7 Key Holiday Shopping Predictions for 2021: What eCommerce Merchants Need to Know

Introduction

As we approach the 2021 holiday season, eCommerce merchants are eager to understand what trends will shape consumer behavior and impact their sales. The unprecedented events of 2020, particularly the Covid-19 pandemic, dramatically altered the retail landscape and accelerated the growth of online shopping. With U.S. consumers breaking holiday shopping records during last year's Cyber 5 (the period between Thanksgiving Day and Cyber Monday) and online sales increasing by 20.6%, it's clear that the eCommerce boom is here to stay.

At FreightAmigo, we understand the importance of staying ahead of industry trends to provide our clients with the best digital logistics solutions. In this article, we'll explore seven key holiday shopping predictions for 2021 and discuss how eCommerce merchants can adapt their strategies to meet changing consumer demands and maximize their success this holiday season.

1. Increased Online and Hybrid Shopping

One of the most significant trends we anticipate for the 2021 holiday season is the continued growth of online shopping, even as physical stores begin to reopen. The digital shift that occurred during the pandemic has created lasting changes in consumer behavior, with more shoppers embracing the convenience and safety of online purchases.

However, it's important to note that the future of retail is not exclusively online. Instead, we're seeing the emergence of a hybrid model that combines the best of both online and offline shopping experiences. Consumers are now accustomed to encountering various digital touchpoints throughout their purchase journey, even before they set foot in a physical store.

For eCommerce merchants, this trend presents both opportunities and challenges. To succeed in this evolving landscape, businesses should focus on:

• Developing a seamless omnichannel presence that integrates online and offline experiences
• Providing detailed product information, customer reviews, and recommendations on their digital platforms
• Offering competitive pricing and easy price comparison tools
• Ensuring exceptional customer service across all channels

As a digital logistics platform, FreightAmigo is well-positioned to support eCommerce merchants in navigating this hybrid shopping environment. Our comprehensive solutions can help businesses streamline their supply chain operations, enabling them to meet customer demands across both online and offline channels efficiently.

2. Early Start to Holiday Shopping

Another key prediction for the 2021 holiday season is that consumers will begin their shopping earlier than usual. This trend is largely driven by the supply chain disruptions experienced in 2020, which have left a lasting impact on consumer perceptions and behaviors.

Research shows that in 2020, 70% of shoppers intended to start their holiday shopping earlier to avoid crowds and potential stock shortages. We expect this trend to continue in 2021, with many consumers looking to secure their desired items well in advance of the traditional holiday rush.

For eCommerce merchants, this shift in consumer behavior presents an opportunity to extend the holiday shopping season and potentially increase overall sales. To capitalize on this trend, businesses should consider:

• Launching holiday promotions earlier than usual
• Implementing tiered promotional strategies to maintain consumer interest throughout an extended shopping period
• Communicating clearly about potential stock limitations or shipping delays to encourage early purchases
• Offering exclusive early-bird deals or perks for loyal customers

At FreightAmigo, we recognize the importance of early preparation in meeting these changing consumer expectations. Our digital logistics platform can help eCommerce merchants optimize their inventory management and shipping processes to ensure they're ready to meet early demand and maintain efficient operations throughout the extended holiday season.

3. Early Preparation of Inventory

In light of the ongoing global supply chain constraints, early inventory preparation will be crucial for eCommerce merchants in 2021. Typically, holiday inventory should be ordered 3-9 months in advance to ensure timely fulfillment. However, with increased consumer demand and production capacity limitations, businesses may need to plan even further ahead this year.

When preparing for the 2021 holiday season, eCommerce merchants should consider several critical factors:

• Inventory levels: Will they be able to secure enough stock to meet anticipated demand?
• Supply chain timing: Will suppliers be able to deliver products on schedule?
• Shipping constraints: Will there be continued challenges in logistics and delivery?
• Store reopenings: How will the return of brick-and-mortar shopping impact online demand and carrier loads?

To address these challenges, businesses should focus on:

• Conducting thorough demand forecasting and inventory planning
• Diversifying suppliers to mitigate potential shortages or delays
• Implementing robust inventory management systems
• Considering alternative fulfillment methods, such as dropshipping or third-party logistics providers

FreightAmigo's digital logistics platform can play a crucial role in helping eCommerce merchants navigate these inventory challenges. Our solutions offer real-time visibility into supply chain operations, enabling businesses to make informed decisions about inventory management and shipping strategies.

4. Demand for Convenient Options

Convenience will be a paramount concern for holiday shoppers in 2021. As consumers have grown accustomed to the flexibility and ease of online shopping, they now expect a range of convenient options throughout their purchase journey. To meet these expectations, eCommerce merchants should consider developing strategies that address the following customer demands:

• Flexible online purchasing options
• In-store pickup capabilities
• "Try before you buy" services for in-store reservations
• Immediate delivery options
• Simple return processes, including collection services and in-store returns

One increasingly popular option that addresses many of these demands is Buy Online, Pickup In-Store (BOPIS). This service allows customers to make purchases online and collect their orders from a physical location, offering the convenience of online shopping with the immediacy of in-store pickup.

