The US holiday season consumption boom has come early! How can sellers seize the opportunity?

It is learned that although summer is not completely over, Americans have already started their holiday shopping. Persistent inflation has consumers worried about further price increases for holiday season goods, and supply chain issues have also raised concerns about whether there will be enough inventory in the next three months.

Holiday season spending is coming early

According to Bankrate data, 25% of consumers either started holiday shopping last month or plan to start shopping in September. Another 25% expect to start shopping in October, while only 40% plan to start shopping in the last two months of the year.

According to Salesforce, consumers’ desire to snap up holiday gifts before prices rise is the main reason 37% of U.S. consumers (and 42% globally) plan to start shopping for gifts earlier this year.

Amazon's new fall Prime event is expected to take place next month, which may prompt many people to start their holiday shopping earlier than in previous years. Some retailers are also expecting these trends to continue, launching Halloween and seasonal product lines earlier.

With inflation top of mind for many consumers, retailers would be wise to try to use early promotions to drive holiday sales. By pushing consumers to buy early, retailers can help them avoid further inflating inventory, allowing for better merchandise flow while reducing the need for a frantic end-of-season rush.

How can sellers seize the opportunity?

It's wise to offer holiday shopping early in order to maximize profits. But don't be too obvious and put out the Christmas tree early. According to analysts, "customers may also be annoyed by such an overt and premature promotion of the holiday season."

On commodity pricing, analysts said now is not the time to push sales and cut prices, but it is a good idea to sell inventory early because selling later may be more expensive due to inflation.

Marshall Cohen, chief retail advisor at global market research firm NPD Group, added that promoting installment payment options might be a good idea for some businesses.

Merchants should also look at existing return policies, Cohen noted. If you have a 30-day return policy, consider extending it to accommodate post-holiday gift returns.

In summary, maintaining strong customer service, adequate inventory levels, and understanding customer needs are important ways to seize holiday season consumption in advance.

Editor✎ Ashley/

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