Key Holiday Shopping Trends in 2023 

Trend #1: Consumers will expect discounts 

Last year consumers had ravenous appetites for deals driven by rising inflation. Even with the recent decline in inflation, US businesses expect a cautious spending pattern this holiday season.  According to  CNBC’s Supply Chain Survey, 

71% of businesses believe consumers will cut back on spending this holiday season while 67% believe consumers will expect heavy discounts. 

Amazon’s Prime Day this July clocked in a 6.1% year-on-year growth and the company recorded July 11 as its biggest Prime Day in history. This is a good barometer for brands to gauge what to expect later this year: inflation may not slow down spending this holiday season but rather drive consumers to search for the best deals and discounts.  

Trend #2: The key to boosting sales lies in personalization 

In anticipation of consumers actively seeking discounts during this holiday season, e-commerce brands must adapt by not only suggesting products that align with their preferences but also by offering the most attractive value propositions. Forrester research highlights that nearly two-thirds of online adults in the United States highly appreciate it when companies recommend products that are currently on sale or come with special promotions. Enhancing these recommendations by incorporating first-party data, such as loyalty program insights or in-app purchase history, across various communication channels can further enhance the relevance of these offers for consumers. 

Trend #3: Holiday shopping will get more ‘social’ 

Recent research conducted by Salesforce during the period from March to May 2023 revealed that over 50% of consumers made purchases based on items they encountered through their social media feeds. 

Driving the surge in social commerce are Millennials and Generation Z, who are taking the lead in this transformative trend. Insider Intelligence anticipates a substantial growth of nearly 30% in social commerce for the current year, largely attributed to the rising prominence of platforms like TikTok. Additionally, social media is set to play a pivotal role in shaping purchasing decisions. Consequently, brands preparing for the holiday season must prioritize the development of a robust social media strategy to tap into this significant consumer trend. 

Trend #4: Customers may start shopping early ‘Again’ 

In 2022, a significant shift occurred more than half  of US consumers kicked off their holiday shopping well before Thanksgiving. This trend was propelled by enticing early-access sales and exclusive deals for loyalty program members, which began as early as mid-October. Businesses responded to the demand for discounts, extending their offerings beyond Christmas to clear out excess inventory. 

Anticipating a similar pattern in 2023, it’s evident that the extended holiday shopping season, stretching from October possibly into the early weeks of January, will become the norm. Consumers’ persistent hunger for value-driven deals remains unabated, underlining the likelihood of a repeated trend this year. 

Trend #5: Omnichannel experiences will continue to remain in demand 

In the realm of holiday shopping for 2023, the demand for omnichannel experiences is set to persist and even grow stronger. Shoppers are no longer confined to the traditional brick-and-mortar or online dichotomy. Instead, they seek seamless, integrated shopping journeys that blend the physical and digital realms. 

Omnichannel experiences have proven their worth in recent years, offering consumers the convenience of researching online, purchasing in-store, and vice versa. The success of mid-October early-access sales and extended post-Christmas discounts in 2022 underscored the importance of offering a cohesive shopping experience across channels. 

As we move into 2023, businesses must be prepared to cater to this preference for omnichannel shopping. This means aligning their strategies to seamlessly integrate online and offline touchpoints, providing consistent product information, pricing, and promotions, regardless of where or how customers choose to engage. 

Furthermore, personalized recommendations and targeted promotions will play a crucial role in enhancing the omnichannel experience, ensuring that shoppers receive relevant offers whether they’re browsing on social media, visiting a physical store, or perusing an e-commerce website. 

The trend of seeking omnichannel experiences is here to stay for the 2023 holiday shopping season and beyond. Businesses who embrace this shift and prioritize seamless integration across all touchpoints are poised to thrive in the evolving retail landscape. 

Trend #6: Provide hassle-free returns to build brand loyalty 

The holidays are a prime opportunity for brands to reach new customers and build loyalty from existing ones. But the key to retaining these customers is by creating a memorable post-purchase experience.  

For many customers, this means offering a simple and easy return experience.  

Unsurprisingly, more sales during the holiday season often means more returns. Last year, at least 10% — and even as high as 16% — of ecommerce orders in the U.S. were returned each week from November through mid-January.  

While a high number of returns may not sound ideal, this is a huge opportunity to prove to your customers that you care about them — not just their money. A study by FedEx even revealed that 98% of shoppers would be willing to order from a brand again if it offered fast and convenient returns, and 56% are willing to pay for hassle-free returns. 

Rather than focusing all your energy on the purchase experience, make sure you’re offering a generous return window and an intuitive returns experience. 

Trend #7: Provide seamless shipping experience 

As we approach the Holiday Season of 2023, businesses in Canada are gearing up for what promises to be yet another record-breaking year in e-commerce. The trends and predictions for this festive season indicate that the online shopping boom will continue to flourish, with consumers relying more than ever on the convenience of digital storefronts. To provide a seamless shipping experience during this bustling time, businesses need to take note of several critical factors. 

One significant trend is the increasing preference for regional carriers. While national carriers play a pivotal role, many businesses are recognizing the advantages of collaborating with local and regional shipping partners. These carriers often possess a deep understanding of the local market, enabling them to offer personalized and more reliable services. In fact, statistics reveal that in 2022, a remarkable 43% of Canadian businesses opted for regional carriers for their holiday season shipping needs, up from 30% the previous year. 

However, despite the best-laid plans, shipping delays can still pose challenges during the holiday rush. These delays may stem from various factors, including adverse weather conditions, surges in order volumes, or disruptions in the supply chain. To tackle these challenges head-on, businesses should set realistic shipping expectations, offer expedited shipping options for last-minute shoppers, and leverage tracking and notification systems to keep customers informed about their orders’ status. 

The Holiday Season of 2023 in Canada is poised to be a dynamic and transformative period for e-commerce. To stay competitive and meet customer expectations, businesses must adapt to the changing landscape by choosing regional carriers and effectively addressing potential shipping delays. By doing so, they can ensure a seamless shopping experience that delights customers and builds brand loyalty during this festive season.