As eCommerce merchants compete to secure couples’ Valentine’s Day spending, Amazon introduced a new option targeting last-minute gifting occasions.
The retail giant shared via email that it is adding a “Get it by Tomorrow” filter to its Valentine’s Day Shop, a move to secure the spending of those rushing to make their purchases as the holiday approaches.
The move comes as retailers anticipate a surge in spending over the holiday. According to data from the National Retail Federation and Prosper Insights & Analytics, Americans are projected to spend a record-breaking $14.2 billion this Valentine’s Day. Digital adoption for the occasion is on the rise, with 40% of shoppers turning to digital channels, up from 35% last year.
This expected uptick comes as consumers’ economic outlook improves. The latest installment of PYMNTS Intelligence’s “New Reality Check: The Paycheck-to-Paycheck Report,” “The Pessimism About Pay Rises Offsets the Effect of Falling Inflation” edition, drew from a December survey of more than 4,300 U.S. adults. It found that 58% of consumers expect their savings to increase in the year to come. Plus, 38% of consumers expect their wages to increase at least on par with inflation.
As such, retail giants are seeking ways to capture this digital opportunity. Costco has its digital Valentine’s gift guide; Walmart is touting its selection of last-minute gifts; and Target is advertising its holiday-specific assortment for same-day pickup.
The last-minute gifting occasion is significant. Over the December holidays, eCommerce marketplaces competed for the spending of these late shoppers, with Uber introducing a courier pickup feature for gifting, and with many merchants offering giftable subscriptions, circumventing the challenges consumers face trying to get items shipped on time.
Consumers are increasingly turning to digital channels for their holiday shopping. Take, for instance, all the purchases consumers made for the December holidays over Black Friday. The PYMNTS Intelligence study “Black Friday 2023: Consumers Widen Their Search for Holiday Bargains,” which drew from a survey of nearly 2,700 U.S. consumers, found that of the 65% of consumers that made purchases during the sales event, three-quarters did so at least partially via digital channels.
Plus, consumers prioritize spending on gifts, even at times when their budgets are constrained. The PYMNTS Intelligence report “The Credit Economy: How Consumers Are Approaching Holiday Spending and Travel” from this past holiday season found that 94% of holiday shoppers said they were taking action to make sure they didn’t have to cut back on gifts.
The introduction of Amazon’s “Get it by Tomorrow” filter for Valentine’s Day shopping underscores the strategic imperative for retailers to cater to last-minute shoppers via their digital channels, as major players such as Costco, Walmart and Target are similarly adapting their strategies to harness the eCommerce opportunity. With consumers increasingly embracing digital channels and prioritizing gift-giving even amidst budget constraints, merchants are compelled to innovate and streamline the shopping experience to meet evolving consumer demands, making gifting as simple and intuitive as possible.
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