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5 key holiday marketing trends and predictions for eTailers

Richard ClaytonRichard Clayton
November 27, 2014


For etailers, it’s the height of the selling season, and November/ December retail sales are expected to climb 5% over last year, the largest increase in holiday season sales in several years. And marketplaces like Amazon, ebay and even niche sites are opening the door for sellers from around the world to take a piece of the pie.

Scott Galit, CEO of Payoneer says, “E-Commerce is growing faster than physical retail, but marketplaces are growing faster than e-Commerce.”  There are more than two million third-party sellers on the Amazon platform and while Amazon had an approximate 20% growth of year-over-year net sales in Q4 2013, the sales growth of third-party sellers over this same time period averaged between 40% and 50%. At Payoneer, we’ve seen for the past three years that the volume of sales increases 400% from June to December, and this year is even expected to surpass this growth rate.  Moreover, the impact of online sellers from countries such as China, South Korea, Japan, Pakistan, Australia on Amazon sales continues to rise, with payouts volume to Asia tripling over the past 12 months.

 

With the holiday season being the most important time of year for etailers, let’s take a look at some growing trends:

 

1. Singles Day is a Game Changer

Singles’ Day has become the largest online shopping day of the year, surpassing Black Friday and Cyber Monday sales figures by leaps and bounds. This year, online retail giant, Alibaba, reported $9.3 billion in sales, up from $5.75 billion from 2013…that’s 60% year over year growth! To help put Singles’ Day’s economic impact into perspective, “Cyber Week,” in the U.S., which combines Thanksgiving, Black Friday and Cyber Monday sales, generated $2.9 billion in 2013, according to ComScore.  If you missed Singles Day, be sure to put it on your 2015 to-do list!

 

2. China’s Consumer Potential

The record sales of ‘Singles Day’ are indicative of changes in consumer habits…specifically Chinese consumers. The Internet, for instance, attracts people within China’s second- and third-tier cities that aren’t well serviced by traditional retailers. Online shopping has drastically lowered costs and will continue to grow at a rapid pace, even boosting China’s future economy. As the world’s second-largest economy and world’s largest manufacturer, we are starting to see more Chinese beginning to consume the items they produce.

 

3.  No More Big Spenders

According to CFI Group, shoppers are planning on spending less money this year and purchasing for fewer people. We can see from Alibaba that the average order on Singles Day was only $33.50. Emarketer states that “forty percent of 25- to 34-year-olds will be motivated most by sales and coupons, compared to just 29% of the population on the whole. As shoppers age into the bracket of those with young families, discounts and deals dictate their holiday shopping habits more. Forty percent of 25- to 34-year-olds will be motivated most by sales and coupons, compared to just 29% of the population on the whole.” As shoppers continue to work smarter with smaller budgets, they turn to discounts and promotions, which means etailers need to run targeted campaigns to attract shoppers looking to save.

 

4. Mobile Commerce = Mobile Marketplaces

With discounts and deals top of mind, research-savvy shoppers will use mobile devices to find the best promotions for the season. And what better way to find great deals than mobile first marketplaces like Fancy, Wanelo, Polyvore, or Fresh, woo savvy mobile users. Designed as a mobile-first application, Wish uses matching technology to deliver a visually engaging, entertaining, and individualized shopping experience, which drives a very high engagement rate among its users: repeat customers make up approximately half of all purchases.  Business Insider states, “purchases made using a smartphone or tablet rose 48% year-over-year (YoY) in the second quarter of 2014, to about $8 billion. That’s three times faster than desktop-based e-commerce, and the fastest increase in mobile commerce spending since the first quarter of 2012.”

 

5. Improvement of shipping networks

For those unwilling to buy online, shipping costs seem to be the hang up. Nearly half of consumers who said they’re spending less online this year cite the cost of shipping caused they to abandon card. Large marketplaces like Amazon and their Fulfillment by Amazon (FBA) offer advanced fulfillment networks with free shipping and world class customer service . eBay recently announced that it is partnering with major retailers to offer same-day delivery for the holiday season by sourcing products from local brick & mortar retailers.

 

Online shopping — and more broadly, online engagement — is becoming increasingly important to the strategy of online sellers. With ecommerce becoming a truly global market, we’ll see a shift in buying patterns, how people choose to engage, the desire for more feasibility, and of course, mobile friendly solutions. What predictions do you have for the holiday season and beyond?

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