November and December digital sales are expected to reach $1.12 trillion worldwide, according to a recent report conducted by customer relationship management firm Salesforce.
According to the Salesforce Shopping Index, which analyzes global data from more than one billion consumers, inflation – in the form of skyrocketing retailer costs and increased consumer prices – will play a key role in the 2022 holiday shopping season.
As retailers and suppliers struggle to absorb operating costs, leading to higher prices for consumers, data reveals that overall online spending will remain strong when compared to pre-pandemic.
As global online prices grow 7% compared to 2021 – and 15% compared to 2020 – consumers’ total online orders will drop 7% compared to the 2021 holiday season.
In addition, the study shows that the increasing costs for suppliers, labor, and transportation will outpace retailers’ ability to pass costs onto customers, putting 10% of profits at risk for retailers and brands.
Inflationary pressure will drive more than four in 10 shoppers (42%) to kickstart holiday shopping earlier than ever this year. Salesforce predicts that 29% of holiday sales will occur in the first three weeks of November.
Moreover, the analysis suggests that the majority of consumers, six out of 10, say they will look for sustainable products and shipping options this holiday season. Despite this strong preference, less than one in four brands and retailers (23%) will promote and offer sustainable options throughout the shopping journey.