Sovos Sees 92% Jump in Tax Processing on Black Friday
Sovos says it saw “record-breaking” tax processing performance on Black Friday/Cyber Monday sales.
The compliance company announced Thursday (Dec. 5) that it had processed taxes on close to 300 million items just on those two days, out of the more than 16 billion it processes each year.
According to a company news release, Sovos saw a 92% increase in transaction count for Black Friday, and an 83% uptick for Cyber Monday. While these were “unprecedented volumes,” Sovos says it maintained 100% uptime.
“These two days represent the pinnacle of the shopping year for our retail customers. Here, even the slightest glitch or delay in processing transactions can prove costly,” Sovos CEO Kevin Akeroyd said in the release. “Our ability to scale seamlessly and support record-breaking demand reflects the unmatched reliability of our platform. Sovos ensures businesses can operate confidently, even during the year’s most critical moments.”
The release notes that Sovos’ record processing volumes accompanied record consumer spending, as shoppers spent $10.8 billion on Black Friday and $13.2 billion on Cyber Monday.
“These trends not only highlight the continued growth of eCommerce but also signal positive economic momentum as businesses prepare for 2025,” Sovos said.
“To meet this increasing demand for eCommerce processing, Sovos continues to prioritize investments in its platform and products to ensure seamless performance and availability during these peak spending periods.”
Meanwhile, the National Retail Federation (NRF) released data this week showing that while spending was up this year, the actual number of people shopping during the Thanksgiving-to-Cyber-Monday stretch declined somewhat.
All the same, 197 million people who shopped this year was the second-highest total on record, the NRF said in a news release. The highest-ever came last year, at 200.4 million. This year’s figure exceeded the federation’s initial forecast of 183.4 million shoppers.
“Thanksgiving weekend retains its prominence among holiday spending events and continues to play a significant role in the holiday season for both consumers and retailers,” NRF President and CEO Matthew Shay said. “Even with this year’s shortened shopping period and the multitude of early sales promotions from retailers, this past weekend exceeded expectations in terms of the sheer volume of shoppers.”
The NRF’s figures showed 126 million consumers shopping in stores during the five-day stretch, compared to 121.4 million last year. Meanwhile, the total of online shoppers came to 124.3 million, falling from 134.2 million in 2023.
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