Four Technologies Shaping the Holiday Shopping Season

n recent years, advancements in retail technology have transformed how businesses operate, enabling smoother, faster, and more personalized shopping experiences. As the holiday season approaches, retailers are ramping up efforts to capture consumer attention and streamline operations. Technology plays a crucial role in ensuring businesses can meet the demands of holiday shoppers while providing an exceptional customer experience. 

Here’s a look at four retail technologies that are shaping the future of holiday shopping and helping retailers meet the demands of the season.

With consumers expecting tailored shopping experiences, retailers are leveraging AI to analyze customer data and deliver personalized product recommendations, offers, and services. Retailers can use AI to predict which items will be in high demand, ensuring that popular holiday products remain in stock. AI-powered chatbots are becoming increasingly popular. These tools provide real-time customer service, handling inquiries and offering product recommendations, all while freeing up human employees to focus on more complex tasks during the holiday rush.

Walmart is using generative AI to improve the data quality of its product catalog, leading to a better experience for its customers and associates. Walmart used large language models to create or improve over 850 million pieces of data across its product catalog. The primary in-store improvement is that associates’ can use in-store technology like mobile tools to quickly locate inventory and get items on shelves or to waiting customers. AI improves the details on product display pages, helping customers determine whether a given product is what they want to purchase.

Consumers are increasingly turning to social media platforms for their holiday shopping needs and retailers are adapting accordingly. Seventy-seven percent of business leaders are enhancing social commerce capabilities, according to Commercetools’ new report. Sixty-nine percent of business leaders are ramping up investments in social media advertising. Facebook Shop/Marketplace is the most popular among brands, with 71% of businesses planning to use the platform for holiday sales. TikTok Shop is also on the rise, with 55% of companies planning to invest there for holiday campaigns. 

Amazon recently partnered with two social media platforms to expand the reach of its eCommerce offering. The company has partnered with TikTok and Pinterest to allow people to purchase products from Amazon ads directly within the TikTok and Pinterest apps. Shoppers can view Amazon products, link their social media accounts, and complete a checkout with Amazon without leaving the social media apps. Users who choose to link their accounts in the U.S. can see real-time pricing, Prime eligibility, delivery estimates, and product details on select Amazon product ads in TikTok, streamlining the shopping experience.

Innovations like self-checkout, mobile payments, and cashierless stores can make the checkout process easier, faster, and more convenient. Sixty-three percent of consumers who shop in stores more frequently than usual during the holiday season say that self-checkout technology and mobile payment solutions are important when doing their holiday shopping. Nearly half of consumers place the same importance on just walk-out technology, according to PwC’s 2024 Holiday Outlook survey.

Retailers are increasingly embracing innovative checkout technologies, enabling customers to avoid long lines which is especially important during peak shopping periods when long lines can deter customers. Sam’s Club is preparing to launch its first store without checkout lanes this month in Texas. The store will require customers to use a Scan & Go app to purchase items on their smartphones as they shop. Where most stores would have cash registers, the retailer will instead display online-only items such as giant Christmas trees and diamonds. Workers will have around four times as much space to prepare eCommerce orders for curbside pickup and home delivery.

U.S. consumers are expected to spend a record $240.8 billion online this holiday shopping season, according to Adobe forecasts. With more online shopping comes the inevitable pressure on delivery operations. Retailers are increasingly using technology to optimize delivery routes, increase visibility, and ensure timely delivery, especially during the busy holiday season. Technologies such as route optimization software, real-time visibility tools, and delivery management solutions can help retailers make deliveries faster and more efficiently. 

With the right tools, retailers can manage deliveries more effectively and easily adjust to delivery disruptions or spikes in demand during the holiday rush. Additionally, real-time tracking allows customers to monitor their orders and reduces customer service inquiries. Offering accurate, transparent delivery information can lead to increased customer trust and repeat purchases.

Retailers who embrace these technologies are better positioned to meet the challenges of the holiday season and capitalize on the opportunities it presents. Looking ahead, these technologies will continue to evolve and play an even more significant role in shaping retail landscapes during the holiday season and beyond.

For more information about how our delivery management solution can help you manage your deliveries more efficiently this holiday season, please contact info@bringoz.com.