DTC & Subscription Advertising News


Ecommerce Sales To Hit New Highs Throughout The 2020 Holiday Shopping Season

October 30, 2020 Carolyn Harding

Shutterstock_ 746278375 Christmas presents laying down on the sofa and women using tablet to shopping online is visible in the background

The pandemic-influenced ecommerce boom is quickly transitioning into the 2020 holiday season of online revenue growth. Even with the uncertainty so many consumers are facing, the holidays remain an exciting time for gift giving, and consumers are browsing online sites with the intent to purchase. According to the National Retail Federation (NRF), this year, consumers expect to spend roughly $998 on “gifts, holiday items such as decorations and food, and additional ‘non-gift’ purchases for themselves and their families.”

As more holiday predictions begin rolling in, a rise in ecommerce transactions looks to be at the top of many charts for what to expect. “With worries around product availability and health concerns heavily impacting the in-store shopping experience, consumers are more likely to shop online for gifts this season and they are starting earlier than in previous years,” said Brian Walker, chief strategy officer of Bloomreach.

New Reports Hint At Significant Spike In Ecommerce Holiday Sales

Traditional brick-and-mortar retailers were hit hard amidst the pandemic, leading many businesses to invest in strong online presences in order to reach consumers. The positive results of expanding ecommerce offerings became clear early on for many retailers. During the first two quarters of 2020, stores like Ulta, Macy’s and Kohl’s experienced dramatic spikes in their ecommerce revenue, rising roughly 200%, 53% and 60% respectively. The International Council of Shopping Centers predicts a 25% rise in ecommerce sales in 2020.

Now entering into the last months of 2020 and the highly anticipated holiday shopping season, new data shows that the surge in ecommerce transactions will continue. ACI Worldwide data recently revealed that, in September alone, global ecommerce transactions rose 21% year over year (YOY). Among the top-performing areas were gaming and retail, experiencing 71% and 45% ecommerce sales increases.

shopping destinations nrf.com

Further data from ACI Worldwide projected a 27% rise in global ecommerce transactions throughout the holiday shopping season (October-December). In a similar vein, NRF shared that this year, 60% of consumers expect to buy their holiday-related items entirely online, while Deloitte shared it expects “holiday ecommerce sales to surge by 25% to 35% this season.”

BOPIS, Free Shipping & Related Offerings Will Help Drive Ecommerce Sales During The Holidays

As a natural result of increased online shopping, consumers are also taking advantage of brands’ seamless and safe purchase offerings, like the buy online, pick up in-store (BOPIS) model, free shipping, curbside pick-up and more. According to the NRF, 91% of online shoppers expect to use free shipping offerings, 44% will rely on the BOPIS option and 16% will take advantage of same-day delivery. Data from ACI Worldwide revealed an anticipated 40% spike in consumers utilizing the BOPIS model throughout the holiday shopping season.

Shutterstock_742230118 mobile payment ,online shopping concept

Debbie Guerra, executive vice president of ACI Worldwide, credits the emergence of options like BOPIS to brands’ ability to reach wider audiences and improve the overall “buying journey experience.” Guerra stated, “The accelerated use of digital payment channels due to the pandemic has resulted in both cross-channel journeys such as BOPIS as well as the blurring of the channels themselves — such as the usage of mobile devices and mobile check-out inside physical stores.”

Major retailers have already responded to consumers’ increased demand for these convenient purchase options during the holiday season. Recently, Target announced its plans to hire 130,000 seasonal employees, specifically doubling the amount of employees it has working its “Drive Up” and “Order Pick Up” offerings. MarketingDive reporter Kaarin Vembar notes that Target is also preparing employees to “support omnichannel services,” which saw a 273% spike in Q2 2020. Similarly, Walmart shared plans to hire 20,000 seasonal employees in preparation for increased demand surrounding its “ecommerce fulfillment efforts.”

Retailers & Brands Should Invest In Strong Ecommerce Presences & Fulfillment Options This Holiday Season

The need for retailers and brands to enhance their ecommerce and fulfillment capabilities in order to compete with industry peers and entice consumers is high this holiday season. By expanding their ecommerce offerings and providing seamless and convenient buying options (like BOPIS), retailers and brands can create engaging online customer experiences and connect with consumers right where they are as they actively discover new products during the 2020 peak buying season.

Are You Looking For New Ways To Reach Targeted Audiences?

Digital Media Solutions® helps brands flourish by capitalizing on consumer intent and engagement, deploying sophisticated adtech with big data intelligence to connect brands with consumers at the moments they’re most ready to take action, using messages proven to resonate.

Contact DMS

About the Author

Carolyn Harding

Carolyn Harding is an Associate Manager of Communications at Digital Media Solutions (DMS), the fastest-growing independent digital performance marketing company. DMS helps its clients accelerate growth by deploying diversified and data-driven customer acquisition solutions that deliver scalable, sustainable and measurable marketing results. DMS performance marketing solutions connect the right consumers with the right offers at the right time to achieve the marketing objectives of our clients. DMS is continually innovating to provide new and emerging media and technology solutions that minimize waste and maximize results across the most competitive industries. Since its inception, DMS has demonstrated incredible year-over-year growth which has earned recognition on the Inc. 5000 list in 2014, 2015, 2016, 2017 and 2018.

More Content by Carolyn Harding
Previous Article
Dietary Supplement Demand Rises, Increasing Opportunities For Health & Wellness Advertisers Ahead Of Resolution Season
Dietary Supplement Demand Rises, Increasing Opportunities For Health & Wellness Advertisers Ahead Of Resolution Season

Consumer interest in health and wellness products continues to benefit dietary supplement brands, with stud...

Next Article
Brands Eye Homeschooling Families As Growing Consumer Segment
Brands Eye Homeschooling Families As Growing Consumer Segment

Homeschooling is growing as a result of the pandemic, and learning platform brands are providing services t...

× Streams