Thrive Amidst Holiday Shopping Challenges
Get ready for the most wonderful and busy time of the year! According to eMarketer forecasts, the 2023 holiday season is expected to see a 4.5% increase in overall retail spending, reaching a whopping $1.3 trillion. E-commerce is set to play a significant role, accounting for nearly 20% of sales and contributing 48.5% of incremental spending gains.
At Allure Commerce, we’re unwrapping the latest predictions and strategies to help enterprise retailers make the most of this holiday shopping season. Let’s delve into the early consumer shopping trends driving 2023.
- Holiday Shopping Starting Earlier Than Ever: Last year’s trend continued this year as well, with major retailers having initiated their Cyber Monday and Black Friday promotions as early as October. A Google survey in mid-October found that holiday shoppers globally had 21% of their shopping already complete. Early holiday shopping is becoming the norm, and retailers need to be prepared for an “always on” marketing approach.
- Shoppers Eager to Get Back In-Person: After three years of online shopping due to COVID-19, customers are eager to return to in-store shopping. Brick-and-mortar holiday spending reached $1 trillion for the first time in 2022, showing a 3.9% gain from the previous year. The surge in Black Friday foot traffic signaled a resurgence in brick-and-mortar shopping. Enterprise retailers should respond by embracing an omnichannel strategy to seamlessly blend online and offline channels.
- Economic Uncertainty and Cautious Spending: Despite the season for buying, data suggests that many shoppers may tighten their holiday budgets. There are concerns for inflation. This has caused 71% of retailers to expect consumers to cut back on spending. Wall Street anticipates a potential recession in the next 12 months, starting as early as November. For retailers, this means discounts are crucial as 67% of shoppers are expected to seek discounts this holiday season.
Source: CNBC’s Supply Chain Survey
- Hassle-Free Returns for Brand Loyalty: The holidays present a prime opportunity for brands to attract and retain customers. Creating a memorable post-purchase experience is key, and this includes offering a simple and easy returns process. Despite an expected increase in returns (10-16% of e-commerce orders in the U.S.), it’s a chance for brands to demonstrate care. A study by FedEx reveals that 98% of shoppers would reorder if offered fast and convenient returns, with 56% willing to pay for hassle-free returns.
As we await how the last part of this holiday season unfolds, our advice at Allure Commerce is to keep your customer at the forefront of your e-commerce strategy. From deals and discounts to enhancing the omnichannel experience, putting your customer first is crucial to standing out!
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