Radial Unveils 2024 Holiday Shopping Insights: Consumers Demand Faster Delivery and Budget-Friendly Options in Shorter Peak Season

New survey highlights key trends for brands and retailers, including increased pressure on delivery speeds, financial caution among shoppers, and the importance of a seamless click to delivery experience.

KING OF PRUSSIA, Pa.-(BUSINESS WIRE)-Radial, Inc., a bpostgroup company, the leader in eCommerce solutions, today announced the results of a consumer survey that reveals anticipated shopping and delivery preferences for this holiday season. The research uncovers trends that brands and retailers must address to meet shopper expectations and maximize sales during this peak retail window.

Brand success is critical this time of year, and by understanding important factors such as the trend towards a more concentrated shopping window, increased expectations for fast delivery, and ongoing financial caution from consumers, they can win consumer loyalty.

"Economic uncertainty, product pricing, and delivery timelines are top of mind for consumers this year, and brands must take note. To maintain a customer-centric approach throughout the full click to delivery experience, it's crucial to prioritize transparency, flexibility, and speed," said Shauna Bowen, SVP of Click to Delivery, Radial. "By providing clear information about product availability, delivery times, and pricing, brands can empower consumers to make informed decisions. Additionally, offering faster delivery and flexible payment options can help alleviate financial concerns and enhance the overall shopping experience. By focusing on these key elements, businesses can better meet consumer demands, build lasting brand loyalty, and thrive in today's climate."

A more aggressive peak season
With only 27 days between Thanksgiving and Christmas this year - a shorter period than in 2023 - consumers are adjusting their holiday shopping timelines. An overwhelming majority (90%) of surveyed respondents will have started their holiday shopping before December 1. Within that group, a notable 31% intend to begin in October, coinciding with events like Amazon's Prime Day and other early holiday promotions. Still, November remains the heaviest shopping month with 42% planning to kick off their holiday shopping to align with blockbuster events like Black Friday and Cyber Monday. This shift is likely driven by concerns over inventory availability, pricing, and the shorter holiday period.

Brands and retailers should prepare for an aggressive holiday shopping season that picks up at the end of November when consumers anticipate the most significant deals and lowest prices. This requires a strategic approach for retailers who must plan for these surges occurring in a smaller window of time - putting more strain on their workforces and fulfillment operations.

Heightened expectations for faster delivery times
Although the peak season is shorter, consumers are demanding faster delivery times for their holiday purchases. Radial's research shows this year, 29% of shoppers expect their holiday gifts to be delivered within 2 to 3 days, a 53% YoY increase from 2023. Additionally, 45% of consumers find a 3- to 5-day delivery window reasonable, reflecting a 22% YoY growth from 2023. Only 26% of consumers said that waiting a week or more is acceptable. The stakes are high for brands as 73% of consumers noted they would not purchase again from a retailer that provided a poor shipping or returns experience during the holidays.

The same poll also identified that consumers want more control over their delivery experience. More than half (58%) of consumers noted they will likely use a feature that allows selecting specific delivery days if the cost is reasonable and slots are generally available - indicating the need for delivery flexibility for today's consumer. Brands and retailers should consider offering varied delivery services to accommodate different consumer preferences around speed and convenience, particularly as consumers are less forgiving of unmet expectations.

Continued financial caution among consumers
Economic pressures continue to influence holiday shopping behaviors with 38% of consumers reporting a smaller budget for holiday gifts this year, up from 27% in 2023. This heightened concern is a reaction to ongoing economic uncertainties, pushing consumers to seek the best sales.

Radial's research also reveals that 18% of shoppers expect to use Buy Now Pay Later (BNPL) or other financing options, with Millennials (27%) being the most likely to do so. This indicates a growing preference for flexible payment methods to manage holiday expenses without reducing gift-giving despite economic stressors.

Retailers need to offer competitive pricing and attractive promotions to cater to budget-conscious shoppers. Highlighting flexible payment options such as BNPL can help appeal to consumers who are looking to manage their spending more effectively.

Additionally, by offering personalized services as low-cost upgrades, retailers can cater to those who are willing to pay for a more customized shopping experience without alienating price-sensitive shoppers. For example, 55% of Gen Z and 52% of Millennials in Radial's survey would pay for gift wrapping at the right price, demonstrating an opportunity for brands to alleviate some of the holiday stress around gift presentation.

Survey results underscore the importance of a comprehensive click to delivery experience to establishing success well beyond peak, particularly as consumers remain challenged by financial stressors and become accustomed to waiting for the best deals they can find. For brands, the shortened peak window will only make these demands more acute.

Methodology
Radial conducted the survey with Dynata in August 2024, targeting 1,000 general U.S.-based consumers over 18 years of age.

About Radial
Radial is the industry's largest 3PL provider that offers integrated payment, fraud detection, and omnichannel solutions to mid-market and enterprise brands. Leveraging over 30 years of industry expertise, Radial rejects the one-size-fits-all approach, instead tailoring its services and solutions to align strategically with each brand's unique needs.

Our team supports brands in tackling common eCommerce challenges, from maintaining delivery consistency to ensuring secure transactions. With a commitment to fulfilling promises from click to delivery, Radial empowers brands to navigate the dynamic digital landscape with the confidence and capability to deliver a seamless, secure, and superior eCommerce experience.

Contacts

Media
Daysi Robles Lopez
PAN Communications
[email protected]