AUSTIN, Texas–(BUSINESS WIRE)–October 11, 2022–
ShipStation, the world’s leading cloud-based e-commerce shipping solution, today released a report based on the results of a global consumer and merchant survey conducted by Auctane, which operates the ShipStation brand, and Retail Economics, an independent economic research consultancy. The Holiday Shopping Trends Report: Winning Customers Despite Uncertainty compiles information from over 8,000 consumers and over 800 merchants worldwide*. He outlines consumer downturn sentiment on spending, merchants’ high expectations for peak season sales, and shares strategies merchants can adopt to stay competitive in late 2022.
According to the report, 58% of US consumers expect to cut back on non-food spending this holiday season. If consumers behave as expected, this could mean eliminating $30 billion in consumer spending from the US market and reducing spending by 14% year-over-year. Meanwhile, around half of merchants surveyed expect online sales to increase during the holiday season.
“Inflation and economic uncertainty are forcing consumers to rethink their spending priorities this holiday season,” said Robert Gilbreath, CEO of ShipStation. “To combat this, merchants need to proactively formulate a game plan for the festive season. This involves re-examining and improving the experience they provide: from the moment an order is placed online until to last mile delivery.”
“Consumers are worried, budgets are under pressure and households are planning to cut back this year,” said Richard Lim, CEO of Retail Economics. “We believe successful retailers will be those who double down on their value proposition and use data-driven marketing to sensitively communicate festive cheer during these challenging times.”
The main findings of the report are divided into three sections. Highlights include:
The financial crisis :
The report analyzes the current economic landscape and its impact on consumers and merchants ahead of the holidays. In the United States, inflation remains the main concern of consumers. Online searches for the term “save money” increased in the United States and reached their highest level in five years worldwide. However, traders remain optimistic this holiday season. Retailers surveyed in the apparel sector are particularly confident, with 65% citing that they expect higher order volumes this holiday season than in 2021.
The carved landscape:
The report shows where consumers and merchants plan to save money during the holidays. More than 25% of consumers globally expect to reduce their spending in the clothing category. Meanwhile, more than a third of merchants surveyed will react to cuts by increasing delivery costs, and more than a quarter will extend delivery times. This is a critical misalignment, as the report found speed and cost of delivery to be the two most important conversion factors for online shoppers.
Adapt and thrive:
ShipStation challenges merchants to carefully consider how they define and communicate their value proposition. The research identifies five critical areas for improvement that traders are recommended to prioritize to successfully address today’s economic challenges. The report also contains a matrix of the top four consumer archetypes marketers should be paying attention to this holiday season, mapped against attitudes toward personal finances and underlying financial security.
For additional findings and to download the full ShipStation report, Holiday Shopping Trends Report: Winning Customers Despite Uncertainty, visit here today.
*This two-sided research was conducted by Retail Economics and Auctane, a leader in shipping and fulfillment software, which operates trusted brands such as ShipStation, Stamps.com, Packlink, ShippingEasy, ShipWorks, ShipEngine, Endicia, Shipsi, GlobalPost and Metapack. The report contains economic modeling and information based on data developed from a nationally representative consumer panel survey comprising more than 8,000 households in the United States, United Kingdom, Canada, Australia, Germany, France, Italy and Spain. The research also details contributions from over 800 companies in the US, Canada, UK, France, Germany, Italy, Spain and New Zealand.
Every day, tens of thousands of e-commerce merchants rely on ShipStation to solve day-to-day challenges with importing orders and processing shipments. A trusted leader in shipping software since its inception in 2011, ShipStation helps online sellers scale their businesses and deliver exceptional customer experiences, with an intuitive online solution that enables them to efficiently ship orders, wherever they sell and however they ship. The multi-channel, multi-carrier platform offers the most integrations of any e-commerce solution, with over 300 partnerships with major shopping carts, marketplaces, carriers and fulfillment services including USPS, UPS, FedEx, Amazon, Shopify and BigCommerce. ShipStation is a member of the Auctane family of companies and is headquartered in Austin, TX. Auctane brands include Endicia, GlobalPost, Metapack, Packlink, ParcelGuard, ShipEngine, Shipsi, ShipStation, ShippingEasy, ShipWorks and Stamps.comwith offices in Atlanta, Austin, El Segundo, London, Madrid, St. Louis, Sunnyvale and Zielona Gora.
For more information, visit https://www.shipstation.com.
About Retail Economics
Retail Economics is an independent economic research consultancy focused on the consumer and retail industry. Retail Economics provides independent thought leadership on key economic and retail trends and analyzes their impact on the industry. Retail Economics provides exclusive data on industry growth, behavioral trends, channel performance and forecasts.
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PUBLISHED: 10/11/2022 08:00 AM/DISC: 10/11/2022 08:02 AM