U.S. shoppers spent nearly $11 billion online on Black Friday, and Cyber Monday is on track for even larger numbers, generating more than $13 billion in sales.
However, consumer holiday spending on the whole is expected to take a hit this year — a 34% drop that translates to an $85 billion decrease, according to the QuickBooks Holiday Shopping Report, which surveyed 5,500 consumers and 2,000 small business owners across the U.S.
The report also revealed that an overwhelming majority of consumers (93%) plan to shop small to some extent this holiday season, resulting in more than $76 billion in spending at small businesses alone.
Joseph Black, director of product management, accounting and commerce at Intuit QuickBooks, tells Entrepreneur that the desire to support small businesses is “unwavering,” as 47% of consumers say they want to contribute to their communities and support local businesses, and 52% believe they can find more unique, high-quality gifts when they shop small.
Although many shoppers have already taken advantage of Small Business Saturday (November 30), Black Friday (November 29) and Cyber Monday (December 2), almost 30% plan to make their purchases on Christmas Eve or another day during the season, per the findings.
That means there are still many sales to capture. Of course, small businesses must differentiate themselves to do this.
According to Black, small business owners should make sure they’re leveraging the right digital and marketing tools, including those that help manage inventory and customize campaigns.
“AI-powered tools can also help streamline day-to-day operations and optimize selling potential, so small businesses can stay on top of their finances, especially during the holiday season when money is coming in and out so rapidly,” Black says.
Additionally, Black suggests small business owners tap into the emotional drive behind people’s desire to shop small.
Including personalized touches, such as complimentary gift wrapping or handwritten thank you notes, with purchases “can help set small businesses apart from larger competitors and even encourage buyers to shop with them beyond the holidays,” Black explains.
