Overwhelming Internet traffic
Cyber Monday was a mixed bag for Target, as its website could not manage the customer volume. According to Catchpoint Systems, which monitors the retail website, Target put its online shoppers in a virtual line to provide gradual access in order to reduce traffic congestion.
The holiday season is driven by online purchases, as many consumers chose to shop online rather than go to stores. Many retailers made Black Friday deals available online before they were available at stores.
E-commerce hit a major milestone
Thanksgiving saw an increase of 9% in online spending to $1.1 billion, exceeding a billion dollars for the second consecutive year, according to analytics firm ComScore. Moreover, Black Friday revenue sales remained even stronger at $1.7 billion on desktops, an increase of 10% compared to Black Friday in 2014.
The Target website was not the only website to face outages. Luxury retailer Neiman Marcus’s site was down for most of Black Friday. Moreover, PayPal’s operations were majorly impacted on Sunday and Monday mornings. The outage came as e-commerce hit a major milestone in the retail history. Last week 103 million customers made online purchases as opposed to 102 million who purchased in stores and malls. Plus, it is expected that Cyber Monday sales revenues will reach up to $3 billion, according to Adobe Analytics.
The PowerShares NASDAQ Internet Portfolio (PNQI) is a portfolio of 94 stocks, out of which the top four stocks, Amazon (AMZN), Alphabet (GOOG), Facebook (FB), and Netflix (NFLX), constitute 9.1%, 8.7%, 8.3%, and 7.5%, respectively.