Holiday Ecommerce Playbook: Strategies and Insights for 2024

The holiday shopping season is usually make or break for businesses. So what will the holidays look like this year? 

The economy is doing great (or is it?). Unemployment is at an all time low (maybe?). And consumers are spending more (are they?) than they have in years past thanks to lowering inflation. 

If the last four years have taught us anything, it’s to expect the unexpected, so it’s ok to not be 100% sure what's coming this holiday season. 

That’s what we’re here for. 

We’ve talked to some of our best and brightest partners in the ecommerce space to help you sift through the static and see what you can expect from the coming holiday season. 

Spending will remain flat

Have you noticed there’s quite a bit going on this year? Between the election, economic unease, and the shortest holiday buying season since 2019, consumers have their hands full. That’s why our experts say you shouldn’t expect the kind of spending growth your business saw in 2021 and 2022. 

“The industry got a little spoiled with the huge jumps in spending in years past,” said Jay Brimberry, COO of EYStudios, “so businesses will need to adjust their expectations for the holiday shopping season this year.” 

Lohia Vaibhav, Head of Marketing at Apply Digital, agrees, and sees a holiday season where dollar-conscious consumers reward brands that add value or discounts as they shop more. “Customers will look toward deals as a way to maximize their value,” he said, “and will use apps and websites that give them discounts as they shop.”

What can you do to prepare? 

As consumers pinch pennies, brands can look at unique ways to entice them to spend more. Loyalty programs are a great way to close the deal. 

“Loyalty programs and rewards for your top customers are great opportunities for growth,” explained Edward Gaug, Director of Marketing and Partnerships at Guidance. “Put the majority of your effort into rewarding your customers to help build stronger long-term relationships and get them spending.” 

Another way to increase spending is by creating enticing promotions and discounts. In a recent BigCommerce survey, we found that 54% of retailers believe that customers will have a higher sensitivity to promotions and discounts. 

Spencer Flaherty, Internal Marketing Manager at Groove Commerce, suggests bundling to entice shoppers to spend some extra cash. “Value-add bundles are likely to make a large impact in the 2024 holiday shopping season. If the base-model of your product typically retails for $129.95 with up to $74.99 in upsells, like accessories, offer that complete upsell bundle for $24.99 (if your margins can handle it),” he explained. “Sacrificing the profit from an upsell bundle allows you to maximize the volume of your primary product while liquidating excess inventory.”

Shoppers will prefer experiences over goods 

As spending is slated to remain mostly flat throughout the season, shoppers are going to prioritize long-lasting memories over fleeting gifts. That’s why our experts see experiences as a top-seller this year. 

Flaherty says that “even before spending started going stagnate, the desire for memorable experiences over physical gifts has been growing. Consumers will look for ways to create lasting memories and enjoy shared activities together rather than physical gifts.” 

He’s not the only one who sees a rise in experiential purchases. Richard Blayney, Partner and Event Marketing Specialist at Apply Digital, said that a desire for unique experiences will be a major driver. “This holiday season, I think there will be a surge in personalized and experiential gifts,” he explained, “alongside a continued preference for online shopping. Convenience, coupled with a desire for unique experiences, will shape consumer behavior and preferences.”

What can you do to prepare? 

Your business might not sell a trip to a national park or a massage, but that doesn’t mean you can’t turn your product into an unforgettable experience. Start thinking about the post-purchase experience, what unboxing will be like for the receiver of the gift, and what your business can do to improve that. Extra swag inside the box, a unique package design, or even a loyalty program can help add that experiential twist to your product. 

Omnichannel shopping will dominate the landscape 

There are a few reasons omnichannel shopping will play such a major role this year. First is the rise of “deal day” shopping. Prime Day, Walmart Deals, and Target’s two Circle Weeks have been hugely successful this year, showing not only consumers’ love of a good deal, but also that marketplaces continue to be valuable search and purchasing tools for shoppers of all ages. 

But marketplaces aren’t the only channels seeing a massive influx of sales. In 2024, sales on social channels are slated to make up 19.4% of all sales in the ecommerce landscape. That’s a 100% increase from 2020. Because of this continued rise in social shopping, our partners think you’d be crazy to sleep on selling on channels like TikTok, Instagram, and Facebook. 

