Black Friday Web sales jump
CHICAGO (Reuters) - Online sales jumped on Black Friday as consumers searched for electronics such as the Wii video game console and Apple's iPhone and iPod touch, according to eBay Inc and Amazon.com Inc. — Amazon.com and eBay had both forecast a weaker holiday …
Context & Ripple Effects
Amazon was broadening beyond books while also offering its back-office software to other e-commerce businesses, tying its retail performance to the operating tools used by other online sellers. Apple entered the shopping period with modest iMac and MacBook discounts, while demand for its iPhone and iPod touch featured in the electronics rush.
The contrast between strong Black Friday web activity and Amazon and eBay's weaker holiday forecasts matters because a single promotion-driven day may not settle the outlook for the full selling season.
First-order effects
- Amazon and eBay gain evidence that electronics are drawing online shoppers even as both companies project a softer holiday period.
- Apple benefits from heightened online attention to the iPhone and iPod touch alongside its Black Friday Mac promotions.
Second-order effects
- Amazon and eBay must separate demand concentrated in heavily promoted electronics from broader holiday spending when managing their seasonal outlooks.
- Amazon's other e-commerce customers have a stronger incentive to use reliable back-office tools during peak demand periods, reinforcing the relevance of its software offering.
Third-order effects
- If peak-shopping demand continues moving online, retailers and marketplaces will compete on fulfillment and commerce infrastructure as well as product selection and discounts.
The trend: Holiday retail is becoming a contest for online electronics demand, with retailers' commerce infrastructure increasingly important to capturing it.