Give yourself the gift of your best revenue year yet this holiday season. Check out the top retail trends to watch and learn more about what this data means for your eCommerce business. Get ready to jump into predictive modeling, ROI, and more with a very merry trend report from our analytics team!
What Can Retailers Expect This Holiday Season?
We’ll be the first to admit that 2020 wasn’t on our holiday wishlist. There’s no denying that it was an unusual year, to say the least. Retail vendors also felt the effects of 2020, however, the impacts of the year’s holiday shopping may be surprising. Market analysts have come full circle in examining 2020’s data and extrapolating what this very strange year means for eCommerce.
As anticipated, overall holiday shopping decreased from the usual $998 the average American spends on holiday items (gifts, decor, treats, etc.). This decline was experienced around the globe and as such cannot be attributed to a specific demographic. What may be more intriguing to eCommerce vendors, however, is the rise in online shopping. CNBC reported that “Americans spent a record online over [the] 2020 holidays, and more e-commerce gains are expected. Online shopping over the 2020 holidays in the United States grew 32.2% from 2019’s, totaling $188.2 billion, according to Adobe Analytics.”
More and more shoppers are leaving behind the crowds and stress of brick-and-mortar stores and logging on from their laptops, smartphones, and tablets instead. The convenience of online shopping was highly prioritized over the holidays and can be expected to remain the preferred choice for the majority of customers. When it comes to in-store shopping vs. online shopping for the upcoming holiday season, eCommerce is the reason for the season.
Within this demographic, most shoppers are choosing to use their mobile devices for their holiday gift shopping. It’s the perfect way to browse while enjoying some downtime, commuting on public transit, or relaxing on the couch with a cozy movie marathon. To boost browsing to shopping cart conversion rates, it’s important to ensure your eCommerce site is mobile-friendly from product page to checkout. Shoppers expect a smooth online experience and will quickly move on if a website is not delivering a seamless buying experience. Unlike in-store sales, the online market features stiff competition, with other stores simply a click away rather than a drive to the next town. That means retail vendors need to be on their A-game when it comes to designing a user-friendly website with sleek automation and easy browsing.
When it comes to overall post-pandemic holiday trends for retail, businesses can anticipate more good news. Holiday retail sales are likely to increase between 4% and 6% in 2022, peaking during the November to January timeframe. With November right around the corner, now is the perfect time to restock and add new inventory. Experts note, “Deloitte also forecasts e-commerce sales will grow by 12.8% to 14.3%, year-over-year, during the 2022-2023 holiday season. This will likely result in e-commerce holiday sales reaching between $260 billion and $264 billion this season.”
What Are the Hottest Product Trends This Holiday Season?
Now that we’ve checked off how customers are buying and where they’re buying from our holiday gift list, it’s time to take a closer look at what people are buying for the 2022 holiday season.
It’s no surprise that toys are at the top of everyone’s holiday gift list. Unwrapping presents beneath a sparkling Christmas tree is one of our fondest holiday memories. It’s no wonder we want to make the season just as special for the little ones in our life.
Amazon has released the hottest toys of the 2022 holiday season, with cuddly Squishmallows, learning and science-based toys, Hot Wheels, Disney (Encanto), and National Geographic topping the list. Board games have also been rediscovered during the past year and are sure to be ranking well with online shoppers. Sustainable toys are also a growing industry as more and more households opt to support small businesses that offer plastic-free fun.
Ugly sweaters never go out of style, and the holiday clothing market looks strong for 2022. One key item to look out for is an uptick in personalized clothing, jewelry, and accessory options. Sites like Etsy have become big competitors in holiday shopping with a myriad of custom colors, monogrammed text, and unique finds custom-tailored for each visitor.
Leveraging product customization through easy-to-use WooCommerce plugins and product configurators in the fashion industry is a great way to see a steady ROI in the coming busy season.
3. Outdoor Recreation
Many shoppers are planning another great year of “staycation” style recreation. We can anticipate more roadtrips, more camping trips, and more outdoor activities for the whole family. Outdoor recreation equipment will be a hot commodity this holiday season as more and more families trade in plane tickets for paddleboards and tents.
4. Decor and Home Goods
Decor and home goods are expected to be strong contenders in this year’s holiday gift-giving blitz. From dorm rooms to home offices, many shoppers ate looking to purchase useful, practical, yet aesthetic items for their loved ones. The latter trend — home office decor — is a growing market for eCommerce and a positive takeaway from 2020.
Be sure to capitalize on this trend while it’s hot by restocking on lamps, desks, wall art, tech accessories, and more!
5.) Christmas Cookies Gone Virtual
Baked goods are everyone’s favorite item to give and receive. The time-honored tradition of sending tasty treats is still expected to be strong in 2022. Online stores have the advantage here when it comes to shippable food items, delivery services, and a wide array of product options for discerning foodies.
Candy, cookies, and savory snacks are sure to be tasty additions to the best gifts of 2022.
Looking for more tips on tailoring your eCommerce business strategy? Reach out to our experts for a very merry holiday season!