“No doubt social shopping will continue to rise, especially on platforms like TikTok and Instagram,” said Alex Fisher, Director of Client Delivery at Kepler. “The ease of shopping combined with heavy influencer marketing continues to be a recipe for success on these channels.” 

The rise in this trend matches the data for what brands are focusing on most. In a recent BigCommerce survey, we found that 32% of businesses said that their top strategy for the upcoming holiday season was expanding omnichannel efforts. That 32% will likely see a steep return on their investment. 

What can you do to prepare? 

As more and more customers flock to these channels, optimizing channel feeds and product information as early as possible is paramount to success. 

“Merchants will want to focus some of their marketing dollars on these platforms to ensure their products are showing up within the country’s biggest marketplaces, like Amazon and Walmart,” Brimbey said. “This is also a good incentive for brands to keep all product data feeds up-to-date and deliver the best possible product information for their customers.” 

Check to see if your ecommerce platform can easily integrate with the most popular marketplaces like Amazon, Walmart, or Target, social channels like TikTok, Instagram, or Facebook, and search engines like Google or Bing. Selling across as many channels as possible can help improve your product visibility and sell more. 

Feedonomics connects with over 300 channels to give merchants the most opportunity to sell more online. Learn more about your omnichannel opportunity here. 

Shoppers will want to buy now, pay later 

Buy now, pay later (BNPL) has been a rising trend for the last five-or-so years, and in 2024, with a shaky economy and price-conscious consumers, it promises to be a major component of the payment landscape. 

“The popularity of BNPL options is growing, as it allows consumers to spread out the cost of their purchases,” Fisher explained. “Brands offering flexible payment options can attract budget-conscious shoppers.” 

What can you do to prepare? 

Giving your customers more payment flexibility is never a bad idea. The Baymard Institute found that 13% of all shopping carts were abandoned because the customer didn’t see enough payment methods. Try adding diverse payment options like BNPL, digital wallets, one-click checkout, and others will help open your store up to a wider audience. 

AI will play an integral role in product recommendations and purchasing decisions

It wouldn’t be a blog post written in 2024 without a mention of artificial intelligence (AI). This year we’ve seen AI transform entire industries. And this holiday season, we’ll see AI play a pivotal role in a number of key areas. 

First, with AR, virtual try-on, and fitting rooms. A BigCommerce survey found that 50% of all brands expect consumers to engage more with brands that offer virtual or augmented reality shopping experiences. 

“Shoppers will use AR to allow customers to visualize products in their own space, such as placing furniture in their living room or seeing how a new appliance would look in their kitchen,” Flaherty said. “They could even try on clothes without ever stepping into a fitting room. This helps customers make more informed purchase decisions.”

Another key area is with product discovery and product recommendations. Many of our experts believe that, rather than browsing using traditional methods, users would be using generative AI tools to search for product recommendations or deals.

What can you do to prepare? 

First, optimize, optimize, optimize. Ensure your product descriptions hit on every keyword imaginable, and are as detailed as possible to make them easier for AI machine learning software to discover. At BigCommerce, our BigAI Copywriter can help you craft perfectly optimized product descriptions that are sure to attract customers. 

Also, make sure your business is taking advantage of the latest and greatest tech when it comes to AR and VR. There are plenty of tools and integrations available, and troubleshooting now can help alleviate some of shoppers’ biggest concerns when it comes to taking advantage of this new technology. 

The final word

To wrap things up, we asked our team of experts what advice they have for businesses as the 2024 holiday shopping season begins to ramp up. 

“Start planning. Now. It is important to have a well thought out strategy and content cadence,” said Zachary Keahey, Strategic Consultant at Human Marketing. 

Jared Shaner, Partner and Chief Revenue Officer at Trellis, agreed. “The best prepared brands will have daily retention/lifecycle emails and SMS going out to their core customers with unique offers,” he said. “Start planning that strategy now.” 

Want more help with your holiday planning? Check out the biggest trends of the 2024 holiday season here.