3 Things You Need to Know About the 2023 Holiday Shopper

After a rollercoaster year, we've arrived at the 2023 holiday season. With economic fluctuations and unpredictable shopper trends, forecasting consumer behavior is more challenging than ever before.

That’s why ShipStation compiled insights from over 8,000 shoppers and businesses around the globe to help merchants understand consumers’ most up-to-date needs and how they can fulfill them during the critical fourth quarter. This holiday season, we identified three areas of opportunity for merchants: capitalizing on deal-hunters, selling on online marketplaces, and providing more premium delivery options.

Consumers Will Prioritize Finding the Best Deals

Projections for consumer spending have been highly volatile this quarter. But what we do know is that mindful spending (i.e., being more conscious of purchasing habits) will be a priority for consumers that want to cut back on expenses this holiday season. And according to our data, that’s a whopping 74 percent of global consumers.

Initially, we found that gift-givers will aim to save by shopping earlier. A third of consumers we surveyed said they would start purchasing gifts earlier than normal this year, and as many as 54 percent of shoppers planned to start before Black Friday. As we creep toward the middle of the holiday shopping season, we anticipate that consumers will continue shopping strategically, adopting habits like setting budgets, purchasing from value brands, and using cash to stick to limits. The highest proportion of consumers said they would shop during promotional events this holiday season.

Merchants: give customers the peace of mind they’re craving by offering ongoing deals throughout the season, not just on Black Friday and Cyber Monday. Ideally, start with fall promotions and keep them going until early January, and offer perks like longer return periods. This way, shoppers save more and stay connected to your brand. We found that a lot of businesses — about one in four — are planning to amp up their holiday deals this year.

Shoppers Prefer Online Marketplaces > Other Channels

E-commerce has reigned supreme since 2020, and in 2023, 60 percent of people we surveyed in the U.S. plan to do most or all their holiday shopping online. However, where they shop online may shift.

Online marketplaces (e.g., Amazon.com, Walmart, eBay, Etsy) are set to be the most popular shopping channels this quarter, with 88 percent of surveyed consumers planning to use them for their holiday shopping. Across the eight regions we surveyed, we predict online marketplaces will account for almost $253 billion worth of sales during the 2023 holiday season, with growth outpacing the wider e-commerce market.

Why? Online marketplaces offer the convenience, value and variety of product choice that today's consumers demand. And when it comes to discovering a product or brand, it’s hard to beat an e-commerce marketplace. Consumers implicitly trust them to provide great product recommendations with crowdsourced reviews.

Use online marketplaces this season to connect with larger customer bases, expand your product offerings, and boost brand exposure. If you’re new to marketplaces, you don’t need to reinvent the wheel — use an integration to import your orders and seamlessly connect to these channels.

Getting the Delivery Right Matters More Than its Price to Consumers

People who watch their spending are usually worried about delivery costs. However, our research found that during the holiday season, these shoppers might turn the other way if it means they'll get their packages quicker.

In fact, half of surveyed shoppers expect an online purchase to arrive within two days during the holidays (as standard), and over half report being willing to pay up to $9 extra for same-day, next-day, or scheduled delivery services. Why? These purchases are high-stakes, often sentimental, and have a stricter timeline. Along with quicker shipping options, clear communication (e.g., tracking emails) with expected delivery dates will help ease shoppers’ gifting anxieties.

For peak season 2023, expect shoppers to spend more strategically. They’ve probably already started their holiday shopping, will do most shopping on online marketplaces, and will opt for shipping that meets their strict holiday deadlines. To keep customers coming back post-holidays, offer earlier deals, expand your online marketplace presence, and focus on speed and transparency in the delivery experience.

Krish Iyer is the vice president of strategic partners and industry relations for Auctane, parent brand of companies like ShipStation, ShippingEasy, ShipEngine and Stamps.com. He also serves as the vice president of the Package Shippers Association (PSA), which serves as the voice of the package shipping industry.