I began my holiday shopping a little early this year and for the very first time I’ve been doing some of my shopping online. According to a the second annual JDA Consumer Survey conducted by JDA Software Group, my move to shop early (and online) may be part of a general consumer shift that is being caused by the convince of year-round e-commerce. People are shopping earlier and turning to online retailers, lessening the emphasis on Black Friday sales.
“Consumers continue to be less influenced by the Black Friday holiday deals and are expecting retailers to provide them with more personalized options throughout the year,” said Jim Prewitt, vice president of retail industry strategy at JDA Software.
The press release stated that “nearly three in four respondents (73 percent) say they prefer to do their holiday shopping outside of the holiday season, during e-commerce sales, such as Amazon Prime Day. Forty-seven percent of respondents plan to skip Black Friday or Cyber Monday altogether this year.”
A shift in holiday shopping
As consumers’ holiday shopping habits continue to shift, retailers should consider the ease – and cost – of home delivery. The survey found that one in four respondents claim they do not shop anywhere that does not offer free shipping.
One of the gifts I purchased online this year was a Goldendoodle-shaped ornament for my friend’s new puppy, Maple. After about 15 minutes I found the perfect ornament, went to purchase and realized the shipping was more than the gift itself! Knowing I couldn’t justify paying that much for shipping, I restarted my search, paying much closer attention to shipping policies, and found a similar product on another site that offered lower-cost shipping.
My decision to look for online retailers offering free (or low-cost) shipping is necessary to keeping to my holiday budget. The survey found this focus on cost to be a common, with 56 percent of consumers reporting that cost is still the most important factor they consider when placing an online home delivery order.
In an attempt to have the best of both worlds, many consumers avoid shipping altogether with buy online, pick-up in store options. The survey found that 46 percent of respondents have used this option in the last 12 months, almost a 33 percent increase from the 2015 JDA Consumer Survey.
Holiday shopping is certainly changing and retailers must pay close attention to stay relevant and meet consumer demand.
“Given the rise in e-commerce, retailers are grappling with the demands of an always-on supply chain,” said Prewitt. “With the continued proliferation of sales and discounting and the challenge of satisfying consumer demand across channels, retailers and manufacturers need an agile supply chain capable of keeping up with changing consumer behavior to better manage inventory and profitability.”
Survey methodology:
JDA collected responses from 1,076 U.S.-based consumers, 18-years and older, via a third-party provider to determine the findings of its 2016 Consumer Survey. Among those surveyed, 53 percent were female and median income was recorded between $50,000 and $74,999.
Access the full survey findings from the JDA 2016 Consumer Survey here.