eBay: A Quarter Of Brits Plan To Spend Less This Christmas

• ^[1]37% of shoppers also say online advertisements during the holidays influence their purchase decisions, helping them find what they’re looking for and spark discovery.
• 1 in 4 will be spending less on Christmas this year, while 15% have already started shopping to spread the cost
• 17% of consumers who celebrate Christmas will be gifting pre-loved items this Christmas in efforts to be more thoughtful, sustainable and cut costs

Shoppers are increasingly focused on value for money and smart spending this season, with nearly 1 in 4 planning to reduce their holiday expenditures, according to new research from eBay Advertising.

The survey of 2,006 UK consumers who celebrate Christmas found that 17% will opt for pre-loved gifts this year rather than buying new items, as a means of reducing the environmental impact.

Of those planning to shop for pre-loved items, 81% say this is to save money - though consumers are also choosing pre-loved as a way to be more sustainable (68%) and to give unique and thoughtful gifts (67%). They are most likely to choose pre-loved gifts such as clothing (60%), jewellery (38%), computers/tablets (22%), or even garden and patio furniture (14%).

As inflation prompts people to tighten their purse strings, UK consumers are not only planning to spend less this Christmas, but also spread the cost throughout the year. ^[2]25% say they intend to spend less on shopping and celebrations this year, after spending an average of £625.57 in 2023. 28% also say they will be starting their Christmas shopping and preparations earlier this year than last - with 15% who say they have already started - in efforts to keep spending manageable in the run-up to the festive period.  

Value for money and product quality are also considered to be more important for shoppers this year when deciding where and what to spend. 58% of Brits say good value for money is their biggest priority for Christmas shopping this year, increasing from 51% in 2023, while 42% say the quality of the products they buy is their biggest priority, increasing from 31% in 2023.

Generational behaviour split 

The survey findings highlighted notable differences in purchasing behaviour across generations during the holiday season. Younger shoppers (aged 16-24) were more likely to shop for second-hand, pre-loved or refurbished items, with a particular focus on clothing. In contrast, older generations (aged 45-54) still showed significant interest in pre-loved items, but with a greater focus on categories such as garden furniture and electronic devices.^[3] 66% of 16-24 year olds show a stronger preference for jewellery vs 31% within the 45-54 year olds age bracket. Among all age groups clothing was the most preferred type of gift.

Highlighting these generational distinctions. 16–24-year-olds expressed a stronger preference for jewellery with 66% selecting it as a gift compared to only 31% of those aged 45-54. However, across all age groups, clothing emerged as the most preferred type of gift.

Interestingly, the appeal of Black Friday appears to be waning among younger shoppers. While 25% of this group reported doing much of their Christmas shopping during Black Friday in 2023, that figure has dropped to just 16% in 2024. This trend suggests that sellers may need to adjust their strategies to maintain momentum as the holiday season approaches.

Advertising driving the holiday spend

The research also reveals a notable increase in the influence of online advertisements this year, with 37% of shoppers surveyed stating that these ads impact their holiday purchase decisions. This marks a 3% rise from last year’s figure of 34%, demonstrating how online ads are becoming increasingly effective in helping consumers find what they’re looking for and discover new products. 

Diving into the findings in more detail, it’s clear that the younger age groups in particular are more likely to be swayed by online ads, with over half (58%) of 25–34-year-olds say they are influenced by online ads when it comes to buying festive gifts and 56% of 16–24-year-olds saying the same thing.

Additionally, nearly half (49%) of consumers said sales and promotions are likely to influence their spending this Christmas, as they consider promoted and sponsored listings to be from quality sellers. Specifically, 56% of 25-34 year olds and 56% of 35-40 year olds stated that sales and promotions could influence their purchases when shopping online this Christmas.

Billy Mills, Sr Director, Global Advertising at eBay commented: “While Christmas is still a few months away, many shoppers are already looking to get ahead, planning their spending in advance, spreading the cost where they can and searching for the right deals. A growing number are also considering gifting pre-loved items to save money and be more sustainable. This creates a clear opportunity for retailers to begin engaging with potential customers now, helping them to discover unique, thoughtful and high value products before the holiday rush.

“Research and marketplace insights show that by using the right tools and strategies, sellers and brands  can help boost their visibility and drive customer engagement early on. Advertising can allow them to enhance product discovery and increase sales well before key peak season events like Black Friday and Christmas, leading to consistent growth throughout the season and ensuring that they can secure their share of the festive spend.”

[1] Combines ‘Somewhat - I am open-minded and advertisements help spark discovery’ and ‘A lot - I rely on advertisements, as they help me find exactly what I am looking for’ 

[2] Combines ‘Significantly less’ and ‘Slightly less’ options

[3] *Those who are likely to ‘Shop for second hand / pre-loved / refurbished items, rather than new’

Source : eBay Ads UK

Image : freestocksdotorg / Pexels / 749354

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