Strong Online Sales for 2021 Holiday Shopping

The results of a new studioID survey conducted in the first week of December provides an early indication of strong online sales as retailers prepare for the final days of the critical holiday shopping season. Of the 385 retail e-commerce executives surveyed, more than half (52 percent) said online revenues up to Cyber Monday were stronger this year than in 2020. Further, 58 percent of the respondents indicated that their holiday gifting season started between early October, or even before, and up to Thanksgiving, prior to the traditional peak selling periods of Black Friday and Cyber Monday.

Strong online sales - person shopping.

Top Retailer Concerns

The studioID research, sponsored by GiftNow, also explored retailers’ concerns about their challenges in the 2021 holiday shopping season revealing their top three challenges:

  • Supply chain concerns – 35%
  • Slower/unreliable delivery – 25%
  • High shipping costs – 22%

Addressing Business Challenges

To help address these business challenges, retailers employed a variety of promotional strategies during the shopping days through Cyber Monday that helped them generate strong online sales and exceed or match online revenue in 2020. The top three promotional strategies used this year by those surveyed include:

  • Discounts on products/services – 44%
  • Free shipping – 42%
  • Promos/discounts encouraging early shopping – 41%

Pari Raccah, General Manager of GiftNow commented that “We’re encouraged by the continued strong growth in online holiday shopping and our ability to facilitate gifting revenues to address many of the challenges retailers shared in the research. GiftNow helps shoppers more easily send gifts to family and friends right up to the holiday itself. Our ability to digitally deliver gifts instantly or at a pre-scheduled day helps alleviate concerns about slow and unreliable delivery and high shipping costs while also adding more shopping days to the holiday season by extending cut-off dates, a win for last-minute shoppers and retailers.”

Strong Online Sales But What About Gift Cards?

Gift cards, both digital and physical, may become even more popular this year, particularly for last minute gifting, with retailer and consumer concerns related to supply chains and shipping. Despite this, only 36 percent of the retailers surveyed said they are very or extremely satisfied with their current gift card solution, showing there’s plenty of room for improvement for retailers to drive even more gift card revenue in 2022 and beyond while also delivering an exceptional gift card experience to their customers.

To learn more about the key findings from this studioID Pulse Survey, click here.

Kevin Payne is the Vice President of Corporate Marketing for GiftNow

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