Amazon dominates holiday gift search

Amazon has emerged as the dominant online platform for UK holiday shoppers, with over half (52 percent) turning to it for festive gift inspiration, surpassing Google, which attracted only 31 percent of shoppers, according to recent research by Nosto.

Generative AI tools like ChatGPT are quickly gaining relevance, with 8 percent of UK consumers using them to spark gift ideas, a surprising development in the traditionally search-engine-driven shopping landscape. Meanwhile, eBay (21 percent), Instagram (17 percent), and TikTok (15 percent) are becoming popular secondary platforms for holiday inspiration, reflecting a growing trend toward diversified online engagement as consumers seek unique and accessible holiday purchases.

The data also highlights cautious spending patterns among UK consumers this holiday season. While only 13 percent intend to increase their holiday budgets compared to last year, around half are planning to keep spending steady, and 44 percent say the rising cost of living is impacting their ability to splurge on festive goods. To save money, 77 percent are adopting strategic shopping habits, including price comparisons across multiple sites (25 percent), sourcing low-cost items from Chinese marketplaces like Temu and AliExpress (19 percent), and waiting for post-holiday discounts before making additional purchases. Budget-conscious shoppers are also willing to forego online retailers that don’t offer free returns, with 34 percent indicating a preference for stores with favorable return policies.

Interestingly, UK shoppers are increasingly turning to secondhand options, with 22 percent planning to buy more pre-owned gifts this year, citing both sustainability and cost-savings as primary motivators. Platforms like Depop and Vinted have gained traction as consumers seek affordable yet meaningful presents. Alongside this, nearly a quarter of respondents (23 percent) report an intention to save by spending less on themselves, while 27 percent plan to set gift budgets with friends and family, underscoring a more thoughtful, restrained approach to holiday spending. The report also notes a strong commitment to pet gifts, with a significant portion (27 percent) unwilling to skimp on holiday purchases for their furry companions, revealing a mix of sentiment and pragmatism in the UK consumer mindset.

For online retailers, the findings signal the importance of optimizing user experience, with features like high-quality search functionality and visual user-generated content now deemed essential for driving engagement. Sixty-six percent of UK consumers cited effective search tools as crucial, while 61 percent valued customer photos and reviews, which help build trust and aid decision-making. Phil Gregory, Nosto’s Regional Head of Customer Experience, advises retailers to tap into these insights by personalizing the shopping journey and accommodating diverse spending patterns, including a growing interest in secondhand goods and post-holiday sales. By prioritizing value and sustainability, retailers have an opportunity to attract and retain loyal customers during an economically uncertain season.