From October 1 through New Year’s Eve 2022, consumers spent $211.7 billion, with some taking advantage of deep discounts on electronics, toys, and apparel. At a high level, merchants saw 2.5 percent growth year over year, and the single biggest shopping day was Cyber Monday, which accounted for $11.3 billion of the season’s total.
However, January is a good time for independent software vendors (ISVs) and value-added resellers (VARs) to dig deeper into holiday shopping statistics to understand consumer trends and how to provide their clients with solutions that will help them have a successful 2023.
Key 2023 holiday shopping statistics to discuss with your clients include:
- Buy Online, Pick Up In-Store (BOPIS) Dominates
BOPIS consistently outperformed standard and expedited shipping throughout the season. The exception to this was a 5.42 percent peak in expedited shipping from December 10 through 21, most likely due to limited BOPIS options available during this time. Many of your clients offer a BOPIS option. However, not all merchants have found an efficient way to manage it and provide the level of service that customers expect. Provide them with the technology they need, including integrated e-commerce and in-store systems, real-time inventory management, mobile solutions, and an omnichannel payments platform, to optimize their BOPIS processes.
- Shopping from a PC Makes a Comeback
Holiday shopping statistics show that purchases made on mobile increased slightly from 43 percent in 2021 to 44.88 percent in 2022. However, purchases from PCs fared better. Conversion rates for desktop purchases were double that of mobile across the entire season, reaching their highest on Cyber Monday at nearly a 7 percent conversion rate compared to mobile’s 3.6 percent on that day. Additionally, from October 1 through December 31, the average number of items per order on desktops was around four, while smartphones and tablets consistently saw around 2.7 average per order. The takeaway here is that your clients’ e-commerce strategies should be optimized for shopping on any device. Moreover, it’s important to provide consistent experiences from mobile apps to e-commerce websites – and in-store self-service kiosks. Seamless shopping and payment experiences will pave the way for higher conversions overall.
- Merchants Feel the Power of Social Media
Social channels are influencing consumer shopping, particularly in younger demographics. A whopping 80 percent of Gen Z shoppers planned to use social media to search for holiday gifts this past season. However, 74 percent of that same group intended to then purchase via a brand’s website. Across the board, however, 34 percent of shoppers across generations had planned to use social platforms to search for or buy gifts. Moreover, the trend is gaining momentum. U.S. social commerce is expected to hit 100 million shoppers in 2023. Provide your clients with the tools they need to build a strong social media presence and capture sales directly on social media.
The Effects of Inflation
It’s worth taking a closer look at retail sales growth from 2021 to 2022. Before last year’s holiday shopping season, Deloitte predicted a 4- to 6-percent increase in holiday spending, mostly tied to higher prices. Before the start of the season, consumers had planned to comparison shop for the best products at the best prices, aligning with the 65 percent who considered price the primary influence on shopping decisions this year. Overall, 35 percent had planned to purchase less. While consumers did spend more in 2022 than the previous year, it was only by a 2.5 percent margin. Considering that 2020 saw a 32 percent increase in spending over 2019, it’s clear that inflation and tight budgets attributed to lackluster growth for the 2022 season.
For some of your clients, that may signal a need to tighten their belts this year. Provide merchants with the technology and information they need to automate, streamline processes, and operate more efficiently in 2023.
Timing Is Important
Holiday shopping is starting earlier and earlier each year. In fact, October’s retail sales were better than November’s. While your clients may be taking a beat to recover from 2022, holiday shopping statistics confirm that consumer behaviors continue to evolve, and retailers need to adapt.
Urge your clients to plan now, factor in these holiday shopping statistics and facts to guide their decisions, and invest in technology that will produce ROI when holiday shoppers return next year.
