While the holiday shopping season is months in the future, one of the very first predictions of e-commerce during that time is in and it predicts slightly less growth for U.S. merchants than last year. Search marketing firm NetElixir predicts holiday e-commerce volume will grow 10 percent this year compared to last after 11 percent growth from 2015 to 2016.
NetElixir attributes the slight decrease in growth to the success of Amazon Prime Day (many shoppers got some early Christmas shopping done during that day of deals), lower prices overall online and general softness in retail. The company also expects Amazon to suck up more dollars during the holiday season in 2017 than it did last year (34 percent of all e-commerce vs 30 percent last year).
“With Amazon continuing to play a huge role in e-commerce consolidation, retailers need to prioritize e-commerce in order to stay competitive during the holiday shopping season,” said Udayan Bose, founder and CEO of NetElixir. “There are also some expected consumer behaviors that retailers can leverage, like the higher percentage of consumers who will make last-minute purchases before Christmas. We also found that post-Christmas purchases, otherwise known as ‘me buys,’ are going to experience a substantial increase this year, giving retailers an opportunity to recoup some of their losses from the holiday period.”