Over 80% of Retailers To Offer Discounts This Holiday Season, Says Report

Fiverr has released research highlighting that over 80% of retailers plan to offer discounts, compared to 55% last year, and outlining how retailers are preparing for the 2024 holiday season. The study, conducted in partnership with Censuswide, surveyed over 2,500 consumers and small-to-medium business leaders. Key findings reveal how retailers are adopting strategic marketing, freelance talent, and AI technologies to compete with larger e-commerce brands and engage Gen-Z consumers while navigating economic challenges like inflation.

"The holidays are often make-or-break for many small businesses," said Gali Arnon, Fiverr's Chief Business Officer. The research shows retail businesses are heavily investing in social media campaigns and AI to streamline operations and attract early shoppers. To capitalize on this spend-happy consumer demographic, retailers are investing in AI (70%), social media ads (39%), 35% influencer marketing campaigns, email marketing (33%), and SEO (29%)

Key Trends and Findings

Here's the key findings from Fiverr's research on retailers' readiness for the holiday season:

1. Leveling the Playing Field

1. • 53% of surveyed businesses don't see competition from large e-commerce brands like Amazon and Temu as a challenge.
   • Inflation is the predominant concern, cited by 48% of global respondents.
   • Staffing shortages remain an issue, with a third of retailers hiring freelancers to support their holiday operations.

2. Consumer Preferences and Shopping Trends

1. • 80% of businesses are offering discounts to attract deal-hunters, compared to 55% last year.
   • Customers prioritize good deals (42%), free shipping (32%), and high-quality products (30%).
   • Fast shipping remains critical for last-minute shoppers, with 18% focusing on rapid delivery.

3. Gen Z Shopping Behavior

1. • 43% of Gen Zers plan to spend more this holiday season, compared to 37% of millennials.
   • Social media is pivotal, with 34% of Gen Zers using TikTok Shop and 25% relying on social media influencers for gift ideas.
   • In the U.S., 54% of Gen Zers find gifts on TikTok Shop, with significant influence from Facebook and Instagram ads (33%) and influencer recommendations (24%).

4. AI Integration in Retail

1. • Nearly 68% of surveyed retailers are implementing AI in their operations.
   • 41% plan to invest in AI tools to speed up work, while 35% aim to embed AI throughout the customer journey using chatbots, personalization, and customized marketing campaigns.
   • Gen Z is already embracing AI, with over 54% using it to find the best prices (17%), discover gift ideas (22%), or create holiday presents (18%).

Fiverr's 2024 Holiday Shopping research emphasizes the importance small-to-medium retail businesses are placing on digital marketing, AI, and social media to navigate the holiday season's challenges. With inflation a significant concern and staffing shortages persisting, retailers are turning to freelancers and advanced technologies to stay competitive. Gen Z's increasing online purchasing power also signals a shift in marketing efforts, highlighting the importance of engaging this demographic through social media and AI.