We may still be weeks away from the holidays, but for smart eCommerce retailers, now is the perfect time to start prepping.
Looking at the holiday shopping trends 2023, US retail eCommerce sales are expected to shatter previous records. They are projected to reach 271.58 billion, marking a 9.5% jump compared to 2023.
Well, one thing we’re absolutely sure about is that this season will be busy for online retailers.
So, if you’re wondering how to position your brand for digital success in 2024, you’re in the right place!
Having said that, let’s dive into some early holiday shopping trends/predictions for 2024 that shape how consumers will behave this season. With the right strategies in place, you can capture your share of the booming holiday sales.
But first, let’s recap the eCommerce holiday trends we observed in 2023!
A Blast from the Past: eCommerce Trends that Dominated the 2023 Holiday Season
Source: EMARKETER
As we look back at the 2023 holiday season, several key trends emerged that shaped consumer behavior and influenced shopping strategies.
- Online retail sales in the US reached an impressive $254 billion during the holiday season, with the most money spent during Cyber Monday.
- Consumers started their holiday shopping earlier than ever, with 27% beginning their purchases by August. This marked an increase from 19% who had started at the same time in 2022.
- Price sensitivity remained a key factor, with 49% of consumers stating that discounts were crucial in their purchasing decisions. Retailers responded with aggressive pricing strategies, leading to heightened competition and an emphasis on value.
- Eco-conscious shopping gained traction, with 62% of Gen-Z consumers indicating that they prefer buying from sustainable brands.
- Mobile shopping continued to rise, with 51% of holiday purchases made via smartphones. Retailers that optimized their mobile interfaces saw improved conversion rates and customer satisfaction.
eCommerce Holiday Trends You Should Watch Out for This Year
Shopping habits are constantly evolving, and the holiday rush often amplifies these shifts.
Just last year, we saw people eager to return to brick-and-mortar stores, making earlier purchases, and searching for easy return policies. However, as we look at holiday retail trends for this year, it’s clear that new behaviors and priorities are emerging.
Let’s dive into the five key holiday marketing trends every retailer needs to know.
1. A Shorter Holiday Season Won’t Stop Consumers
Even though there are fewer shopping days this season—only 27 days between Thanksgiving and Christmas—consumers won’t stop just yet.
According to Tapcart’s 2024 BFCM Consumer Trends report, almost 60% of shoppers begin their holiday shopping in October or early November. Plus, 44% of shoppers plan their Black Friday and Cyber Monday purchases more than a week in advance.
However, the compressed holiday period will lead to earlier shopping and delivery bottlenecks, posing challenges for retailers. If businesses aren’t prepared, this can negatively impact customer experiences.
To avoid these issues, marketers and retailers need to plan ahead, secure adequate stock, and streamline supply chains to cope with higher demand.
2. Shoppers Leaning Toward Discounts and Affordable Options
Despite economic concerns like inflation and layoffs, shoppers aren’t backing down.
In fact, consumer spending in 2023 saw a 3.1% increase compared to the previous year’s holiday period. However, many shoppers are still looking for deals to stretch their dollars.
So, what’s the magic formula when it comes to discounts?
Research by the Boston Consulting Group found that 60% of consumers prefer straightforward “discounts on everything” rather than limited-time flash sales or bundled offers. Notably, at least 30% discounts tend to drive the most conversions. Retailers should consider these insights when crafting their holiday promotions.
Moreover, flexible payment methods like Buy Now, Pay Later (BNPL) can also help appeal to budget-conscious consumers this season.
Retailers can utilize competitor price comparison tools to further enhance their competitive edge. These tools allow brands to monitor and adjust their pricing strategies in real-time, ensuring they remain attractive to price-sensitive consumers.
By implementing solutions like those offered by Intelligence Node, retailers can optimize their pricing and stay ahead in a competitive market.
3. Mobile Shopping Will Dominate
Why must consumers brave the cold weather when they can shop from their couch?
Source: Statista
Mobile shopping is on the rise and will continue to be more prevalent this year, with the number of devices expected to touch over 18 billion.
A survey by Retail Dive found that 40% of Gen Z shoppers begin shopping on mobile apps or websites. Tapcart’s report also reveals that 81% of consumers plan to use mobile shopping apps during Black Friday and Cyber Monday.
To stay competitive, eCommerce businesses need to ensure seamless mobile shopping experiences. From easy payment solutions like Apple Pay and Google Pay to integrating social commerce, retailers must meet consumers where they are—on their phones.
4. Self-Gifting Gains Popularity
Self-gifting is becoming a bigger trend every year, with 61% of consumers likely to purchase something for themselves while shopping for others. This trend is viral among Millennials (73%) and Gen Z (68%).
Additionally, this also ties into the broader movement of self-care and treating oneself, a behavior amplified by the COVID-19 pandemic as people sought comfort in small, personal indulgences.
5. Personalization is Key to Winning Consumers
During this busy holiday season, shoppers don’t want to feel like just another number.
They expect personalized shopping experiences, especially in an era where Spotify curates “For You” playlists for them and they engage with hyper-personalized content on TikTok.
The good news is that thanks to artificial intelligence (AI), personalization is easier than ever!
AI tools can help eCommerce brands predict trends, analyze purchasing behavior, and even streamline their supply chains. In customer service, AI-driven chatbots can assist customers by finding products, answering queries, processing orders, and even handling returns.
Digital wish lists are another effective personalization tool. They allow shoppers to save items for later or share lists with friends and family. By personalizing every touchpoint, brands can turn first-time holiday shoppers into lifelong loyal consumers.
Wrapping It Up: Preparing for Holiday Success in 2024
With the economy fluctuating and new technologies emerging, consumer habits are bound to keep changing. Inflation, innovation, and market shifts have all shaped this year’s shopping landscape.
In response, shoppers are getting an early start on the holidays, making careful spending decisions, and embracing the convenience of mobile shopping.
To stand out this season, you should pay attention to eCommerce holiday marketing trends, leverage the potential of retail technology, and get creative with your strategies. Also, provide personalized, seamless shopping experiences that cater to the customers’ evolving needs. By doing so, you’ll be well on your way to a successful holiday season.
So, here’s to happy holidays—and even happier shopping
