7 Holiday Shopping Predictions for 2021: What Retailers Need to Know

Introduction

As we approach the 2021 holiday season, many retail businesses are wondering what's in store for this year. The 2020 holiday season was truly unprecedented, with U.S. consumers breaking holiday shopping records during Cyber 5 (the span between Thanksgiving Day and Cyber Monday), showing a 20.6% increase in online sales. This surge was largely attributed to the Covid-19 induced lockdowns that prevented people from shopping in physical stores.

To help retailers prepare for the upcoming holiday season, we've gathered insights from eCommerce experts on the top trends that will impact this year's holiday shopping. In this article, we'll explore seven holiday shopping predictions for 2021 and discuss how FreightAmigo's Digital Logistics Platform can support retailers in navigating these trends.

1. Increased Online and Hybrid Shopping

As we approach the 2021 holiday season, it's clear that online shopping is here to stay and will continue to grow, even as pandemic lockdowns decrease and physical stores reopen. More shoppers are continuing to purchase online, and even traditional stores are entering the digital playing field. The future of retail business is a combination of both online and offline experiences.

Shoppers now encounter various digital touchpoints as they decide on their purchases, even before stepping foot into a physical store. Online shopping provides key advantages such as detailed product information, customer reviews and recommendations, and price comparisons. The key to improved customer interaction lies in combining the assets of both offline and online shopping.

To prepare for this trend, retailers should focus on delivering an exceptional shopping experience, whether customers choose to shop online or in-store. FreightAmigo's Digital Logistics Platform can help retailers optimize their supply chain and ensure timely delivery of products, regardless of the sales channel.

2. Shopping Starts Early

Another holiday shopping prediction from experts is that consumers will start their shopping earlier than usual. Last year's supply chain disruptions have left a strong impact on consumer perceptions. In 2020, 70% of shoppers intended to shop earlier to avoid crowds and items running out of stock. We expect a similar trend for 2021.

To meet this early demand, retailers should consider launching holiday promotions earlier than usual. FreightAmigo's Digital Logistics Solution can help retailers plan and execute their logistics strategies well in advance, ensuring that products are in place for early shoppers.

3. Early Preparation of Inventory

One of the most critical factors retailers need to consider is supply chain constraints. Typically, items should be ordered 3-9 months in advance to ensure timely fulfillment for holiday shopping. As consumer demand increases and production capacity is being tapped out, global supply chains are expected to encounter major shortages.

Retailers should consider the following critical factors:

• Will they be able to prepare enough inventory?
• Will the supply come on time?
• Will shipping constraints continue?
• Will stores reopening lighten the load on carriers?

FreightAmigo's Digital Platform can help retailers address these concerns by providing real-time visibility into their supply chain, enabling them to make informed decisions about inventory management and shipping options.

4. Demand for Convenient Options

"Convenience" will be the biggest holiday shopping trend for 2021. To position themselves effectively this holiday season, retail businesses should develop strategies based on the following customer demands:

• Can I purchase online, when and how I want?
• Can I pick it up in-store when I want?
• Can I reserve in-store and have the product waiting for me to try?
• Can I get immediate delivery?
• Can I return my purchase through a simple collection service, or return it to the store and have it replaced?

One option retailers can consider implementing is BOPIS (Buy Online, Pickup In-Store). This allows consumers to make purchases online and pick up their orders in-store, either from a designated customer service area, curbside pickup, or BOPIS retail lockers.

FreightAmigo's Digital Logistics Platform can support retailers in implementing these convenient options by providing efficient last-mile delivery solutions and streamlining the order fulfillment process.

5. Mobile Shopping

Another trend to watch for in 2021 is the rise of mobile shopping. Buying items from mobile devices is very convenient for shoppers on the go, especially for last-minute purchases. However, this trend also comes with the challenge of increased cart abandonment rates.

To address this issue, online retailers should focus on providing a seamless end-to-end mobile shopping experience. They should also keep in mind that shoppers are more inclined to make a mobile purchase if a discount is available. One effective strategy is to offer coupon codes with subscriptions.

FreightAmigo's Digital Logistics Solution can help retailers optimize their mobile shopping experience by ensuring fast and reliable delivery options, which can contribute to higher conversion rates on mobile devices.

6. Social Media Will Be More Significant

eCommerce experts predict that this year, more people will do their holiday shopping through social media platforms. While this trend isn't new, the lasting impact of the pandemic has led shoppers to use more digital channels for their purchases. Brand discovery now takes place more often on mobile devices, with social media playing a crucial role.

Merchants should ensure they have a strong social media presence and a well-planned strategy before the coming holiday season. This includes leveraging tools like Facebook for BigCommerce, which provides retailers with the resources they need to thrive across Facebook and Instagram.

FreightAmigo's Digital Platform can support retailers in their social media strategies by providing reliable shipping and logistics solutions that can be seamlessly integrated into social commerce experiences.

7. Reviews Will Play a Big Factor

Customer reviews will be increasingly important in the 2021 holiday season. Industry experts agree that the availability of customer feedback and social proof has been critical to a merchant's success. Brands and retailers are recommended to provide anything that helps educate shoppers to encourage and increase conversion rates.

Consumers want to be completely informed before making a purchase and are willing to do their due diligence. Retailers need to offer this information or risk losing customers. Shoppers expect to see a mix of both positive and negative comments, as trust between a business and its clients is one of the primary factors when it comes to customer reviews and their impact on revenue.

FreightAmigo's Digital Logistics Platform can contribute to positive customer reviews by ensuring timely and accurate deliveries, which are crucial aspects of the overall shopping experience.

Conclusion

As we look ahead to the 2021 holiday season, it's clear that retailers need to be prepared for a range of scenarios. Whether customers are excited to shop in physical stores again or continue to enjoy the convenience of online shopping, these predictions can help merchants prepare their businesses to increase sales during this crucial period.

By leveraging FreightAmigo's Digital Logistics Platform, retailers can address many of the challenges and opportunities presented by these trends. Our comprehensive solutions can help optimize supply chain management, improve delivery times, and enhance the overall customer experience across various shopping channels.

As you prepare for the upcoming holiday season, consider how FreightAmigo's Digital Logistics Solution can support your business in meeting customer expectations and staying ahead of the competition. With our advanced technology and expertise, we can help you navigate the complexities of holiday logistics and ensure a successful season for your retail business.