Ecommerce Holiday Shopping 2024: 5 Key Consumer Trends
As the days become shorter and the weather cooler, shoppers begin to put their holiday spending hats on.
One of the major shopping events of the year is only a few weeks away—Black Friday, Cyber Monday (BFCM). From there, the peak shopping season truly begins with a month of excited consumers engaging in a tremendous amount of holiday spending.
According to PwC, shoppers plan to spend an average of $1,638 on holiday gifts, travel, and entertainment, up 7% from 2023. This being said, economic headwinds are causing many consumers to approach the holiday season with caution due to tightened budgets.
For retailers, this means that healthy sales growth is not out of the picture, as long as they can add value, offer promotions, and get ahead of key holiday shopping trends to keep their customers engaged and ready to click that purchase button.
Speaking of trends, we’re diving into 5 key consumer behaviors that will drive peak retail sales and how to ensure a successful holiday season. Let’s begin!
When does the holiday shopping season begin?
It seems that major retail events like back-to-school, Fall/Halloween themes, and BFCM are beginning to bleed into one another, creating an uptick in online and offline shopping throughout the Fall.
While the holiday shopping season is kicking off earlier and earlier each year, Black Friday is typically the official starting point. However, some retailers feature promotions and deals well before the end of November.
Something brands should note, the holiday season is actually short this year compared to last with only 27 days between Thanksgiving and Christmas. Kicking off with Black Friday on November 29th, holiday sales start to skyrocket during the month of December due to a variety of popular shopping dates:
- Black Friday, Cyber Monday (BFCM): November 29th – December 2nd
- The weekend before Christmas: December 22nd – December 24th
- Boxing Day: December 26th
- Saturday after Christmas: December 28th
While not all of these dates are unique holidays, the entire month of December is full of consumers aiming to score gifts for friends, families, and loved ones.
5 Holiday shopping trends to get ahead of
Holiday shoppers will spend more time in stores
The in-store shopping experience is not dead! In fact, it’s a key factor for consumers this year. PwC found that physical stores continue to play a crucial role in holiday shopping, with one-fifth of shoppers ranking holiday displays and store atmosphere, holiday products, and making an event out of a ‘shopping day’ as the top three influencing decisions when it comes to shopping in-person.
For ecommerce retailers, this means working with big-box retailers and boutique shops could be a major key in expanding brand reach and boosting sales during peak season. Not only this but optimizing the experience to be consistent with all other channels is another way to ensure holiday sales. Think branded pop-up product displays or specialized packaging with QR codes for customers to engage with your brand.
Mobile and social shopping will drive sales
The saying goes ‘meet your customers where they are.’ Well, this holiday season they’ll be on their phones. Mobile online shopping is projected to take the lead, making up more than half of all online holiday transactions at 53.2% and accounting for a whopping $128.1 billion in sales.
Social shopping is also expected to play a pivotal role this season. Platforms like Instagram, TikTok, and YouTube are increasingly influencing holiday purchases, especially among Gen Z, who turn to influencers for recommendations.
For retailers, this means two things: your site should be optimized for mobile phones, and your social media strategy should be optimized for sales. Think of initiatives that convert engagement into sales like holiday gift guides, influencer marketing, user-generated content promotions/giveaways, and highly personalized social media ads or sponsored content.
For your website, ensure that formatting works both on desktop and mobile. Your site should be speedy and seamless to avoid any abandoned carts—this includes simplifying site navigation and the checkout process!
AI for personalization and shopping recommendations
In ecommerce, ‘AI’ is no longer a buzzword. Customers expect hyper-personalized experiences that can only be successful with powerful data analysis of customers’ previous browsing and purchase histories.
For retailers, implementing AI chatbots that act as personal assistants is the key to getting on consumers’ good sides, with a striking 7 in 10 shoppers saying that it enhances their overall experience. With the right AI tool, brands can go beyond the one-size-fits-all approach by generating dynamic, personalized product recommendations and targeting email content to motivate purchasing.
