As the holiday shopping season nears, small businesses prepare for a potentially transformative period, guided by key trends from Shopify’s 2025 Global Holiday Retail Report that could shape their year-end sales success. With 26% of consumers beginning holiday shopping by late September, timely and effective marketing is essential. Shoppers are expected to spend more this year—an average increase of $37 for Black Friday Cyber Monday (BFCM), raising planned spending to $192. Yet, consumers remain budget-conscious: 51% plan to set spending limits, and 23% intend to stick to stricter budgets. This focus on value urges small businesses to highlight beneficial offers. For example, Blume leverages bundled products to enhance perceived value, while MeUndies launches early promotions with discounts up to 50% to attract early buyers. The report recommends discounts, gifts with purchase, and bundle deals as key strategies to engage holiday shoppers. Small retailers can tailor promotions to appeal to these budget-aware consumers effectively. AI technology is reshaping the shopping experience, with 64% of consumers—and 84% of younger buyers—planning to use AI tools this season. Businesses stand to gain by employing AI-powered discovery solutions; 90% of enterprises have adopted such tools. For smaller merchants, Shopify’s Sidekick offers an intuitive AI assistant to create personalized marketing strategies, boosting conversion rates through customized shopping experiences. Convenience remains a priority, as nearly half of shoppers plan to browse and buy in-store—up from last year.

A hybrid approach combining online and physical shopping benefits brands like Glossier, which offers online purchase with in-store pickup, fostering a seamless and loyal customer experience. Nevertheless, challenges persist. Almost 48% of shoppers abandon carts due to complicated checkout processes, highlighting the need for streamlined online transactions. Thus, businesses must both attract customers with appealing products and pricing and ensure a smooth purchasing journey. Authenticity also plays a significant role: over 25% of consumers prefer supporting values-driven businesses, and 30% favor local options. Building an authentic brand can drive long-term loyalty. For instance, Little Sleepies enhances trust with perks like free shipping and returns on domestic orders over $25, improving customer satisfaction and reflecting brand values. As this unique holiday season approaches, leveraging technology alongside strong, value-aligned branding is vital for small businesses to engage consumers successfully. Focusing on value, personalization, and authenticity offers an opportunity to maximize holiday sales potential. These insights carry considerable weight for small merchants navigating the shifting retail landscape. Shopify’s report provides critical guidance for those aiming to thrive amid evolving consumer expectations. For more information and practical recommendations, refer to Shopify’s full 2025 Global Holiday Retail Report.