Report: 1 in 4 Americans Will Spend Less This Holiday Season Than Last Year

Jungle Scout, the leading all-in-one platform for selling on Amazon, released a new report exploring how U.S. consumers’ spending has changed in 2020, and how many Americans are cutting back holiday spending due to the COVID-19 pandemic, Presidential election results, and more.

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Jungle Scout’s Q4 Consumer Trends Report key insights include:

1. The critical end-of-year shopping season is more precarious than ever.

  • 1 in 4 Americans will spend less on holiday shopping this year than they spent in 2019.
  • 32% of Donald Trump-voting consumers will reduce holiday spending because Joe Biden won the U.S. Presidential election.
  • 23% of Americans plan to reduce their 2020 holiday spending in the absence of a stimulus check.

2. Half of consumers have reduced their overall spending.

  • 46% of consumers say their overall spending decreased further throughout Q3 (July-September) after already reducing spending in the first half of 2020.
  • 1 in 3 Americans will decrease overall spending through the end of the year.

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3. Ecommerce is surging during the 2020 COVID-19 pandemic — and Amazon is dominating.

  • 34% of consumers increased their online spending in Q3 (even while reducing overall spending).
  • 70% of consumers shopped on Amazon in Q3 — compared to 35% who shopped on Walmart.com and 26% on Target.com.
  • 69% of consumers plan to shop on Black Friday and Cyber Monday — but the majority will shop online instead of in stores.

“This time of year is normally a boon to retailers as consumers spend on gifts, celebrations, and other splurges — but 2020 is not a normal year,” said Jungle Scout Founder & CEO Greg Mercer. “Americans are uncertain about the economy due to the COVID-19 pandemic and a change in political leadership. Will they keep their jobs? Get a stimulus check? Consumers are responding by tightening their wallets, and when they do spend, they shop online from the safety of their homes, leaving some retailers in a good spot this season, and others worried.”

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