Consumer Trends for Peak Season 2024

A big part of your e-commerce sales strategy this Peak Season will be knowing what consumers are looking for. Every SME Superhero needs a sidekick, so we’ve done the hard work to round up the top consumer buying behaviors set to shape the holidays this year. Use these insights to sharpen your business’ sales approach and prepare to cash in!

Peak Season 2024: five trends in consumer buying behavior

1. Consumers’ budgets will shrink

Amidst rocky global economies, consumer spending habits are changing. In a report by Vericast, 46% of shoppers said they need to spend less overall on holiday gifts this year¹. And 38% of respondents are actively interested in receiving discounts from brands that will make their shopping more affordable.

What your business can do

Keep your prices competitive. With shrinking budgets, consumers will spend more time researching and comparing product prices. Look at your competitors’ price points – can you afford to match them, or even better, go lower?

Send customers a holiday discount code. In the Vericast survey, respondents noted email as their preferred way to hear about retailers’ promotions, so reach out to subscribers with an exclusive deal to entice them to your website. Just be sure to use “discount” in the subject line to avoid your email ending up in the bin.

Start your holiday campaign early. Many consumers will look to spread out their holiday spending to minimize the impact. Offering deals and discounts in October will help to entice these cautious consumers.

Offer flexible payment plans. In 2023, online holiday spending via “Buy Now Pay Later” services hit US$16.6 billion – a new record². With consumer budgets tightening, they’ll again be looking to instalment plans to help them manage their spending over the next few months. Offering flexible payment services at your checkout could boost your conversion rate. 

2. Free shipping will be a priority

Free shipping has always been a big incentive to online shoppers – but even more so when budgets are tight. As such, many e-commerce businesses are preparing to offer the service in some capacity this year. In a Digital Commerce survey³ of online retailers, 22% said they intend to offer free shipping during heavy holiday promotional periods – like Thanksgiving – whilst 33% will offer the perk to customers who spend a minimum dollar amount.

What your business can do

Offer free Peak Season shipping. It may cost your business money upfront, but consider this: 62% of consumers said they won’t buy from a retailer if it doesn’t offer free shipping⁴. Furthermore, data shows it increases customers’ Average Order Value⁵, making it a worthwhile investment for any e-commerce business.

Set a minimum order value. A good guide for this is to calculate your business’ Average Order Value and then set the free shipping threshold slightly higher. If many of your customers are spending a similar amount anyway, this strategy will nudge them to put an extra item or two in their baskets – which means extra sales for your business.

Absorb shipping expenses into the product price. Calculate the average cost of free shipping for each product and then add that to its sale price. You may need to trial and test your pricing strategy to find the right fit.

3. Social media will lead product discovery

Move over Google…According to a Salsify consumer report⁶, 54% of Gen Z-ers, 45% of Millennials, and 27% of Gen Xers intend to use social media channels to discover gift ideas this holiday season. 

What your business can do

Make it easy for customers to buy. Many of the leading social media platforms have dedicated commerce tools that enable customers to buy from your business in a few clicks – TikTok Shopping and Instagram Shopping, for example. Customers can click on products within your social feed and complete a purchase without leaving the app. The simplicity of this is a big incentive for them to buy.   

Consider using an influencer. 69% of consumers trust influencers more than information coming directly from a brand⁷. Just be sure to carefully choose someone who naturally aligns with your brand’s values if you want content to appear authentic. And if you’re worried about affording a big influencer, don’t – research shows that posts from “micro” influencers have higher engagement rates⁸, making them a better choice for businesses looking to target a specific or niche audience.

Invest time in your social media strategy. Post regularly, respond to customers’ comments and questions quickly, and use analytics to track your campaigns’ performances. Social media marketing does require a bit of work, but can yield a high ROI for brands who get it right.  

4. Mobile shopping will grow

A report from Adobe forecasts that 54% of holiday e-commerce sales will be done via a smartphone⁹ this year, as consumers lean into the convenience of the channel.

What your business can do

Optimize your e-commerce store for mobile. “Slow page loads” was one of the biggest frustrations for consumers shopping on mobile during the 2023 Peak Season¹⁰. And frustrated consumers have no qualms with abandoning their carts. To avoid this, now is the time for your business to conduct a thorough test of its mobile performance and fix any bugs or issues.  

Keep it simple. Typing in lots of personal details can be frustrating on a small screen so make it easier for customers by offering Guest Checkout, and allow them to pay via digital wallet.

Consider building a dedicated mobile app for your store. It will require some initial investment, but as conversion rates through mobile apps are 130% higher compared to mobile-first websites¹¹, it will be worth it!

5. Sustainability in logistics will trend (again)  

Sustainability is no longer a niche topic for shoppers. 79% of consumers are considering sustainability in their holiday shopping this year, whilst 76% are even willing to pay more for eco-friendly products¹².

What your business can do

Shout about your eco-policies. Be clear about your products’ sustainability credentials but beware of “greenwashing” – if you’re saying a product is vegan, for example, be sure you have the certification to authenticate your claims.

Use sustainable packaging. Prioritize recyclable, biodegradable and plant-based materials. And use correct sized boxes – excess space is not only a waste of packaging materials but will cost your business more in shipping fees.

Offer low-emissions shipping options. DHL’s GoGreen Plus is a dedicated solution to help businesses reduce the carbon emissions associated with their shipments through the use of Sustainable Aviation Fuel. This biofuel is produced from renewable sources such as vegetable oils and agricultural crops. It’s specifically designed to be used as a substitute for traditional jet fuel and can reduce greenhouse gas emissions by up to 80% compared to fossil fuels. GoGreen Plus can be selected for individual shipments, making it a viable option for SMEs and e-commerce businesses with smaller cargo loads.