The 2025 holiday season is already shaping up to be one of the most competitive years for online sellers. Shopify recently released its 2025 Global Holiday Retail Report, and this report clearly shows that spending is up, expectations are higher, and the window to win customers is shifting. We gathered the most important takeaways so merchants can quickly understand the trends shaping buyer behavior, spending habits, AI adoption, and loyalty this season. If you want the concise version of the Shopify Holiday Retail Report, complete with numbers, this is the summary you’ll want to keep handy.
Holiday spending is up but shoppers are more strict
Shoppers are planning to spend more this year but they’re also being incredibly peaky.
- Planned spend jumped from $155 (2024) to $192 (2025) –> a $37 increase
- 51% of shoppers say they’ll set strict spending caps
- 23% will be even stricter with their budgets than last year
- 72% of businesses feel more optimistic about holiday sales compared to 2024
Even though spending is rising, it’s controlled spending. Shoppers want unmistakable value before they make a purchase.
💡 What this means for merchants:
Clear discounts, bundles, value-driven messaging, and transparent pricing matter more than ever.
Early shopping is growing but brands shouldn’t be late to the game
One of the biggest gaps Shopify highlights this year is timing.
- 26% of shoppers start holiday shopping before the end of September
- But only 13% of businesses run promotions before October
💡 What this means for merchants:
Start promos earlier, especially for high-spending households because 34-35% of higher-income shoppers started holiday shopping earlier compared to last year.
AI is also a part of holiday shopping now
Shoppers are already using AI in meaningful ways:
- 64% use AI to find better deals, get inspiration, and discover new products. Among ages 18-24, this jumps to 84%.
- 29% use AI primarily to find deals and 20% use it for inspiration or discovery.
- 28% of shoppers buy more from brands that provide personalized recommendations, with this figure increasing to 36% in the UK and 38% in the US.
On the business side:
- 88% of brands are investing in AI tools for assistance during the holiday season.
- Top priorities include AI-driven content and automated customer support.
💡 What this means for merchants:
Businesses can use AI tools for personalized recommendations, better support, smarter inventory planning and competitor analysis, as shoppers can benefit from it by comparing prices and better deals in automated ways.
Trust, speed, and seamless experiences play a big role in loyalty
Shoppers want convenience and credibility. This season, trust-building actions matter more than fancy promotions because simplicity talks.
Convenience leads loyalty this year:
- 46% want fast, simple shopping above everything else.
- 48% have abandoned a purchase in the last 12 months due to slow checkout,
Top loyalty drivers for shoppers:
- 49%: Discounts
- 41%: Free shipping/returns
- 29%: Loyalty programs
- 20%: Transparent updates on pricing, shipping, delays, etc
Final Takeaway for Merchants
1. Make value obvious
Clear discounts, bundles, transparency, and reliability matter to disciplined shoppers.
2. Use AI and connect your channels
Shoppers expect seamless experiences across online, in-store, social, and search.
3. Build loyalty through speed, trust, and visible values
Fast checkout, dependable fulfillment, and honest communication shape long-term relationships.
4. And never forget to track your competitors!
Every merchant must be aware of competitor actions before it’s too late, such as price changes and stock availability. During the BFCM season, offering dynamic prices will help you capture price-sensitive consumers by providing the best deals.
Check out the full report of Shopify from here!
