Adobe Stock (NASDAQ:ADBE)
Despite the persistent economic uncertainty, American consumers still make significant e-commerce expenditures. Nevertheless, many customers now use less conventional payment methods online. As a result, Adobe stock surged in the market.
According to Adobe (NASDAQ:ADBE), which used its annual Adobe Summit meeting on Wednesday to unveil its newest statistics on the e-commerce business and the digital economy, the latter is growing rapidly. Adobe (ADBE) statistics show that the use of “Buy Now Pay Later” (or “BNPL”) alternatives is on the rise among online buyers. These options enable customers to spread out payments for large purchases over many months.
Adobe reports that in 2022, the proportion of online transactions paid for using BNPL options increased by 14% from 2021, leading to a 27% increase in income. In addition, BNPL orders increased by 10% in the first two months of this year compared to the same time in 2022, but income from such purchases fell by 19%. According to Adobe stock, a divergence indicates that customers are turning to BNPL to avoid the emotional impact of making a large purchase simultaneously.
Although e-commerce has been “resilient,” according to Adobe Digital Insights’ senior analyst Vivek Pandya, customers are experiencing the effects of a mixed economy on basics like groceries, where BNPL purchases were up 40% year-over-year in January and February.
Pandya speculated that the increasing popularity of Buy Now Pay Later for food items was due to people making larger purchases online to take advantage of special specials and stock up on essentials, allowing them more financial flexibility.
Home furnishings had a 38% increase in BNPL use in the first two months of this year, while clothing saw an 8% increase.
According to Adobe, mobile shopping is predicted to eclipse desktop sales this year, which will likely be reflected in the entire e-commerce purchasing experience. According to Adobe (ADBE), this was evident during the 2022 Christmas and holiday shopping season, when 51% of transactions during Cyber Week occurred on smartphones for the first time. This year, smartphones are expected to drive the bulk of monthly online sales.
Adobe utilized its Digital Summit to show off some of its latest developments in artificial intelligence technologies for editing photographs and documents and its information on e-commerce analytics.
Featured Image: Unsplash @ Rubaitul Azad