Today Fiverr released new research detailing how retailers are preparing for the upcoming holiday season. The new global survey of over 2,500 consumers and over 2,500 small-to-medium business leaders reveal a more strategic approach to how businesses look to level the playing field against larger e-commerce brands while also capturing Gen-Zers’ shopping habits and grappling with the economic hurdles like inflation.
The top trends that emerged from the data include:
Smaller retailers have found their place among larger companies like Amazon and Temu with 53% of surveyed businesses not considering competition from larger e-commerce brands as a challenge this year
- Inflation becomes the predominant concern for businesses, with 48% of global respondents citing it as their primary challenge
- A third of retailers surveyed cite staffing shortages ahead of the holiday season, simultaneously, a third of retail and e-commerce businesses are now hiring freelancers to support their operations
Surveyed retailers are investing in various strategies to reach new audiences – ranging from increased social media presences to steep discounts – and to satisfy evolving customer attitudes
- Compared to last year (55%) over 80% of businesses are now offering discounts on their products to satisfy the deal-hunters
- Customers are continuing to prioritize good deals (42%), free shipping (32%), and high-quality products (30%)
- Last minute shopping remains a priority as well, with 18% of global respondents focusing on fast shipping times
- 52% of people surveyed will start buying presents in October and November while 18% are hitting the summer sales to find gifts
Digital marketing remains the key to success for retailers and e-commerce brands this holiday season, as more and more Gen-Zers are willing to spend more on gifts they find online
- 43% of Gen-Zers are planning to spend more this holiday season, compared to the 37% of millennials that plan to do to same
- 57% of U.S. retailers surveyed are investing in social media ads to reach their target audiences
- Global surveyed retailers are investing in: 39% social media ads, 35% in influencer marketing campaigns, 33% email marketing, 29% updated product pages and improved SEO functionalities
Social media remains the go-to place for Gen-Zers looking for the perfect gift this holiday season
- Amongst Gen-Zers: 34% use TikTok shop; 25% get their gift ideas through social media influencers’ recommendations; and 14% use generative AI search to help with gift buying
- In the U.S., TikTok shop continues its dominance – nearly 54% of Gen-Zers find their gifts on this platform alone
- Surveyed U.S. Gen-Zers also cite social media as a major influence in their holiday shopping – a third of respondents plan to find gifts via Facebook and Instagram ads, and nearly a quarter (24%) through influencer recommendations
With shopping increasingly moving online, nearly 7 in 10 retailers (68%) surveyed are now implementing AI throughout their operations this holiday season – and they want Gen Z to take notice
- 41% of retailers surveyed planning to invest in AI tools to expedite work, and 35% who want to embed AI throughout the entire customer journey with chatbots, customer personalization, or customized marketing campaigns
- AI is already becoming second nature for Gen Z, over 54% of Gen-Zers use AI to assist in their holiday shopping – whether it be to find the best prices (17%), find new gift ideas (22%), or to even create holiday presents themselves (18%)
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