see the most online fraud so it’s important while shopping online to be secure and take extra precautions to secure your private information. Experts for UT Dallas’ Cyber Security Institute provide tips to help reduce the chance of cyber attacks:
7. Shoppers should always be aware and cautious.
- Only shop on trusted sites and never click any URLs from untrusted senders: These URLs might lead to visits to malicious websites. This includes online advertising – be careful not to click on ads from sites you don’t recognize.
8. Use credit cards if possible.
- Fraudulent activity is easier to recognize and dispute by monitoring your card activity regularly. See if your bank will provide a temporary credit card with a short expiration date and a set limit specifically for online shopping during the holidays – this can help shoppers avoid serious damages if the card information is stolen.
9. Use PayPal.
- To complete online transactions and minimize theft risk to credit cards, use PayPal or another service with limited funds so you’re entire Christmas savings account isn’t wiped clean by one bad breach.
10. Be vigilante and alert, says Dr. Bhavani Thuraisingham, director of the Cyber Security Institute at UT Dallas.
