With the holiday season quickly approaching, spending is at the top of everyone’s mind as we try to navigate this period amidst tumultuous economics. ShipStation examines how people are looking to spend and what ecommerce merchants can do to help boost sales in Q4.
ShipStation surveyed merchants and customers and collated the data in the Holiday Shopping Trends Report. It found that rising costs have put consumers and merchants under pressure which may affect spending this holiday season. Six out of ten consumers surveyed are currently worried about inflation, and 90 percent of merchants expect inflation to impact their business. “Inflation and economic uncertainty are forcing consumers to rethink their spending priorities this holiday season.” Says David Boyer, ShipStation General Manager. “To combat this, merchants must proactively formulate a holiday season game plan. This includes re-examining and improving the experience they offer: from the moment an order is placed online through last-mile delivery.”
The report found that as inflation persists, consumers may begin to adopt recessionary behaviours. This may manifest as consumers cutting back spending, trading down, and cancelling spending. ShipStation identifies apparel and electronics as areas that may be hit hard. Consumers are set to cut back $46 billion in gift spending this year, $1.3 billion in Australia alone.
Respondents identified the cost of delivery as being their most important consideration when shopping online. Businesses have responded to rising costs by increasing delivery fees and timeframes, potentially alienating these customers as they look to cut costs. According to the report, over a third of businesses surveyed are increasing delivery costs and 26 percent are extending delivery timeframes.
To redefine customer experience this holiday season, the report found retailers should focus on the following – core customer groups, lower prices and optimising online delivery service. ShipStation recommends an investment in promotional content, winning new customers and looking to calculate return on investment. To guide retailers with shipping and fulfilment strategies, The 2022 Peak Sales Season Playbook presents strategies to remain relevant and profitable during the holiday season. ShipStation’s tips to improve your last-mile logistics with point-to-point delivery can be found here.
To get your copy of The 2022 Peak Sales Season Playbook click here.