Data compiled by Fiverr showed that small-to-medium sized retail and e-commerce businesses are largely optimistic about upcoming sales, despite looming challenges due to inflation and a recession.
A nationwide survey of 505 business owners and executives was done to identify the tactics businesses are using to stay competitive and reach expectations of sales performance compared to last year.
“The data shows businesses are shifting their strategy, preparing early and prioritizing marketing channels that will keep them competitive in the current market,” Gail Arnon, chief marketing officer of Fiverr, said in a press release.
Those surveyed said the holiday season is of added importance this year. Sixty-four percent of the business leaders polled started planning one to three months earlier this year, compared to 2021.
Nearly 90% of the business leaders polled believe they’ll make the same amount or more this holiday season than they did last year, and half believe this holiday season will impact this year’s overall business outlook more than previous years.
Social media is the most popular method of advertising. All of small-to-medium and e-commerce businesses surveyed "plan to reduce their investment in some form of marketing or advertising compared to last year,” according to the data. But nearly 90% said they have no plans to cut back ad spending on social media during this holiday season, and 41% plan to spend more money in this category.
The potential negative impact of inflation, supply chain disruptions, rising interest rates and a lurking recession are not lost on business leaders. According to Fiverr, one in three surveyed labeled the economic downturn and inflation’s impact on sales among their greatest challenges. An estimated 43% are concerned about supply chain disruptions and inventory shortages during the holiday season.
Fiverr International conducted the survey in partnership with Censuswide.
"Whether it's web design, social media ads or SEO (search engine optimization), Fiverr aims to provide talent resources that allow small-to-medium businesses to adapt quickly and remain competitive this holiday season amid an uncertain economy,” Arnon said in a press release.