Suggesting that the holiday season in America has about $189-billion in online sales on the line here in 2020, the Associate Editor of the website Retail TouchPoints, Bryan Wassel, is suggesting transparency and social outreach are essential for those seeking to get their share of sales as the pandemic marches on.
Wassel writes, “Retailers have reason for cautious optimism this holiday season: shoppers are expected to spend an average of $997.79 on gifts, holiday items and additional ‘non-gift’ purchases, according to data from the National Retail Federation and Prosper Insights & Analytics. While this figure is down $50 from 2019, given 2020’s overall uncertainty, such a slight decline would represent a significant victory.”
Wassel contends that ecommerce in particular is set to continue the massive growth trajectory it’s achieved all year. Adobe expects online holiday spend to surpass $189 billion, up 33-percent year-over-year, compared to a 1-to-1.5-percent increase for retail overall. Total ecommerce spend could reach as high as $200 billion via a combination of government stimulus and further physical store closures.
Wassel calls the challenging holiday season a potential opportunity for retailers that understand what shoppers are expecting and subsequently rise to the occasion. He says these are some of this year’s most relevant projections:
- Social distancing will jack up deliveries: People want to give their loved ones gifts even if they’re not celebrating the holidays together, and many will do so by having presents shipped directly from the retailer to the recipient — adding volume pressures to the last mile;
- Social media is key to making a splash: Retailers must engage with customers via multiple touch points, particularly social media, to stand out in the crowded holiday ecommerce space;
- Retailers will look for ways to save on last mile: Tight transportation supply will make last mile expensive, but an emphasis on digital items like gift cards, along with encouraging curbside pickup on major shopping holidays, can help keep costs under control;
- Stressed shoppers want a sense of safety: Picking up an item in-store both saves money for retailers and ensures timely arrival for shoppers, but retailers need to let their customers know safety is top of mind if they want to draw them back to physical locations.
Wassel argues, “The pandemic’s impact on shopping habits isn’t abating: 66-percent of respondents will prefer home delivery over other fulfillment methods, according to a survey by Oracle. Adding to the overall shipping volume will be those consumers who would normally have purchased a gift in-store and brought it to the recipient themselves. With travel restricted by COVID-19, these shoppers are highly likely to choose shipping directly to the gift recipient.”
