Record Online Discounts This Holiday Season Expected to Drive Spending
With the holiday season fast approaching, shoppers are eagerly anticipating the season of giving and spending. While Black Friday and Cyber Monday may have been the highlights of the shopping calendar in the past, the advent of online shopping has made every day of the holiday season a potential shopping day.
This year, online retailers are offering record discounts and special promotions to drive spending and attract a large number of customers. According to a survey conducted by Deloitte, shoppers plan to spend $1,387 per household on the holidays, a 7% increase from last year. With online retailers offering discounts of up to 70% and free shipping, consumers are expected to shop online more than ever before. In this article, we will be examining the reasons behind the surge in online shopping and the impact of these discounts on consumer spending.
E-commerce on the Rise
The online shopping industry has been on a steady growth path for the past decade. In 2019, e-commerce sales amounted to $3.5 trillion and the industry is expected to reach $6.5 trillion by 2023. The COVID-19 pandemic has further accelerated the trend, as more and more consumers turn to online shopping for safety and convenience. According to Statista, online sales during the pandemic witnessed a surge of 44.4% compared to 2019.
As consumers continue to embrace e-commerce, retailers are also making significant investments to improve their online presence. Online shopping platforms such as Amazon, Walmart, and Target are upgrading their infrastructure to cater to the increasing demand for online shopping. This has resulted in better websites, faster delivery times, and more attractive deals than ever before.
The Attraction of Online Discounts
Online discounts have long been a staple of online shopping, but this year, retailers are going all out with their promotions to attract customers. Discounts, free shipping, and other special offers are some of the most common ways that retailers attract customers, especially during the holiday season. Online retailers are leveraging various digital tools, such as email marketing and social media advertising, to spread awareness about their deals.
While discounts are certainly attractive to consumers, some retailers have also been experimenting with other promotional strategies. For instance, Walmart introduced a new service called Walmart+, which offers free shipping, fuel discounts, and access to exclusive deals for a monthly fee of $12.95. This subscription model has been successful for other online businesses, such as Amazon Prime, which offers similar services.
The Impact on Consumer Spending
If discounts are attractive enough, they can result in significant increases in consumer spending. Retailers use discounts to appeal to consumers by emphasizing that the offer is limited and that they can save considerable sums of money by making purchases during the promotional period. Consumers may also feel more compelled to shop during this time to fulfill their holiday shopping list.
Consumers are also used to shopping during this period, which leads to the creation of a shopping habit. Retailers can take advantage of this and use discounts and promotions to foster brand loyalty. This is especially true for younger consumers, who tend to be more loyal to brands that offer competitive prices and rewards.
The Future of Online Discounts
The growing popularity of online shopping and the benefits that come with it is likely to result in a continued increase in online discounts. Retailers will need to keep introducing new and innovative ways of attracting customers to their websites, such as more attractive deals, subscription models, and superior customer service. The importance of social media in marketing online discounts cannot be understated and retailers that leverage social media effectively should see a surge in sales.
In conclusion, online discounts are set to drive consumer spending this holiday season. With a growing number of consumers shopping online, retailers are offering more attractive discounts and special promotions to entice customers. While some retailers are experimenting with new deals and subscription models, the basic premise of attracting customers through discounts remains unchanged. The future of online shopping is bright, and consumers can look forward to more innovative ways of saving money while shopping online.