With the holidays rapidly approaching, we know retailers are looking at ways they can capture more online gift sales from their existing customers, as well as new customers. At Loop, we are continuously analyzing everything happening across our network of retail partners to provide insights and tips to help retailers capture additional gift purchases.
For example, we identified a large opportunity for retailers to capture sales from “last minute gifting” from the roughly 20 percent of people psychologists call chronic procrastinators. In 2015, we saw that close to 40 percent of e-gifts were purchased the day before, or day of, a holiday. Additionally, last year, we saw 38 percent of holiday e-gifts were purchased after December 25th. We found that gift buying did not end on the holiday date, but even extended a week or so afterwards.
We also found that gift giving has become a year-round activity, with birthdays representing the largest gift-giving event. In fact, we found that 40 percent of gifts purchased between Black Friday and December 25th last year were not Christmas related. With consumers buying an average of 21 gifts each year, we discovered many consumers purchase gifts for others “just because.” In fact, over the last 12 months, 20 percent of e-gifts were purchased just because, rather than being tied to a specific holiday or event. By promoting holiday gifts along with gifts that are appropriate year-round, retailers can capture gift sales for multiple occasions.
It’s also interesting to see the differences in gifting between men and women. Although women typically buy more gifts than men, 25 gifts versus 17 gifts annually, men tend to spend more money per gift than women. E-gifts sent by men had a 15 percent higher AOV than those sent by women, and for certain occasions, like Mother’s Day, men spent even more.
Also, by helping shoppers avoid the guesswork of size, style or preferred color involved in gift buying, e-gifting can help retailers capture sales of “hard to gift items” like apparel, jewelry and shoes. We found that 60% of e-gifts fall in this category of “hard to gift items.”
Take a look at our infographic below to see other ways Loop’s e-gifting solution can have a meaningful impact on your business and gifting strategy.
About Loop Commerce
Loop is driving a paradigm shift in e-commerce by removing the obstacles consumers face when trying to buy a physical product as a gift. Used by the world’s top retailers, Loop is the first and only enterprise-grade, product-based e-gifting solution that offers checkout, delivery and redemption of products as real gifts–not gift cards. Backed by PayPal and several other influential technology and retail industry leaders, Loop was recognized by Forbes magazine as one of “12 companies moving global commerce forward.”