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STAMFORD, Conn. — Consumer data released today by Pitney Bowes suggest that shoppers will buy more online this holiday season than they did last year.
The firm’s BOXpoll finds that just 20% of shoppers say they expect to spend less online this year. Nearly a third of consumers plan to shop online more in 2023 and about half of online shoppers said they would be spending the same amount as last year.
“While U.S. consumers grapple with economic challenges including the lingering impacts of inflation, their discretionary spending, particularly online, appears to defy gravity headed into the holidays,” said Vijay Ramachandran, vice president of go-to-market enablement and experience at Pitney Bowes. “Online sales so far this year are up more than 7% versus 2022, even though online prices have been on a deflationary trend for more than a year.”
The BOXpoll survey finds that about half of those planning to spend less on online holiday shopping, are also cutting back on overall or non-holiday purchases this year. But that’s down from the 71% in last year’s survey who told researchers they would be spending less for holiday and non-holiday purchases, which Pitney Bowes said is an indicator that U.S. consumers are holding up better than might be expected in 2023.
“These survey results reflect what we’re seeing in the market and with our own clients: Consumers are having a hard time letting go of COVID-era shopping habits — and rather than curtail overall spending, they’re ‘trading down’ to lower-priced brands and lower-value product categories as they seek to make their budgets go farther in reaction to perceived inflation,” Ramachandran said. “Retailer earnings from Q2 saw mid-priced and discount brands reporting stellar quarterly results at the expense of more premium brands and department stores. We know from consulting with our clients that mid-price apparel, as well as accessories and beauty brands, are optimistic about the holiday season, while sporting goods and home décor brands are approaching peak more cautiously.”
This year’s survey finds that consumers will do what it takes to earn free shipping, though 39% of respondents said it’s become harder this year to qualify for free shipping.
The results also revealed consumers are most likely to either add more items to their cart to qualify for free shipping (44%) or try to find the same item with a different online brand that will offer free shipping (37%).
