It’s almost that time of the year already. With the most important shopping season approaching, Klaviyo surveyed 3000+ US consumers about their plans to shop this Black Friday and Cyber Monday. Here are some of the key takeaways in their 2023 Consumer Trend Report.
Economics Outlook
- More than half of the surveyed expressed pessimistic outlook for the current economic environment.
- With inflation high up and the Fed’s high interest rates, people believe the economy is getting worse in the near future.
Spending Pattern Change
- The change in the economics are felt by most. 82% of people stated that they adjusted their consumer trend and spending behavior due to the external economic crisis.
- We see an increase in the Engel’s coefficient, i.e. people are spending more in food, utility, and other essentials.
- Correspondingly, leisure and fun spendings were cut severely.
- The major concern is prices. With the lastest surge in inflation, people can’t enjoy luxuries as much as they used to.
- Many industries are still recovering from the COVID low. With layoffs and pay cuts, people have less income.
- Around half of the surveyed thinks they’re comfortable with small luxuries. This is likely a manifestation of the so-called ‘lipstick effect‘.
- The main reasons behind spending a lot in luxuries are for financial security and personal enjoyment.
What Can e-Commerce Sellers Do?
In response to the new consumer trend, the sellers need to react and adapt to better their chances to keep up the sales. Here is a list of things sellers can consider:
Optimize Online Presence
Ensure your website is user-friendly, mobile-responsive, and offers a seamless checkout process. Fast-loading pages and intuitive navigation can enhance the user experience.
Use New Platforms Like TikTok
New opportunities arise when TikTok opened TikTok shops. With user generated content, sellers have a better way to showcase their products and interact with potential customers.
Diversify Product Offerings
Expand your product range to include essential items that are in high demand. Focus on products related to health, hygiene, home essentials, and work-from-home accessories.
Enhance Customer Communication
Keep customers informed about safety measures, delivery protocols, and product availability. Transparent communication can build trust and confidence among consumers.
Implement Flexible Return Policies
Given the uncertainty, offer lenient return and refund policies. This can boost customer confidence, making them more likely to make a purchase.
For more ecommerce insights, visit Kalodata Blog to find more.
