If Black Friday and Cyber Monday 2025 are any indication, online shoppers are out in full force with Labubus, Nintendo Switch 2s, and Dyson Air Wraps as top projected sellers according to Adobe Analytics. Overall Black Friday online numbers reached new levels, with a record-breaking $11.8 billion, or a 9.26% increase from last year. Cyber Monday e-commerce sales hit $14.25 billion, a 14.92% jump from 2024.
The data from Sovos’ global tax rate calculation engine and database also shows new levels of sales, but that it can keep pace with the growth.
On Black Friday this year, Sovos had a 1.6% increase in line-item count from 2024 and a 1.9% increase in transaction count. Cyber Monday transaction volume showed a 25% increase compared to 2024, with a 17% increase in line-item count numbers. During the 2025 Black Friday and Cyber Monday period, the Sovos Global Tax Determination platform processed more than 305 million-line items with 100 percent uptime. Cyber Monday volume hit record levels with a 22.6% lift over last year, all while maintaining record response times.
Sovos has prioritized investing in products and infrastructure to ensure seamless performance during these peak spending periods. From 24/7 monitoring to the state of Active/Active in place, Sovos teams are constantly working to give clients the best experience possible. This was recognized during Black Friday and Cyber Monday as uptime was 100%, with the integration adapter also at 100% with no interruptions.
A Shift Towards e-Commerce
According to Mastercard SpendingPlus, this Black Friday “e-commerce retail sales excluding autos jumped +10.4%, as shoppers increasingly value speed and convenience. In-store sales grew more modestly (+1.7%).” Adobe also highlights that mobile has cemented its dominance, with mobile revenue share expected to hit a record 56.1% of online spend during the 2025 holiday season
This year AI powered suggestions and Buy Now Pay Later plans stood out as key factors driving added complexity in calculating Sales and Use tax. During these high traffic days, with rapidly changing discounts and BNPL) transactions running through third parties, keeping a comprehensive record of your retail information is essential.
Buy Now, Pay Later (BNPL) Complexity
BNPL “continues to be an important payment option” according to Adobe, who forecasts $20.2 billion in BNPL spend for the 2025 holiday period, representing 11% growth over 2024 and signaling that deferred payment structures will be a larger share of taxable holiday commerce.
BNPL can boost sales and improve checkout conversion, but it creates compliance complexity with deferred payment tax implications varying by state. While most jurisdictions tax the full purchase amount upfront, others apply tax differently when financing fees or installment-related charges come into play. That inconsistency makes it easy for businesses to miscalculate tax, misapply timing rules, and expose themselves to audits. Because BNPL relies on third-party providers and fast, high-volume transactions, even small errors can snowball. Automated tax determination is the only realistic way to keep pace with shifting rules and ensure accurate collection, remittance, and reporting across all jurisdictions.
AI and Sale Searching
Retailers face real complexity with discount rules varying wildly by state. Some jurisdictions tax the original price, others tax the discounted one, and AI driven deals only increase the number of price changes that need to be tracked correctly. Holiday promo stacking also creates audit risk since layered discounts like lightning deals, coupons and cart level promotions can change the taxable base multiple times in a single transaction.
AI price adjustment adds another layer because two shoppers can receive two different prices for the same item which means the taxable amount becomes unique per customer and must be recorded accurately. Increased cross state traffic during peak shopping days complicates compliance with destination based tax rules, shipping considerations, and digital goods regulations all affecting how tax must be calculated.
Looking Ahead
As Black Friday and Cyber Monday continue to grow in scale and complexity, the retailers that will thrive are those that treat tax as a strategic part of the customer experience rather than an afterthought. By pairing always-on automation with a platform built to handle AI‑driven pricing, BNPL installments, and omni-channel volume at peak load, Sovos helps businesses keep every transaction accurate and audit-ready—so tax never gets in the way of conversion, compliance, or customer trust.
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Learn how Sovos provides unparalleled uptime and performance, ensuring you stay competitive year-round – not just on Black Friday and Cyber Monday.