‘Deal’ is key word for holiday season; free shipping, easy returns also key
Inflation and tariffs will drive spending cuts for holiday shoppers this year.
Economic concerns will persist into the 2025 holiday shopping season, leading 28% of consumers to lower their spend, an 11% increase over 2024, according to the “2025 eCommerce Peak Season Pulse” from third-party logistics provider Kenco. More than half (58%) of the surveyed North American consumers said product pricing/inflation is their main concern heading into the holidays, compared to the second-place challenge, product availability (16%).
Nearly nine-in-10 consumers said they’re concerned international trade issues, ranging from tariffs to shipping route disruptions, will impact holiday shopping. Fifty-six percent said they believe these complications will be a primary reason for higher prices. Over half (57%) said they believe inflation will be a top factor as well.
“'Deal' is the key word for the 2025 holiday season — there’s going to be greater demand for the retailers that offer the best deal possible,” said Frank Loewen, senior VP of logistics operations at Kenco. “Retailers and their logistics partners should also look for meaningful value-added offerings to offset higher prices, such as more economical shipping choices and simpler return options.”
A wide majority (75%) of survey respondents said they would choose a free, slower shipping option over a payment-required, faster shipping option.
Likewise, easy returns were the most influential shipping incentive in determining whether a consumer buys from a specific retailer (57%). Seventy-two percent said free return shipping is the most important return-related incentive a brand can offer.
Other highlights from the report are below.
- Easy returns were the most influential shipping incentive in determining whether a consumer buys from a specific retailer (57%).
- Consumers also like shopping with brands that provide deeper visibility into the delivery process. Fifty-eight percent said they like to see real-time map tracking, while 36% want an estimated delivery countdown and 37% want delivery photo confirmation.
- Despite many respondents’ preferences for cheaper shipping options, 51% said they’d be willing to pay a fee to guarantee a specific delivery window.
“Don’t underestimate the power of convenience, even in a tighter economy,” Loewen said. “Especially if they’re purchasing a last-minute gift, buyers want to know exactly when it will be at their doorsteps – and even want control over that timeframe. That’s why retailers should make end-to-end supply chain visibility a priority when determining new projects with their logistics partners.”
