According to a survey, Amazon remains the lowest-price U.S. retailer this year—and in the previous 7 years.
This is good news for consumers, who were able to save more from buying on the platform. But sellers are all too familiar with the complex fee increase Amazon implemented this year.
To boost your margins before the year ends, we prepared some digestible and actionable information you can add to your holiday tactics.
- Generations’ holiday spending habits 📌
- Goodbye costly fees, hello better margins 👋
- Solutions to holiday selling challenges 💡
HOT TOPIC
As the anticipation for the holidays builds up, it’s important to note that many factors will contribute to this year’s sales. And according to a report by TWICE, different generations have different approaches for each.
🛞 What’s driving consumers this season?
We summarized ShipStation’s latest consumer survey of 1,000 U.S. consumers last October 2024 to give you valuable holiday insights:
1. Spending budgets
- With 28% of Gen Zers as the expected highest spenders, the younger generations will definitely influence this year’s holiday spending. 💸
- Meanwhile, 22% of baby boomers plan to spend $250–$500 on non-essentials.
2. Social commerce
- 65% of shoppers are sticking with ecommerce platforms like Amazon and Etsy.
- 46% of big-spending Gen Zers will likely use socials like Instagram and TikTok; only 6% of baby boomers plan to do so.
- 24% of consumers are also going for small and independent brands.
- It’s worth noting that recommerce is also growing, with 22% of Gen Zers opting for secondhand platforms like Poshmark and eBay. ♻️
3. Delivery times
- 40% expect their orders to arrive within 3–5 days.
- 17% of Gen Z expect orders within 24 hours, making them the most impatient respondents. But they are willing to pay for faster shipping.
- 21% of consumers expect free shipping, 30% of whom are baby boomers.
4. Returns policies
- 43% of shoppers believe returns should be free, including 52% of baby boomers. 🆓
5. Election effect
- 35% of consumers think the 2024 U.S. election will affect their holiday budgets, especially Gen Zers.
- 41% of men factor the election into their spending, compared to 29% of women.
📍 Keep calm and sell on!
Overall, the U.S. holidays are definitely in for an interesting year. Based on the survey, this could be a great year for small businesses.
Pro tip: Always update your social media channels to raise brand awareness.
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BITES OF THE WEEK
- A Sustainable Amazon: Amazon announced sustainable initiatives they plan to embed into core operations.
- New and Improved: Amazon Seller News just got revamped with new handy interactive features.
- Boosted by Black Friday: Read how two brands gained massive wins by leveraging the BFCM sales event.
TACTIC TALKS
How to overcome holiday selling challenges
The holidays bring many shoppers—but also lots of challenges. With rising prices and tight budgets, standing out is harder than ever.
🎅 But don’t worry, it’s not impossible to get noticed this season. Chief Marketer shared some tips on how to tackle the challenges and boost your sales:
- Price sensitivity. Many buyers are spending less this year and looking for the best value.
- Solution: Highlight what makes your products worth it—whether it’s premium quality, unique features, or fast shipping. Bundle products for better value and offer loyalty perks like discounts for repeat purchases.
- No time for marketing. The holiday rush leaves little time for marketing, and many sellers feel stretched too thin to plan effective campaigns.
- Solution: Use email marketing and social media since they’re affordable and effective. Automate emails and social posts to free up hours.
- Last-minute planning. Many small businesses start planning too late, but some shoppers plan early.
- Solution: Start planning early! Outline promotions, prep your marketing calendar, and create content before the rush.
- Having too much on your plate. Trying to do everything leads to burnout and sloppy results.
- Solution: Focus on fewer, high-impact strategies. For example, run targeted email campaigns or host a simple social media contest to engage customers without overloading yourself.
🧠 Working smarter
The holiday season is your chance to shine. However, it takes smart planning to stand out. With the right strategies, you can conquer this holiday season like a pro.
