10.23.23
Fifty two percent of shoppers expect to spend more this holiday season, according to a new study by ESW, a direct-to-consumer (DTC) ecommerce company. The survey further found that more than half (53%) of younger consumers, ages 18-29, will use TikTok for their holiday gifting.
“While holiday spending will be up this year, our survey found that 52% of shoppers have a pessimistic outlook for their budget, with 20% expecting to spend more and get less due to inflation,” said Martim Avillez Oliveira, Group Chief Revenue Officer, ESW. “Retailers have an opportunity, though, to elevate their online experience to take advantage of shoppers moving more of their holiday budget online.”
Key findings include:
“While holiday spending will be up this year, our survey found that 52% of shoppers have a pessimistic outlook for their budget, with 20% expecting to spend more and get less due to inflation,” said Martim Avillez Oliveira, Group Chief Revenue Officer, ESW. “Retailers have an opportunity, though, to elevate their online experience to take advantage of shoppers moving more of their holiday budget online.”
Key findings include:
- Forty-percent of shoppers say that they will shop more online this year, with four times more shoppers planning to increase their online shopping than those who plan to shop online less.
- Direct to Consumer retailers must be responsive to all emerging channels. TikTok has become a top discovery resource across generations. Thirty-six percent of all respondents will use TikTok for holiday shopping this year. For younger consumers (ages 18-29), nearly 25% will use TikTok to source specific gifts.
- Surprisingly, older respondents are most likely to order gifts from TikTok Shop, with: 16% of those ages 40-60 planning to purchase gifts from TikTok; 8% of shoppers ages 18-29 planning to purchase gifts from TikTok; and 10% of all shoppers planning to purchase gifts from TikTok.
- October 22nd is the average day that shoppers will start their holiday gift buying. Nearly one-quarter (23%) of shoppers surveyed are “early birds” who started prior to October. These shoppers also spend almost 10% more, on average, than all shoppers, and 22% more than last-minute shoppers. Last-Minute shoppers on average start shopping in November or later and have an 11% lower budget than all respondents and 17% lower than early birds.
- Shoppers will only pay an average of $6.43 for expedited shipping, well below the average cost to merchants of $9.35, the starting price for Priority Mail from the USPS. Respondents say that they will wait on average of nearly one week for their purchases in exchange for free shipping. These delivery expectations are unchanged between early bird and last-minute shoppers.
- $827 is the average budget for holiday gift giving this year, and 65% of respondents who said that they will do more online shopping this year also plan to spend more overall.
- Ecommerce has become ubiquitous for holiday shopping, with 90% of all shoppers planning to purchase gifts online this season.
