As we approach the 2024 holiday season, e-commerce is poised for significant growth, outpacing traditional retail once again. With consumers increasingly favoring mobile shopping and focusing on value, retailers must be prepared to adapt to new holiday trends. Effective planning is essential to navigate this bustling period and meet customer expectations.
Let’s delve into the trends and insights shaping online shopping for the 2024 holiday season and explore how retailers can leverage them for success.
In this article, we’ll dig into:
Evolving Shopper Behavior
This season, consumer priorities are a blend of convenience, savings, and immediacy. Shoppers are becoming more strategic, making conscious decisions about where and how they spend their money. For e-commerce retailers, this presents a unique opportunity to stand out through flexible options, easy price comparisons, and personalized recommendations.
Mobile Shopping Takes Center Stage
Mobile shopping is on track to account for 53% of holiday online sales, reflecting a substantial shift in consumer behavior. Adobe Analytics projects a 12.8% year-over-year growth in mobile commerce. In fact, they’re projecting that mobile shopping will “consistently eclipse” desktop going into 2025.
Notably, last Christmas Day saw mobile making up 63% of online sales, highlighting its critical role in the shopping experience. Additionally, according to Retail Dive, 51% of online shoppers transacted via smartphones last holiday season, an increase from 47% a year ago.
Insight: Enhance the mobile experience with intuitive navigation and streamlined checkout processes, along with mobile-exclusive promotions that keep shoppers engaged.
Value-Driven Shopping in Focus
Amid rising inflation, consumers are prioritizing value like never before. Adobe states approximately 48% of shoppers report comparing prices more this year than last, and 46% indicate they would forgo an item if it’s priced too high.
With 82% of consumers stating they’ve used their mobile device to compare prices while shopping in-store, retailers must remain competitive. This year, 69% of consumers say that deep discounts will be critical for their purchasing decisions.
Insight: Retailers that can offer compelling discounts and bundle deals are likely to capture the attention of budget-conscious consumers.
Key Categories Expected to Excel
Despite economic challenges, certain categories are set to thrive this holiday season, with the National Retail Federation predicting total holiday retail sales in the U.S. to reach around $979.5 billion to $989 billion.
Electronics, Apparel and Furniture & Home Goods are the standout categories for the season.
- Electronics: This category is projected to generate approximately $55 billion in sales, marking an increase of 8.5%. The latest gadgets, smart home devices, and entertainment systems are among the most sought-after items.
- Apparel: Holiday growth will be stronger than last year’s 1.7% increase. The forecast predicts 5.8% growth, with approximately $43 billion in sales.
- Furniture & Home Goods: Anticipated to see a sales increase of 4.2%. With consumers investing in their living spaces, the category is projected to generate $28 billion in sales.
- Toys and Games: Projected to grow by 5.8%, which is largely fueled by a combination of both classic and trending toys for their children.
- Beauty and Personal Care: Anticipated to grow by 6.2%, driven by the ongoing trend of self-care and the popularity of luxury beauty products. Gift sets and skincare items are particularly popular during the holidays.
Emerging Holiday Trends Shaping 2024 Shopping
The 2024 holiday season is not just about traditional gift-giving; new trends are reshaping consumer expectations.
Self-Gifting Gains Popularity
With 32% of U.S. adults planning to buy themselves a holiday gift, retailers can tap into this trend by highlighting self-care and indulgent product offerings. Moreover, 62% of Gen Z shoppers are expected to participate in self-gifting this year.
The takeaway: Sellers can take full advantage of ‘treat yourself’ messaging as a tactic to increase sales.
Focus on Sustainability
Shoppers, particularly among Gen Z, are increasingly inclined to choose brands that align with their values, favoring eco-friendly and ethically sourced products. According to recent studies, 62% of Gen Z shoppers prefer to buy from sustainable brands, and a staggering 73% are willing to pay more for sustainable products.
The takeaway: Retailers that emphasize sustainability in their offerings can gain a competitive edge.
Experience Over Material Goods
Gift-giving is evolving toward experiences rather than just products. Consumers continue to show interest in subscriptions, online courses, and unique event packages. A recent survey revealed that 22% of millennials are interested in purchasing experiences this holiday season.
The takeaway: Brands that provide experiential gifts or exclusive holiday bundles can effectively meet the demand and drive revenue.
Financial Planning is Essential
As we approach the busy shopping season, strategic financial planning is vital for Amazon and online sellers’ success. Funding from SellersFi can help cover things like inventory, marketing, logistics costs, and any other business need. It’s always a good idea to explore your options to ensure the right fit without straining cash flow.
If you have any questions about how capital can help you deliver on your goals this holiday season, reach out to our support team and we’ll be happy to help. Or if you’re ready to get started, it’s easy to apply for funding in minutes.
