Online retail spending rose 8% year-over-year in October, maintaining the same momentum as September and outpacing traditional retail, which saw a 1% decline, according to Bank of America’s aggregated credit and debit card data.

The report showed that online penetration increased by 180 basis points year-over-year to 29.7%, the largest annual jump since the pandemic. This expansion is expected to continue through 2025 and into 2026, supported by competitive pricing, faster delivery, and enhanced user experiences powered by AI and online grocery services.

For Amazon (NASDAQ:AMZN), the data indicated steady performance relative to September and the broader third quarter, slightly exceeding Wall Street expectations, which had forecast a 1 percentage point slowdown in North American retail growth to 10% quarter-over-quarter.

October’s results received an extra lift from Amazon’s Big Deal Days event and other competitive promotions, with online sales jumping 11% during the week ending October 11. Despite that short-term boost, monthly performance remained strong overall.

Bank of America commented: “We think Amazon is relatively well positioned to capture share with improving delivery times, strong selection in value categories, and improving grocery capabilities.”

However, analysts warned that year-over-year comparisons will become more challenging from March 2026 onward, potentially slowing industry-wide growth trends.

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