The holidays are here, which means holiday shopping has begun. With consumers in the gift-giving mood, retailers are in the prime position to market and sell their products to an eager audience. The challenge is understanding evolving shopping trends and behaviors to come out ahead of the competition.
In this article, we will examine the top five trends retailers need to know to prepare for—and win—this holiday shopping season. To dive into the latest data on holiday shopping directly from consumers, read this recent article from PowerReviews.
A Bankrate survey found that 33% of shoppers plan to spend less on holiday shopping in 2024 than last year. Consumers are navigating budget constraints, but they’re still committed to thoughtful, meaningful gifts. The PowerReviews data reinforces this nuanced landscape: while some are reining in expenses, significant spending remains prevalent, with 28% planning to spend up to $2,000 and 21% budgeting between $2,001 and $5,000.
With these varied budgets, personalized content—including relevant product bundles and custom product suggestions—is more critical than ever. AI and data analytics allow retailers to provide curated recommendations, dynamic deals and experiences that connect with shoppers at every budget level. Tailoring offerings through bundles or upselling relevant items helps shoppers feel they’re getting valuable deals while enhancing average order values.
Retailers can also appeal to shoppers’ desire to make the most of their holiday budget by highlighting bundled products or discounts, which allow customers to check off multiple gifts at once. By doing so, brands make the shopping experience efficient and enjoyable, creating loyalty and increasing the likelihood of repeat purchases.
Advanced analytics allow for a tailored approach that can increase conversion rates, especially when paired with holiday-specific deals. Personalization throughout the buyer’s journey, especially on product detail pages, gives shoppers more of what they want: great gifts they want to give at a surprising value.
Holiday shopping doesn’t start and end at checkout. Consumers compare multiple products across brands and retailers to ensure they get the best product at the best price. Most, if not all, of this process takes place online.
The move to online shopping has been growing for years. We saw a massive uptick in online shopping during and after the pandemic, and in 2024, holiday shopping behaviors will continue in that direction. The most recent consumer report from 1WorldSync found that 41% of shoppers shopped through E-commerce sites and marketplaces like Amazon, Walmart and Target more this year than last.
Mobile shopping continues to grow, too. The same survey found that 28% of consumers shopped more through mobile applications operated by retailers like Target, Walmart, etc., compared to 2023. Adobe forecasted the total season spending to hit nearly $241 billion, with mobile spending accounting for more than half of that total.
Additionally, PowerReviews found that nearly half of respondents (48%) plan to spend more online this holiday season compared to last year, with Gen Z being the most likely to increase their online spending. Amazon continues to dominate as a top destination, with 93% of consumers planning to shop there. Consumers will also look to brand-specific sites (67%) and multi-brand retailers like Walmart and Target (each at 54%).
Quality, accurate, consistent product content is essential for brands competing on an expanding digital shelf. As shoppers hop between sites and platforms (and if they venture in-store), they expect seamless experiences. The brands that deliver on these expectations build trust and confidence in consumers, and their sales numbers will reflect it.
Because spending is up during the holidays, consumers need payment flexibility that works within their budgets. Offering financing has virtually become a requirement for retailers, even for “small ticket” items. As many shoppers approach gift-giving with an increased budget consciousness and inflation affecting every purchase, more retailers are positioning payment flexibility front and center at checkout.
Providing Buy-Now-Pay-Later (BNPL) options allows shoppers to continue their purchases, reducing friction in the buyer’s journey. BNPL has seen continued growth in 2024, which is expected to continue during this holiday season. Adobe forecasts BNPL spending will peak on Cyber Monday with a new single-day record of $993 million.
PowerReviews data highlights the importance of payment flexibility, especially as more consumers carefully consider holiday spending. By offering BNPL or similar financing options, retailers can cater to shoppers who wish to distribute payments over time, reducing friction in the buying journey and allowing budget-conscious customers to make higher-value purchases.
Product content plays an equally critical role here. Consumers carefully assess product pages to ensure they’re making smart purchases within their budgets. Brands should highlight product features, quality images and reviews that help buyers make confident purchasing decisions—especially for higher-priced items where financing options may be leveraged.
Shoppers desire consistent, seamless content experiences throughout their buyer journey. Delivering these experiences is especially critical during the holiday shopping season when the buyer’s journey tends to be longer than other times throughout the year. As consumers spend more time choosing the perfect gift at the ideal price, product content plays a vital role that must not be underestimated.
Holiday shoppers are primed for purchase. Retailers must deliver the content experiences that seal the deal. Research from 1WorldSync found that quality product content persuaded up to 85% of shoppers to buy a product they didn’t initially think they wanted or needed. Product content often means the difference in making or losing a sale.
The longer shoppers spend on the research stage of their buyer’s journey, the more brands, products and content they will be exposed to. Retailers must optimize every piece of content to ensure shoppers can not only discover their products but are compelled to buy them.
The following help guide shoppers through their holiday shopping journeys toward purchase:
As journeys trend longer this season, retailers can proactively engage shoppers with consistent and meaningful content experiences across every touchpoint on every channel where they sell.
New shopping channels continue to grow, including social commerce shops that merge social media and online shopping into one platform. PowerReviews reveals that Gen Z shoppers especially value social proof through user-generated content, which helps them connect with brands on a personal level and find relatable, authentic product endorsements. Platforms like Instagram, TikTok and Facebook now integrate shoppable posts, influencer campaigns and interactive features to create seamless shopping experiences.
Social proof is a compelling factor not only for holiday season shoppers but also for consumers throughout the rest of the year. The upward trend of social commerce allows brands to build loyalty and adapt to a digitally driven holiday shopping season, focusing on interactive, community-oriented experiences.
As most consumers conduct gift research and shop from their devices, product content strategy is more important than ever. The holiday season is a crucial time of year for most retailers. Consumers are prepared to spend, and after pricing, product content will be the determining factor in most purchase decisions.
Content is critical to sales; that’s nothing new. However, the type of content that engages customers and compels them to purchase is constantly evolving. PowerReviews’ survey of over 11,000 consumers underscores that product content will likely be a deciding factor in many holiday purchases. Brands should focus on creating a comprehensive, high-quality content strategy that meets consumer needs across three key areas:
As we head into the holiday season, the brands that prioritize content optimization will be best positioned to capture consumer interest and drive sales. Product content is the foundation of an effective holiday strategy, and brands must strike the right balance between creating, validating and distributing content. By leveraging 1WorldSync’s platform, brands can amplify their holiday content to engage audiences and drive results.
Ready to enhance your holiday strategy? Explore more insights from PowerReviews’ 2024 Holiday Shopping Trends blog and connect with the 1WorldSync team to learn how our solutions can elevate your content strategy and prepare you for a successful season.