5 Expert Predictions for the Peak Holiday Shopping

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1. Consumers will plan for a shorter holiday shopping season

This year, the holiday season is shorter, with only 27 days between Thanksgiving and Christmas. But know this: the shorter holiday shopping season isn’t holding back consumers.

Tapcart’s 2024 BFCM Consumer Trends report shows nearly 6 in 10 shoppers start their holiday shopping in October or November. And 44% plan their BFCM purchases more than a week in advance.  

“The shorter time gap between holidays will have shoppers beginning their holiday phone database shopping earlier, and, with the logistical challenges that present, will lead to delivery issues and backlogs that will be hard for retailers—this can negatively impact the overall customer experience,” says Forbes retail contributor and e-commerce reporter Kaleigh Moore.

To manage customer expectations and keep up with consumer demand, marketers and retailers must prepare in advance for holiday campaigns, secure sufficient inventory, and optimize supply chains for increased efficiency.

2. Budgets will be tighter this year

McKinsey finds that consumers across all generations are trading down. In other words, consumers this year are actively searching for better prices or reducing the number of items they purchase.

But consumers aren’t the only ones facing budget constraints this year. While digital marketing costs are growing, the average marketing budget is falling by 15%.

The challenge for marketers this holiday season will be to maximize ROI despite increased costs and limited budgets. Eli Weiss, VP of retention advocacy at Yotpo, explains how marketers can cope.

“Marketers are looking to cut corners and optimize for profitability. When it comes to retention, most brands will cut the spray-and-pray tactics that cost a fortune and aren’t ROI-friendly and, instead, look for opportunities to put as much focus on the right person as they have put on the right message.”

Weiss also recommends ways marketers can maximize their marketing budgets this year. “Make sure you’re only paying for what you use. Cut bills that make you pay for every customer you have in your data warehouse. Then, start measuring contribution margin by channel and work from there.”