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Cyber Monday continues to grow The Biggest Cyber Monday Yet

By CJ Santosuosso

Online purchases being shipped off to customers.
© 2012 AP Photo/Ross D. Franklin

{CJ SANTOSUOSSO}

HI NOAH AND DREW – CYBER MONDAY IS IN THE HOME STRETCH – AND EXPERTS BELIEVE THIS MAY BE THE LARGEST ONE YET.

DELOITTE, IN THEIR ANNUAL HOLIDAY SHOPPING SURVEY, SAID LAST YEAR WAS THE FIRST YEAR THAT ONLINE SHOPPING PERFORMED BETTER IN OVERALL SALES THAN IN STORE PURCHASES. THIS YEAR THAT TREND CONTINUED.

OVER THE LAST FOUR YEARS YOU CAN SEE CONSUMERS SPENDING MORE MONEY ONLINE THAN IN STORE. ABOUT 57 PERCENT OF MONEY SPENT IS GOING TO ONLINE RETAILERS, COMPARED TO ABOUT 37 PERCENT IN STORE.

THIS GRAPH SHOWS THAT ONLINE IS LEADING THE WAY AGAIN – WITH 60 PERCENT OF SHOPPERS SAYING THEY’LL SHOP ONLINE COMPARED TO 52 PERCENT WHO WILL GO TO BIG STORES AND 32 PERCENT WHO WILL GO TO TRADITIONAL DEPARTMENT STORES.

AND YOU CAN SEE FROM THIS GRAPH AN INCREASE OF OVER 20 BILLION DOLLARS FROM ONLINE PURCHASES FROM LAST YEAR TO THIS YEAR.

BUT A RECENT SUPREME COURT RULING WILL HAVE AN IMPACT ON ONLINE SHOPPING. THE RULING SAYS STATES CAN APPLY SALES TAX ON ONLINE PURCHASES, REVERSING A DECISION FROM 1992. FOR SHOPPERS IN THOSE STATES, THEY CAN EXPECT AN INCREASE IN THEIR ONLINE SHOPPING BILL.

THE STATES IN RED HAVE LEGISLATION THAT HAS BEEN IN PLACE SINCE AT LEAST BLACK FRIDAY.
THE STATES IN BLUE HAVE LEGISLATION THAT WILL TAKE EFFECT ON JANUARY 1ST 2019.
NOW YOU MAY NOTICE ONE STATE WITH NO LEGISLATION AT THE MOMENT, NEW YORK STATE.

AT THE MOMENT THERE IS NO LEGISLATION IN PLACE, THE STATE LEGISLATURE WON’T CONVENE UNTIL THE START OF THE NEW YEAR, SO FOR NOW, ONLINE SHOPPERS IN NEW YORK STATE DON’T HAVE TO WORRY ABOUT A PRICE INCREASE ON THEIR HOLIDAY GIFTS.

NOAH AND DREW, BACK TO YOU.

By CJ Santosuosso SYRACUSE, N.Y. (NCC News) – The holiday shopping season is in full swing, and this year may be the biggest one yet.

Especially in terms of online sales.

There would be an 18% increase with regards to Cyber Monday sales, according to Adobe. It’s looking like that prediction was right on the money.

$7.8 billion dollars were spent on Cyber Monday shopping alone, Adobe estimates.

That is a new Cyber Monday record.

But this online shopping trend increase can be applied throughout the holiday shopping season, says the annual Deloitte holiday shopping survey.

Online sales are expected to exceed $128 billion in total sales, a 19% increase from last years all time high in online sales.

More and more people are turning to online for their shopping needs. About 60% said they would shop online, while 52% said they would go to mass merchants.

Only 32% of the shoppers surveyed said they would go to your traditional department stores, which explains why many of them have had tough years.

Sears has had to close hundreds of stores after filing for bankruptcy. JC Penney has had their share of struggles, as has Lord and Taylor, which announced that this will be the last time shoppers can buy holiday gifts at their flagship store on Fifth Avenue in New York City.

But as more and more shoppers turn to e-commerce, stores are going to have to find ways to keep up with online giants, such as Amazon, who broke records this year with their online sales for Black Friday and Cyber Monday, according to the company.

But a new Supreme Court ruling could play a factor in the online shopping.

Overturning a 1992 decision 5-4, the court ruled that states can collect sales tax from online retailers, even if they don’t have a physical store in that state.

So shoppers in some states could see their purchases have cost increases that could grow up to 10%.

Some states have no laws set to go into effect yet, New York being one of them.

But the court argues that this law is set in place so people cannot evade paying taxes simply by shopping online. Speculation is New York could join nearly half the states in the country soon by adding sales tax to online purchases.

The state legislature reconvenes in January.

With all the craziness that comes around this time of year, one thing is certain though.

The holiday shopping season continues to change before consumers eyes.

 

 

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