The new year is just around the corner, and it’s a great time for retailers to take stock of what worked and what didn’t in 2023 and stay informed on what consumers will expect in 2024.

Holiday retail sales will grow by approximately 4.5% in 2023, a slight increase from the previous year’s 3.9% growth, according to our June forecast. While this growth may not seem significant, it would represent the sixth-fastest growth rate in holiday sales in the past 15 years, according to our forecast.

Brands must balance personalization with privacy considerations and ensure product pages are comprehensive and complete. Lower-funnel ad tactics and easily accessible shipping and returns info also help to encourage purchases. Here are four strategies to boost online conversion rates.

Holiday retail sales will grow 4.5% to reach $1.317 trillion this year, according to our forecast. Retailers who want to carve out a share of that spend will need strong promotional strategies and a seamless digital-physical experience. It’s also not a bad idea to have a plan ready for when the returns start rolling in.

The top two reasons shoppers worldwide buy directly from brands are a better price (53%) and free delivery (49%), followed by fast and convenient delivery and free returns (both 36%), according to Wunderman Thompson.

Most consumers use online marketplaces to find products, but the number who are browsing in-store or on social media is growing. Retailer websites are where customers go for product research. And when it comes to purchasing, price and delivery options are the most important factors.

Free returns are becoming more elusive: Retailers are turning to final sales more often to get rid of unwanted inventory and eliminate the possibility of returns.

Private label products give retailers more control over sourcing, manufacturing, and pricing, which they can use to offer items for lower costs, encouraging consumers to try new products, leading to lifelong brand ambassadors who will swear by your brand. Here’s how Target, Walmart, and Costco are labeling up.

This year, furniture and home furnishings will make up a $179.75 billion ecommerce market in the US, according to our forecast, and growth is accelerating. With challenges coming from big names like Amazon and Walmart and resale platforms like Facebook Marketplace and Craigslist, Ikea has no choice but to innovate to keep up.

Target offers a year-long return policy for its private labels: That’s a very different approach from most retailers, which have made steps to clamp down on returns.

While retail as a whole is looking for ways to deploy generative AI to support operations and enhance customer experience, fashion ecommerce is likely to see some of the biggest impacts.

Total US retail return volume will reach $627.34 billion this year, a 2.2% increase YoY, according to our forecast. Some retailers are turning to return fees to make up for increased costs, but that’s a risky move that may end up alienating customers. Here are three alternatives to return fees, ranging from the short term (building out product descriptions and customer reviews) to the long term (creating a returns as a service offering).

“Everybody’s talking about generative AI,” said our analyst Suzy Davidkhanian. “The underlying question is, will it last? Or will it be the next metaverse?” (Spoiler alert: She thinks it’s here to stay.) Davidkhanian shares her thoughts on some of the overarching trends from this week’s event.

After two years of outsized growth, ecommerce returns dipped by 2.5% year over year per our estimates, and we now expect ecommerce return rates to approach pre-pandemic levels by 2026

At least 10% of US ecommerce orders were returned each week from last November through mid-January, according to Salesforce. The return rate was as high as 16% in some weeks, a significant increase over the previous holiday season.

Deal-seeking by consumers, heavy discounting from retailers, and a longer holiday shopping season drove an uptick in returns during the 2022 holiday season. Retailers will need to plan their promotional calendars carefully to manage returns in 2023.

As Gen Zers’ buying power grows, retailers need to understand the best ways to connect and engage with them, whether that’s through leaning into product discovery or creating a more seamless payment process. We take a look at some of Gen Z’s shopping habits and what they mean for retailers.

Online purchases will account for a growing share of total US retail returns.

Generous returns policies have encouraged shoppers to buy online, but an unsustainable wave of returned goods is forcing retailers to rethink their strategies.

Returns have always been expensive for retailers, but right now they’re at an all-time high. “We’re seeing a lot of the fast-fashion retailers like Zara and others like J.Crew, and Abercrombie & Fitch starting to charge return shipping for online orders,” said our analyst Sky Canaves. But there’s more to it than charging. Here are six strategies for reducing returns.