Retailers leveraging AI this holiday season can expect higher conversion rates as they meet customer demand for streamlined, relevant online shopping experiences.
Consumers are shopping early
It feels like the holiday season starts earlier each year—and that’s because it does. Economic uncertainty and a shorter period between Thanksgiving and Christmas drive customers to begin product searching and purchasing before BFCM this year. A survey by Discover found that over half of consumers plan to do the bulk of their holiday shopping in November and early December.
For retailers, this trend means preparing earlier campaigns that emphasize early-bird offers, exclusive discounts, and seamless shopping experiences. Engaging consumers throughout October and November ensures products remain top of mind as they begin ticking items off their gift lists. This strategy not only captures early-bird shoppers but also helps brands stay visible to last-minute buyers who might return for additional purchases closer to the holidays.
Price-conscious consumers
Despite a modest improvement in the economy, inflation and high living costs continue to influence holiday spending. This price-conscious approach doesn’t mean shoppers won’t spend, but it does imply a more thoughtful, value-driven shopping process as consumers actively compare prices against competitors.
Retailers can appeal to this mindset by offering tailored value-driven promotions that go beyond simple discounts. Product bundles, for example, allow customers to purchase complementary items at a slight discount, which encourages a higher overall purchase volume. Additionally, payment options such as Buy Now, Pay Later appeal to younger consumers who do not want to spend a large amount of money all at once.
Interestingly enough, while shoppers are price-conscious, they’re also willing to pay more for sustainably sourced products. By clearly communicating product sourcing and sustainability practices, retailers can appeal to this segment of the market, which values transparency and quality along with a good deal.
Ensuring a successful holiday shopping season
Meet your customers where they are. While we mentioned shoppers may spend more time in stores this season, there’s still plenty of love for online retailers. Ecommerce merchants who develop an omnichannel fulfillment approach will stay ahead of the game this season.
But what does omnichannel fulfillment really mean? Spoiler alert, it’s not just selling on various sales channels. Omnichannel fulfillment is a unified approach to product fulfillment, meaning that wherever your product is bought, your brand experience is consistent.
This tackles everything from browsing social media for new products to purchasing online and picking up in-store. A successful omnichannel fulfillment strategy will ensure visibility and seamless operations no matter where the order is placed, and the customer will feel the effects with a hassle-free experience.
Partner with a 3PL for cost-effective, efficient shipping. Shipping costs are some of the largest expenses for online retailers, especially over the holiday season. With peak season surcharges in full effect, businesses will need to optimize their parcel strategy to ensure they stay profitable over the holiday shopping season.
Partnering with a 3PL that can negotiate carrier rates, diversify carrier strategy to avoid supply chain disruptions, and optimize packaging to reduce shipping costs will help brands combat higher peak season shipping costs.
ShippingTree’s shipping rate shopping software enables merchants to optimize their shipping strategy according to their unique business preferences. This means they can customize parameter priorities like carriers, delivery time, and shipping speed and set automated rules for selection.
Keep it personal AND seamless. Shoppers expect only the smoothest retail experiences, especially over the holiday season. Value-adds like branded packaging, free product samples, and marketing inserts go a long way during the unboxing experience. Personalized recommendations throughout the shopping journey help encourage customers to make faster buying decisions, and hassle-free returns build brand loyalty.
For brands, this means optimizing both your sales and fulfillment strategy to ensure easy purchasing. This can look like the use of generative AI for personalized product recommendation onsite, as well as leveraging a 3PL for fulfillment marketing and value-added services that surprise and delight customers as they open their holiday packages.
Exceeding customer expectations this holiday season with ShippingTree
Backed by powerful technology and operational expertise, ShippingTree unlocks seamless omnichannel fulfillment. Get real-time visibility and full control of inventory, orders, and shipping preferences—all from one user-friendly dashboard. The results? You spend less time stressing about your fulfillment and more time growing your business.
Chat with one of our friendly fulfillment experts today.
