U.S. Online Promotional Sales Grow as Consumers Focus More on Value
U.S. consumers continue to participate in online promotional events, but purchases are increasingly driven by price, discounts and product value, with demand concentrated in promotional and high-value categories.
What are the key facts?
- 1Levi’s e-commerce sales increased 10%
- 2U.S. consumers continued shopping online during October promotional events
- 3The consumer environment places greater emphasis on price, discounts and product value
- 4Approximately $9.86 billion in U.S. online spending during Amazon Prime Big Deal Days
What happened?
Digital Commerce 360 reported that U.S. consumers continued purchasing during online promotional events, with demand remaining intact, but that buying decisions placed greater emphasis on price, discounts and product value. Levi’s recently disclosed that its e-commerce sales increased 10%, a performance that coincided with approximately $9.86 billion in U.S. online spending during Amazon Prime Big Deal Days. The report said purchases were increasingly concentrated in promotional products, durables, electronics and high-value products. Cross-border sellers should not assume that all categories will grow based only on the overall scale of promotional events. Apparel, home goods, consumer electronics accessories and gifts need to highlight discounts, bundles, free-shipping thresholds and fast delivery; products with high return rates, high average order values or limited brand recognition may face longer decision cycles. When planning inventory, sellers should consider advertising conversion rates, post-discount gross margins and return rates rather than looking only at GMV.
What does this mean for cross-border sellers?
Demand during U.S. online promotional events remains, but consumers are concentrating purchases on promotional products, durables, electronics and high-value items. Do not assess category opportunities solely from total event sales. Factor post-discount margins, advertising conversion rates and return rates into promotion and inventory decisions.
What should sellers do now?
- 1This week, screen U.S. listings in apparel, home goods, consumer electronics accessories and gifts; record prices, discounts, costs and platform fees; calculate post-promotion gross margins separately; and produce a list of products suitable for continued advertising and products requiring adjustments.Profit calculator
- 2For U.S. listings with high average order values, high return rates or limited brand recognition, calculate break-even points at different discount levels, review pricing against advertising conversion rates, and create a minimum acceptable selling-price checklist for each product.Breakeven calculator
- 3Organize a U.S. inventory list by promotional products, durables, electronics and high-value products; mark priorities using current advertising conversion rates, post-discount gross margins and return rates; and complete an executable purchasing plan.Procurement List