BOPIS can be implemented in several ways:

• Designated customer service or BOPIS pickup areas in stores
• Curbside pickup options
• BOPIS retail lockers
• Third-party fulfillment services to handle logistics

As a comprehensive digital logistics platform, FreightAmigo can support eCommerce merchants in implementing these convenient options. Our solutions can help businesses optimize their order fulfillment processes, manage inventory across multiple locations, and provide real-time tracking information to customers, enhancing the overall shopping experience.

5. Rise of Mobile Shopping

Mobile commerce is expected to play an increasingly significant role in the 2021 holiday shopping season. The convenience of shopping on mobile devices makes them particularly attractive for on-the-go consumers and last-minute purchases. However, this trend also presents challenges, such as higher cart abandonment rates on mobile platforms.

To capitalize on the mobile shopping trend and mitigate potential issues, eCommerce merchants should focus on:

• Optimizing their websites and online stores for mobile devices
• Providing a seamless, user-friendly mobile shopping experience
• Implementing mobile-specific promotions and discounts
• Offering streamlined checkout processes for mobile users
• Leveraging push notifications and SMS marketing to engage mobile shoppers

One effective strategy for encouraging mobile purchases is to offer exclusive discounts or coupon codes to mobile users. This approach can help offset the higher cart abandonment rates typically associated with mobile shopping.

At FreightAmigo, we understand the importance of mobile optimization in today's digital landscape. Our platform is designed to be fully responsive, allowing eCommerce merchants to manage their logistics operations seamlessly across all devices, including mobile phones and tablets.

6. Increased Significance of Social Media

Social media's role in holiday shopping is expected to grow even further in 2021. With the ongoing impact of the pandemic, more consumers are turning to digital channels for product discovery and purchases. Social media platforms have become increasingly important in this process, particularly for mobile users.

To leverage the power of social media during the holiday season, eCommerce merchants should:

• Develop a strong social media presence across relevant platforms
• Create engaging, shareable content that showcases products and promotions
• Implement social commerce features, such as shoppable posts and stories
• Utilize influencer partnerships to expand reach and credibility
• Engage with customers through social media messaging and comments

Tools like Facebook for BigCommerce can be particularly useful for merchants looking to enhance their social media strategy. These integrations allow businesses to seamlessly connect their eCommerce operations with popular social platforms, creating a more cohesive and effective marketing approach.

As a digital logistics platform, FreightAmigo recognizes the importance of social media in modern eCommerce. Our solutions can help businesses ensure that their backend operations, including order fulfillment and shipping, can keep pace with the increased demand generated through social media channels.

7. Growing Importance of Customer Reviews

Customer reviews will play an increasingly crucial role in the 2021 holiday shopping season. As consumers become more discerning and seek to make informed purchase decisions, they rely heavily on the experiences and opinions of other shoppers. This trend underscores the importance of social proof in driving conversions and building trust with potential customers.

To leverage the power of customer reviews, eCommerce merchants should focus on:

• Actively encouraging customers to leave reviews
• Displaying reviews prominently on product pages and throughout the website
• Responding promptly and professionally to both positive and negative reviews
• Incorporating user-generated content, such as customer photos and videos
• Using review data to improve products and services

It's important to note that consumers expect to see a mix of both positive and negative reviews. A perfect five-star rating across all products can actually raise suspicions about authenticity. Instead, businesses should focus on providing comprehensive, honest information that helps educate shoppers and build trust.

At FreightAmigo, we understand the impact of customer satisfaction on business success. Our digital logistics platform is designed to help eCommerce merchants deliver exceptional service throughout the entire supply chain process, from order placement to final delivery. By ensuring smooth, efficient logistics operations, businesses can improve their chances of receiving positive customer reviews and building a strong reputation in the market.

Conclusion

As we approach the 2021 holiday season, it's clear that eCommerce will continue to play a central role in shaping consumer behavior and retail trends. The seven predictions outlined in this article highlight the need for businesses to adapt their strategies to meet changing customer expectations and navigate potential challenges in the supply chain.

By focusing on providing seamless omnichannel experiences, preparing early for increased demand, offering convenient shopping options, optimizing for mobile commerce, leveraging social media, and prioritizing customer reviews, eCommerce merchants can position themselves for success during this crucial sales period.

At FreightAmigo, we're committed to supporting eCommerce businesses in their efforts to thrive in this dynamic landscape. Our comprehensive digital logistics platform offers the tools and solutions needed to streamline operations, enhance efficiency, and deliver exceptional customer experiences throughout the holiday season and beyond.

As you prepare for the upcoming holiday rush, consider how FreightAmigo's innovative logistics solutions can help you meet the challenges and opportunities of the 2021 holiday shopping season. By partnering with us, you can ensure that your business is well-equipped to handle increased demand, navigate supply chain complexities, and provide the seamless, convenient shopping experience that today's consumers expect.