As the holidays approach, the eCommerce industry is checking its list twice as it gears up for the busiest time of the year – peak season. Projections for the 2024 holiday season estimate total retail sales will reach $1.3 trillion, marking a 4.8% increase compared to last year.
To succeed in this competitive and ever-changing landscape, businesses must understand the latest consumer preferences and shopping habits. Using recent data from UPS Capital,1 let's explore some key trends shaping holiday shipping this year.
‘Tis the Season for Free Shipping
While free shipping is important year-round, it becomes critical to shoppers during the holiday season. An overwhelming 86% of consumers surveyed say free shipping is the most important factor influencing their holiday purchases. This preference is so strong that 22% say they would abandon their shopping cart if free shipping wasn’t offered.
With peak shopping events like Black Friday and Cyber Monday around the corner, retailers offering free or discounted shipping have a much better chance of capturing consumer attention. To outshine competitors during the holiday chaos, businesses should highlight their shipping promotions prominently in their marketing efforts.
The Most Wonderful Time (To Know Your Audience)
Free services are universally popular, but there are some notable differences in delivery speed preferences between men and women. A quarter (25%) of men are willing to pay extra for expedited shipping to receive their items quicker during the holidays, as opposed to only 8% of women. Additionally, 35% of men are more likely to shop with retailers that offer guaranteed delivery dates during this period, compared to 25% of women.
These distinctions suggest that retailers could benefit from offering gender-targeted promotions to maximize holiday sales. For example, pushing rush, guaranteed shipping offerings could be effective for male shoppers, while free shipping promotions might resonate more with female customers.
Believe in the Magic of Returns
Younger generations now represent a significant portion of the shopping population, and their preferences are driving the future of retail. Over half (54%) of millennials and more than a third (39%) of Gen Z say that offering free returns is an influential factor when making online purchases.
This focus on a hassle-free return process highlights the need for a seamless, end-to-end shopping experience. To meet customer expectations, retailers should ensure their return policies are transparent, with no hidden terms or confusing conditions. Offering flexible return options can further enhance convenience for shoppers. For example, the ability to print a label at home, use a courier service, or drop off items at third-party locations (e.g., Amazon’s partnership with Kohl’s).
Give the Gift of Peace of Mind
Free shipping remains a powerful tool for attracting and retaining customers, especially during the holiday season. However, it's just one piece of the puzzle. Retailers need to consider a range of factors, including ease of returns, expedited shipping options, and targeted promotions, to create a shopping experience that truly resonates with today’s consumers.
By understanding and adapting to these trends, eCommerce businesses can position themselves for success during peak season and beyond. And for those looking to protect their shipments during this crucial period, partnering with a reliable shipping insurance provider can offer peace of mind and help ensure a smooth holiday shopping season for both retailers and customers alike.
1All statistics derived from an online survey completed by 1,000 18+ U.S. adults. It was commissioned by UPS Capital and fielded by Dynata, a global market research firm, in October 2024.
