US e-commerce holiday spending to jump 7% this year: Report

Online shoppers are anticipated to defy the so-called "vibecession" this holiday season, with spending expected to rise by 7 per cent compared to last year, according to the latest Holiday Ecommerce Pulse projection from Signifyd. The Cyber Five period, which kicks off with Thanksgiving, is projected to see an 8 per cent increase in e-commerce sales, marking a robust outlook for online retailers despite consumers’ cautious spending habits.

Key findings from Signifyd’s report indicate that while consumers are increasingly opting for budget-friendly alternatives, overall e-commerce spending during the crucial fourth quarter (October to December) will see significant growth. This increase reflects the ongoing trend of consumers trading down from premium products to more affordable substitutes, resulting in a 3 per cent drop in average online order values in August compared to last year.

The report highlights that even with an 11 per cent rise in overall e-commerce spending and a 15 per cent increase in the number of orders in August, the value of individual orders decreased, underscoring a cautious consumer mindset.

The August Ecommerce Pulse data revealed mixed results for back-to-school shopping, with traditional categories showing varied performance. Overall, e-commerce sales increased by 11 per cent year-over-year in August and fashion and apparel sales rising by 18 per cent. Killough’s holiday analysis predicts that the fashion and apparel category will see a growth of 12 per cent during the 2024 holiday season compared to 2023.

A notable shift in the shopping calendar will contribute to December’s projected 18 per cent increase in spending, as two of the five major shopping days will fall in that month. October is expected to see a 5 per cent rise in e-commerce spending, while November's sales may decline by 2 per cent compared to last year.

Phelim Killough, senior data analyst at Signifyd, who conducted Signifyd’s latest shopping research noted, “You could say we had a strong month in terms of demand. Demand was high, but when consumers got to the checkout, they showed restraint. We’ve seen the same trend for many months now. It’s a sign that retailers should be ready to appeal to shoppers with discounts during the upcoming holiday season, or to otherwise find ways to distinguish their offerings from what competitors are offering, potentially at a lower price.”

Fibre2Fashion News Desk (HU)