Retail and e-commerce business owners polled said they’re also willing to offer steeper discounts to entice customers compared to promotions they offered in 2021.
Fiverr International Ltd., (NYSE: FVRR), the company that is revolutionizing how the world works together, has compiled new data revealing how small-to-medium-sized retail and e-commerce businesses in the U.S. plan to navigate an uncertain holiday shopping season. Fiverr conducted a nationwide survey of 505 business owners and executives, shedding light on the tactics businesses are using to remain competitive and their expectations for sales performance compared to last year. The findings reveal that while many business leaders anticipate challenges due to inflation and a looming recession, with the right strategy and preparation, they remain largely optimistic about their sales this year.
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Fiverr has compiled new data revealing how small-to-medium-sized retail and e-commerce businesses in the U.S. plan to navigate an uncertain holiday shopping season. (Graphic: Business Wire)
“The data shows businesses are shifting their strategy, preparing early and prioritizing marketing channels that will keep them competitive in the current market,” said Gali Arnon, CMO of Fiverr. “Whether it’s web design, social media ads, or SEO, Fiverr aims to provide talent resources that allow small to medium businesses to adapt quickly and remain competitive this holiday season amid an uncertain economy.”
Several trends that emerged from the data include:
Business leaders are aware of the potential negative impact that inflation, the economic downturn, and supply chain disruptions could have on their business this season.
- More than 1 in 3 business leaders surveyed (36%) said the economic downturn and inflation’s impact on sales (37%) would be among the greatest challenges they anticipate their business will encounter this holiday season.
- Supply chain concerns still linger: 43% of respondents said supply chain disruptions or inventory shortages would be among the greatest challenges they will encounter this holiday season, along with competition from larger e-commerce retailers (37%).
Business leaders are preparing earlier and offering steeper promotions this holiday season.
- The majority (64%) of business leaders polled started holiday promotion planning 1-3 months earlier this year compared to 2021.
- Nearly half (47%) of executives surveyed plan to offer steeper holiday discounts this year compared to last year.
Nearly 100% of small-to-medium retail and e-commerce businesses plan to reduce their investment in some form of marketing or advertising compared to last year.
- 1 in 3 executives surveyed plan to reduce investment in email marketing compared to last year, and just over 1 in 4 plan to cut back on in-store promotions or events.
- Nearly 90% of business leaders surveyed say social media is sacred; they have no plans to cut back ad spend in this area this holiday season, and 41% plan to increase their spend in this category.
Despite a looming recession and high inflation, retail and e-commerce business leaders are optimistic about the holiday shopping season.
- 88% of business leaders surveyed believe they’ll make the same or more this holiday season as last year.
- But the stakes are high — half* of business leaders surveyed believe their sales performance this holiday shopping season will have more of an impact on their overall business outlook compared to previous years.
This survey was conducted in partnership with Censuswide. You can also find a collection of expert tips and resources for businesses navigating this holiday season in Fiverr’s Holiday Hub.
*‘Our sales performance this holiday shopping season will have some impact on our overall business outlook compared to previous years‘ and ‘Our sales performance this holiday shopping season will have a lot of impact on our overall business outlook compared to previous years‘ answers combined.
Fiverr’s mission is to revolutionize how the world works together. We exist to democratize access to talent and to provide talent with access to opportunities so anyone can grow their business, brand, or dreams. From small businesses to Fortune 500, over 4 million customers worldwide worked with freelance talent on Fiverr in the past year, ensuring their workforces remain flexible, adaptive, and agile. With Fiverr’s Talent Cloud, companies can easily scale their teams from a talent pool of skilled professionals from over 160 countries across more than 550 categories, ranging from programming to 3D design, digital marketing to content creation, from video animation to architecture.