Holiday Shoppers Turn to Chinese Marketplaces and AI for Savings

In partnership with

Find Best Apps for eCommerce || Newsletter

Chinese Marketplaces Attract Holiday Shoppers, But Trust Remains Low

Dive Brief:

As shoppers hunt for bargains this holiday season, over a third (36%) are turning to Chinese marketplaces, according to a survey of 1,000 American consumers conducted by marketing tech firm Omnisend.

Nearly half (48%) of Gen Z consumers are shopping on Chinese marketplaces this holiday season.

Temu is the top choice, preferred by 23% of U.S. shoppers, followed by Shein (18.3%), TikTok Shop (11.9%), and AliExpress (7.3%), the survey found.

Dive Insight:

The competition between e-commerce giants like Amazon, TikTok Shop, Temu, and Shein is heating up as they vie for shoppers seeking savings this holiday season. In a recent survey by Probolsky Research, four in ten respondents said that Temu’s prices were significantly lower than Amazon’s.

To counter the rise of ultra-cheap marketplaces, Amazon recently launched “Amazon Haul,” a section of its app and website featuring products under $20, with many items priced under $10, and some as low as $1.

Greg Zakowicz, Omnisend’s senior e-commerce expert, noted, "Chinese marketplaces like Temu have gained significant traction among American consumers in recent months. Amazon’s response with Amazon Haul is an attempt to compete, but small businesses are facing increasing pressure. The price points and variety offered by platforms like Temu and Shein are hard to match."

Despite their appealing prices, U.S. consumers remain hesitant to trust these Chinese marketplaces. An Omnisend survey found that while 86% of American consumers trust Amazon, only 6% expressed trust in Temu.

Zakowicz added, "Even though trust remains low for platforms like Temu, the promise of savings continues to attract budget-conscious shoppers."

Additionally, a recent report from Earnest Analytics showed significant overlap in customer bases, with 28% of Shein shoppers also purchasing items from TikTok Shop, and 25% of Temu customers doing the same.

With nearly 40% of Americans planning to spend less on gifts this year, Omnisend’s survey indicates that Gen Z shoppers, in particular, are flocking to Chinese online marketplaces to stretch their holiday budgets. Nearly a quarter (23%) of Gen Z consumers plan to spend between $101 and $300 on gifts, while almost 19% expect to spend between $51 and $100. Similarly, over 20% of millennials and 18.3% of Gen Xers have budgeted between $101 and $300, with about 15% of both cohorts planning to spend between $300 and $500.

Automate your meeting notes

• Condense 1-hour meetings into one-page recaps

• Say goodbye to post-meeting data entry

• Claim 90 days of unlimited AI notes today

Get started free

AI’s Growing Influence on Holiday Shopping

Dive Brief:

As more retailers incorporate AI into the shopping experience, it is projected to drive over $200 billion in holiday sales, marking a 12% increase from last year, according to a Salesforce analysis.

Since Cyber Monday, the use of generative AI and virtual agents by retailers has grown by 23% week over week, Salesforce reports.

Global online sales from November 1 to December 15 have already reached $849 billion, representing a 4% year-over-year increase.

Dive Insight:

Salesforce’s report highlights the growing role of AI in the retail industry, from product recommendations to customer service. Since the beginning of November, AI has influenced 19% of international orders through tailored promotions, product recommendations, and order support. Retailers that have implemented AI during the holiday season saw a 38% engagement rate, compared to just 21% for those without AI.

Caila Schwartz, director of consumer insights and strategy at Salesforce, commented, "As retailers capitalize on the final spending surge, AI agents are becoming invaluable. By handling customer inquiries, order issues, and personalized recommendations, these AI tools are making last-minute shopping feel effortless, ensuring retailers capture a larger share of the holiday market."

Despite the growing presence of AI, some research indicates that consumer trust is still a barrier to greater adoption. A report from Perfect Corp. found that 26% of shoppers turn to AI-powered virtual assistants for help, 23% use virtual try-on technology, and 23% seek personalized product search options.

While nearly half (48%) of consumers remain hesitant to use generative AI, 52% say they either already use AI tools or plan to in the future. A survey from Bain revealed that the primary reason shoppers aren't using generative AI is that they are satisfied with their current shopping habits.

To meet this demand, many retailers are enhancing their offerings with AI-driven tools. This month, Target launched the Bullseye Gift Finder, a generative AI tool that recommends products, and its new AI-powered Shopping Assistant, a chatbot designed to provide personalized product suggestions and answer customer queries. Similarly, Nordstrom has revamped its mobile app to incorporate generative AI, streamlining the holiday shopping experience.