Fiverr International Ltd., a global freelance platform, has released research exploring retailers’ readiness for the upcoming holiday season indicating businesses are taking a more strategic approach to how businesses manage marketing efforts, freelance talent, and AI technologies as they look to level the playing field against larger e-commerce brands while also capturing Gen-Zers’ shopping habits and grappling with the economic hurdles like inflation.
“The holidays are often make-or-break for many small businesses, so it is critical to plan ahead, know where to place your focus and ensure that your audience is getting the right message,” said Gali Arnon, Chief Business Officer at Fiverr. “This data shows that retail and e-commerce businesses are doubling down on social media campaigns to reach new markets and embracing AI to streamline their daily operations as more and more consumers are looking to buy the perfect gift as far ahead of the holiday season as possible.
“With inflation, competition, and staffing shortages intensifying both online and in stores, the insights from our latest research underscore the type of expertise businesses need to stay ahead. Demand is up for experts with AI skills, digital marketing, and social media to maintain loyal customers and reach new audiences near and far.”
Fiverr conducted a global survey of over 2,500 consumers and over 2,500 small-to-medium business leaders (excluding sole traders) in partnership with Censuswide.
Key findings:
- Smaller retailers have found their place among larger companies like Amazon and Temu with 53 per cent of surveyed businesses not considering competition from larger e-commerce brands as a challenge this year;
- Inflation becomes the predominant concern for businesses, with 48 per cent of global respondents citing it as their primary challenge;
- A third of retailers surveyed cite staffing shortages ahead of the holiday season, simultaneously, a third of retail and ecommerce businesses are now hiring freelancers to support their operations;
- Compared to last year (55 per cent) over 80 per cent of businesses are now offering discounts on their products to satisfy the deal-hunters;
- Customers are continuing to prioritize good deals (42 per cent), free shipping (32 per cent), and high-quality products (30 per cent);
- Last minute shopping remains a priority as well, with 18 per cent of global respondents focusing on fast shipping times;
- 52 per cent of people surveyed will start buying presents in October and November while 18 per cent are hitting the summer sales to find gifts;
- 43 per cent of Gen-Zers are planning to spend more this holiday season, compared to the 37 per cent of millennials that plan to do to same
- 57 per cent of U.S. retailers surveyed are investing in social media ads to reach their target audiences;
- Global surveyed retailers are investing in: 39 per cent social media ads, 35 per cent in influencer marketing campaigns, 33 per cent email marketing, 29 per cent updated product pages and improved SEO functionalities;
- Amongst Gen-Zers: 34 per cent use TikTok shop; 25 per cent get their gift ideas through social media influencers’ recommendations; and 14 per cent use generative AI search to help with gift buying;
- In the U.S., TikTok shop continues its dominance – nearly 54 per cent of Gen-Zers find their gifts on this platform alone;
- Surveyed U.S. Gen-Zers also cite social media as a major influence in their holiday shopping – a third of respondents plan to find gifts via Facebook and Instagram ads, and nearly a quarter (24 per cent) through influencer recommendations;
- With shopping increasingly moving online, nearly seven in 10 retailers (68 per cent) surveyed are now implementing AI throughout their operations this holiday season – and they want Gen Z to take noticel
- 41 per cent of retailers surveyed plan to invest in AI tools to expedite work, and 35 per cent want to embed AI throughout the entire customer journey with chatbots, customer personalization, or customized marketing campaigns; and
- AI is already becoming second nature for Gen Z, over 54 per cent of Gen-Zers use AI to assist in their holiday shopping – whether it be to find the best prices (17 per cent), find new gift ideas (22 per cent), or to even create holiday presents themselves (18 per cent).
