Online retailers are turning to social media to boost holiday season sales

Sean Cao

13th Sep 2024

Retail business owners in Australia are prioritising social media-related strategies to attract and retain customers ahead of the peak holiday sales season, a Shopify report finds.

Up to 70 per cent of retailers said they will prioritise social media engagement for customer retention. About 42 per cent plan to provide exclusive offers, while 38 per cent focus on enhancing customer service.

Organic social media content (47 per cent) and paid advertisements on social media (32 per cent) ranked as the top two strategies for attracting new customers.

About 63 per cent of retailers said they will be leveraging social media platforms for direct sales.

Approximately 33 per cent of retail entrepreneurs are optimistic about the peak holiday sales season, compared to 35 per cent who are less optimistic. 

The top concerns include consumer spending levels (77 per cent), inflation (76 per cent) and local economic conditions (71 per cent). 

To cope with changing consumer behaviour, 48 per cent of respondents said they will adjust pricing strategies to remain competitive, while 46 per cent are increasing promotional activities to boost sales. About 37 per cent said they will invest more in digital marketing to reach broader audiences.

“As Australian entrepreneurs navigate the current economic climate ahead of the holiday season, it is crucial that they not only deepen their engagement on social media – where their customers spend significant time – but also remain agile in responding to growing price sensitivities,” said Shaun Broughton, Apac MD of Shopify.

“Black Friday/Cyber Monday and the broader holiday season present a valuable opportunity for businesses to explore new initiatives and strategies that can maximise reach and help them stand out,” Broughton added.

Shopify previously conducted an online survey among 13,337 standard merchants across multiple countries, including over 800 from Australia.