Pitney Bowes’ BOXpoll survey* found that despite conflicting economic indicators, 80 percent of consumers plan to buy online more or the same this coming holiday season as last year.

“While U.S. consumers grapple with economic challenges including the lingering impacts of inflation, their discretionary spending—particularly online—appears to defy gravity headed into the holidays,” said Vijay Ramachandran, VP of GTM (Go-to-Market) Enablement and Experience at Pitney Bowes. “Online sales so far this year are up more than 7 percent versus 2022, even though online prices have been on a deflationary trend for more than a year.”

According to the Pitney Bowes’ BOXpoll survey conducted in September:

  • 32 percent of consumers plan to shop online more than last year, 48 percent plan to spend the same amount and 20 percent plan to spend less, consistent with its 2022 findings.
  • Among the 20 percent of consumers planning to spend less online, slightly more than one-half responded that they would cut back on overall (i.e., non-holiday) spending, a reduction from the 71 percent who expected to cut back spending in 2022.
  • Gen Z and Millennials are even less likely to curtail online spending, with 22 percent and 18 percent year-over-year declines, respectively, among those age groups who said they planned to spend less online versus last year.

“These survey results reflect what we’re seeing in the market and with our own clients: Consumers are having a hard time letting go of COVID-era shopping habits—and rather than curtail overall spending, they’re ‘trading down’ to lower-priced brands and lower-value product categories as they seek to make their budgets go farther in reaction to perceived inflation,” said Ramachandran. 

“Retailer earnings from Q2 saw mid-priced and discount brands reporting stellar quarterly results at the expense of more premium brands and department stores. We know from consulting with our clients that mid-price apparel, as well as accessories and beauty brands, are optimistic about the holiday season, while sporting goods and home décor brands are approaching peak more cautiously,” added Ramachandran.

To further examine how consumer shopping behaviors have evolved recently, Pitney Bowes asked BOXpoll survey respondents if they noticed it had become harder to qualify for free shipping, and 39 percent agreed. In addition, 42 percent of consumers expect it to become harder to be eligible for free shipping this holiday season compared to 2022. The survey results also showed that respondents were most likely to either add more items to their cart to qualify for free shipping (44 percent) or try to find the same product with a different online brand that offers free shipping (37 percent).

Pitney Bowes’ data also found that these trends in consumer behavior are coming amidst retailer challenges, including difficulties with comparing carrier cost structures, differentiating customer tracking experiences, managing returns fraud, and finding cross-border shipping partners who can handle both compliance and logistics.

*The BOXpoll consumer survey by Pitney Bowes is a weekly consumer survey on current events, culture and e-commerce logistics. Morning Consult conducts weekly polls on behalf of Pitney Bowes among a national sample of more than 2,000 online shoppers.

Photo courtesy Banana Republic