November 26, 2018
With e-commerce booming year-round, Cyber Monday (Nov. 26), the annual winter retail event closing the Black Friday weekend, is projected to generated $7.8 billion in online sales – 18% above last year’s record tally of $6.6 billion, according to Adobe Analytics.
The figure follows record online spending on Black Friday when consumers spent $2.6 billion the day after Thanksgiving – up 24% from $2.09 billion last year.
Notably, Black Friday and Cyber Monday flourished despite the fact major retailers such as Walmart and Amazon touted online specials ahead of the annual retail event.
More importantly, online sales increased as about 30 states are in the process of implementing taxes for online purchases following a U.S. Supreme Court ruling in June that found the state of South Dakota could force online retailers such as Wayfair and Amazon to charge sales tax even if the companies do not have a physical presence in the state.
The change meant online shoppers could expect to pay upwards 8% more for e-commerce purchases depending where they live.
“If you’re an online shopper looking to avoid paying sales taxes, that’s about to change,” said Julia La Roche with Yahoo! Finance, who added she doesn’t expect sales tax to put a damper on ecommerce going forward.
“People are still going to shop online [for the convenience],” La Roche said.
Amazon closed Nov. 26 up more than 5% at $1,581.33 per share.