Inflation, Tariffs Driving Holiday Spending Cuts: Kenco Survey

Economic concerns will persist into the 2025 holiday shopping season, leading 28% of consumers to lower their spend, an 11% increase over 2024. In fact, 58% said product pricing/inflation is their main concern heading into the holidays, compared to the second-place challenge – product availability – at just 16%, according to the 2025 eCommerce Peak Season Pulse from Kenco.

“’Deal’ is the key word for the 2025 holiday season – there’s going to be greater demand for the retailers that offer the best deal possible,” says Frank Loewen, SVP of logistics operations at Kenco. “Retailers and their logistics partners should also look for meaningful value-added offerings to offset higher prices, such as more economical shipping choices and simpler return options.” 

Key takeaways:

·        Nearly nine in 10 consumers said they’re concerned international trade issues, ranging from tariffs to shipping route disruptions, will impact holiday shopping.

·        56% said they believe these complications will be a primary reason for higher prices; 57% said they believe inflation will be a top factor as well. 

·        In fact, 75% of survey respondents agreed they would choose a free, slower shipping option over a payment-required, faster shipping option. Likewise, easy returns were the most influential shipping incentive in determining whether a consumer buys from a specific retailer (57%).

·        72% said free return shipping is the most important return-related incentive a brand can offer.

·        58% said they like to see real-time map tracking, while 36% want an estimated delivery countdown and 37% want delivery photo confirmation.