As Consumers Tighten Belts, Product Cost Is Top of Mind

Jungle Scout’s latest consumer research showed that prices are the primary factor influencing consumer purchasing decisions — especially on Amazon — as inflation continues to impact household spending.

Global Consumer Stress Levels Surge Amid Political Uncertainty, Kearney Report Finds

The quarterly study of 1,000 U.S. consumers revealed that more than 70 percent of respondents said they are prioritizing price points when making their purchases.

Other findings showed that while Amazon remains the top starting point for more than half of online product searches, the e-commerce landscape is evolving. TikTok’s influence is surging, as one in three shoppers polled said they are browsing TikTok Shop weekly and close to a quarter of those polled are buying. The data also showed that Generation Z and Millennials lead the charge in using TikTok.

Regarding purchasing amounts, consumers are clearly pulling back. “The majority of consumers (52 percent) say they’re spending about the same amount in the first quarter of 2024 as they did in the fourth quarter of last year,” authors of the report said. “This deviates from the past three years, where the percentage of consumers reporting similar spending in Q1 compared to Q4 was lower. This could be attributed to the fact that, in 2023, consumers reported cutting back on holiday spending by shopping earlier, buying fewer gifts, and using other money-saving strategies.”

Bolt Partners With LuisaViaRoma to Enhance Checkout Experience for U.S. Shoppers

The survey also showed that the percentage of consumers who reported their spending increased in the first quarter of 2024 (16 percent) “also deviates from previous trends; it is the lowest it has been in three years,” the report stated.

The report also showed that technology is helping to reshape the retail experience. The report found there’s an increasing use of augmented reality tools, such as Amazon’s “View in Your Room,” which has converted one-third of users into buyers. This indicates a growing preference for more immersive shopping experiences that bridge the gap between online and in-store shopping.

Researchers at Jungle Scout also crunched the number of categories that experienced the greatest year-over-year sales gains as well as declines. Here’s what the researchers found:

Holiday Season Blind Spots Revealed in First Insight Report