Jungle Scout, an Amazon-focused e-commerce firm, has released its latest report, finding that 67% of U.S. consumers plan to spend under $500 this year on holiday expenses.
The Q4 2022 Consumer Trends Report surveyed more than 1,000 U.S. consumers about their shopping plans this holiday season, finding that consumers are expected to spend nearly 40% less on holiday-related expenses this year compared to the 10-year national average. With inflation remaining high, more than half (58%) of consumers are searching for deals and discounts when holiday shopping.
A third (33%) of consumers are cutting holiday expenses, with top methods of cutting back including spending less on holiday gifts and decorations. The findings echo previous reports that showed consumers looking to cut back on non-essential spending.
Jungle Scout, based in Austin, Tex., also found that consumers are increasingly getting gift ideas by digital media. The report found that 20% of U.S. consumers get holiday gift ideas from social media, with Facebook leading as a source of inspiration, followed by Instagram and TikTok.
"Consumer expectations and priorities will shift in 2023, as inflation continues to impact spending," says Michael Scheschuk, president of Small & Medium Business at Jungle Scout. "As e-commerce advances, consumers will seek personalization at every stage of the customer journey. Brands should diversify sales channels and consider expanding into social commerce through popular platforms like TikTok, allowing them to engage with new audiences in more authentic and memorable ways."
The full report from Jungle Scout can be found here.