In Customer Centric, Retail
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Consumer Expectations for the Upcoming Holiday Season

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he holiday season is a critical time for retailers, with a significant portion of annual sales taking place in the final quarter of the year. However, consumer shopping habits are constantly evolving. As we look ahead, understanding consumer expectations is crucial for retailers who want to maximize their holiday sales and create meaningful connections with shoppers.

Here’s a look into consumer expectations for the upcoming holiday season and how businesses can adapt to meet those expectations.

Consumers Continue to Start Shopping Earlier

Gone are the days when most shoppers waited until Black Friday to kick off their holiday spending. Consumers are starting their holiday shopping earlier than ever before, a trend that continues to grow. Many consumers now begin their holiday shopping as early as October, spreading out their purchases over several months to take advantage of early deals and avoid last-minute stress. 

Thirty-two percent of U.S. consumers plan to start their holiday shopping between July and October, according to a recent survey by Gartner. Launching holiday sales and exclusive promotions earlier can capture the attention of shoppers. With early shopping comes early demand. Stocking up on best-selling items and strengthening the supply chain can help retailers minimize inventory issues, maximize sales opportunities, and mitigate supply chain disruptions during the holiday rush

consumer expectations for the upcoming holiday season
Consumers shop across multiple channels and expect a seamless integration between online and in-store shopping.

Consumers Shop Across More Channels

Consumers shop across multiple channels and expect a seamless integration between online and in-store shopping. Whether they’re browsing on their smartphones, researching on their laptops, or visiting brick-and-mortar stores, they want their experience to be consistent, smooth, and connected. Seventy-three percent of consumers blend online research, physical store visits and options such as buy online pickup in-store or in-store returns before making purchase decisions, according to a study from ShipStation and Retail Economics. 

Ensuring that pricing, promotions, and stock levels are consistent across channels is essential. Retailers that invest in technology that integrates online and offline operations can offer a cohesive shopping experience, enabling customers to start their journey on one platform and continue it on another effortlessly. Utilizing data analytics to personalize email marketing, recommend products, and create targeted promotions across all channels can make shopping more convenient for customers and more profitable for businesses. 

Consumers Want Convenient and Hassle-Free Returns

The holiday season inevitably increases the volume of returns and exchanges. With the rise in online shopping during the holiday season, consumers expect a convenient and hassle-free return process. Seventy-six percent of online shoppers said they review the return policies of eCommerce stores before sending a gift, according to a survey from eCommerce platform Phelps United. Most said they would be more likely to shop at an online retailer in the future if it provided free shipping on returns (82%), a flexible window of 30 days or more for returns (58%), and a hassle-free or no-questions-asked return policy (52%). 

Retailers can meet these expectations by making the return process as quick and easy as possible. Transparent communication about return policies, along with streamlined processes for returns and exchanges, can alleviate potential customer confusion and frustration. Extended holiday return windows and free return shipping can improve customer satisfaction during the holidays. Letting customers return online purchases to physical stores creates opportunities for upselling while enhancing convenience.

consumer expectations for the upcoming holiday season
Seventy-six percent of online shoppers said they review the return policies of eCommerce stores before sending a gift, according to a survey from eCommerce platform Phelps United.

Consumers Expect Faster and More Flexible Fulfillment Options

With the continued rise of eCommerce, consumers expect faster, more reliable, and flexible delivery options. Next-day, same-day, and even one-hour delivery services are becoming standard expectations, particularly during the holiday season when timelines are tight. Offer a range of delivery and fulfillment options, including delivery, buy online pickup in-store and curbside pickup, to enhance customer satisfaction and provide customers with time-saving convenience during the holiday season.

Investing in last-mile delivery and fulfillment technologies, such as route optimization, delivery tracking, and micro-fulfillment centers, can help retailers increase operational efficiency, shorten delivery times, and enhance resource utilization. Real-time tracking has also become a must, as consumers expect full transparency about where their orders are at all times. Providing real-time updates on delivery or pickup status can keep customers informed throughout their shopping journey, improving the fulfillment experience.

With consumers’ needs and behaviors continuously evolving, understanding what they expect during the holiday season is critical to meeting and exceeding those expectations. Staying attuned to these expectations can help businesses not only meet the demands of today’s consumers but also build stronger, long-term relationships with them beyond the holiday season. 

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