Salesforce, a global leader in CRM, has predicted that digital sales for the 2021 holiday season will reach a record high of $1.2 trillion globally.
However, consumers, retailers, and suppliers, may face rising costs and decreased inventory due to pressure on the global supply chain.
The impact of the worldwide pandemic on digital shopping habits is expected to persist and although the rise in e-commerce may not compare to 2020’s historic 50% surge, total sales are expected to reach record rates for the upcoming festive season.
While Salesforce have predicted a 7% year-over-year overall growth in global digital commerce for November and December 2021 (slowing down from 50% year-over-year growth in 2020), manufacturing capacity, logistics costs, and labour shortages have become pressure points in the industry which is likely to cause higher retail prices.
On top of this, product availability is likely to decrease, replacing shipping delays as the season’s biggest spoiler, and digital commerce growth will be driven by a 20% rise in consumer prices despite fewer global (-2%) holiday orders expected.
Nevertheless, the rise in prices and costs remains unlikely to deter consumers from spending this festive season, the first that resembles relative normality in two years.