Consumers Show Less Interest in E-commerce Spending for Holiday Sales

By Shubhendra Anand , 19 March, 2024

The market condition in 2023 is expecting retail sales and seasonal budgets to increase. This may affect consumers' buying of the products as the surveys expect consumers to spend less on gifts in 2023.

In the recent past, retailers suffered from supply chain disruptions, higher inflation, and other problems that affected consumer buying. These problems have affected e-commerce and holiday season sales earlier. Experts believe that holiday season sales may increase from November 2023 onwards as the market condition is better than in past years. According to the surveys, retail sales in this period are expected to be between 3.5 percent and 4.6 percent in 2023. It will increase compared to the retail sales in 2022, which may reach USD 1.56 trillion in 2023. The survey data suggests that the e-commerce sector may witness more significant sales. Online sales are expected to reach USD 232 billion, with a growth rate of 8.4 percent in 2023.

Surveys also noted a downward graph in consumer's confidence in shopping for goods and services. Despite the fact that inflation is at its lowest and market supplies are fair, consumer buying is less in 2023. There is a low level of confidence among the consumers, as noted by the retail companies. The consumers are supposed to pay more and get less as the sales are expected to increase yearly. Experts noted a lack of interest among consumers regarding sales for the holiday season 2023.

In contrast, consumer spending in the holiday season was much higher in 2022 than the recorded data for 2023. The main reasons consumers limit their expenditure in the e-commerce market are persisting inflation rates and increasing interest rates in 2023. Though the supply chain disruptions and inflation have come down in 2023 compared to the earlier period, it still affects the consumers' budget, resulting in less consumer spending in 2023.