Contributor
Carli Gernot, Content Development Specialist
A few months ago we shared New Engen’s 2022 U.S. Holiday Guide, which included our hot takes on this year’s holiday season. Well, we’re back with an update and some historic industry numbers.
Black Friday 2022 saw shoppers spend a record $9.12 billion online, as per data from Adobe Analytics. Online sales rose 2.3% year-over-year and Buy Now, Pay Later (BNPL) payments increased 78% when compared with the week beginning November 19. This high level of spending predicted Cyber Monday success, which saw over $11 billion in online spending.
“Buy online, pick up in store” (BOPIS) options for holiday shoppers are increasing as retailers and brands attempt to appeal to consumers who are accustomed to omni-channel convenience. We’re seeing examples of the addition of this service from higher end names as well as those focused on lower price points.
Designer fashion brand Perry Ellis added BOPIS to it retail offerings. This comes after the retailer raised its “free shipping” threshold to $99 from its previous $79. Five Below, a budget retail chain, added BOPIS service ahead of Black Friday after piloting — and adding — same day delivery service with Instacart in 2020 while GoPuff, the quick-commerce platform, added customer features including BOPIS, 24-hour online ordering, scheduled delivery, and gifting.
Secondhand shopping is losing the stigma it once carried in terms of gifting used items. Indeed, according to Deloitte’s 2022 Holiday Retail Survey, 32% of shoppers said they plan to buy resale items as a way to offset rising prices.
In response, we’re seeing more secondhand options being touted as great gift ideas while staying on budget. Mercari, the online marketplace for buying and selling used items, announced a series of promotions highlighting how secondhand shopping is a wise option this holiday season. The offers included 10% off purchases during the week of Black Friday and 30% off a second purchase made within the following week.
Poshmark announced a new cyber shopping holiday between Small Business Saturday and Cyber Monday — Secondhand Sunday — meant to encourage secondhand holiday gift buying.
The week leading up to Black Friday saw a rise in cart abandonment promos — those discounts and deals that appear if shoppers leave items in their online cart. Salesforce data shows that the cart abandonment rate fell 9% on Friday compared to the three weeks previous.
Online shopping around the holidays means searching for that perfect gift, at the right price, with payment options, AND it has to arrive in time! Often, consumers begin their shopping trip, put items in their online cart and then decide against purchasing.
Department store Saks Off 5th has a solution to help shoppers understand the process more clearly. Guaranteed Delivery Date, a delivery visibility tool provided on Saks Off 5th’s online shopping platform, allows customers to see potential arrival dates for purchases before the order is shipped. This way, customers can make more informed decisions as they are shopping for holiday gifts.
Spotify rolled out a user choice billing (UCB) tool which lets subscribers of Spotify decide what method of payment they want to use, including monthly payments; and Expedia collaborated with AfterPay to offer travelers BNPL flexibility.
The ways in which digital marketers are able to engage with budget-minded shoppers this holiday season are growing to include more omni-channel synergy, the embrace of secondhand giving, and more transparency and flexibility than ever. Businesses should incorporate these trends’ guidance around choosey consumers, squeezed budgets, and what shoppers want to know from brands — doing so will help them to navigate through the 2022 holiday season and beyond with profitable outcomes and satisfied customers.