BofA Securities is bullish on the e-commerce industry heading into the holiday season, predicting that consumers’ focus on value will drive a surge in online spending. Their 2025 annual e-commerce survey highlights key trends, including a preference for convenience, price comparison, and a shortened holiday shopping window after Thanksgiving.
The survey revealed that a majority of respondents (52%) expect to increase their online spending this year, up from 46% last year. However, the economic climate and uncertainty surrounding the upcoming Presidential election are prompting 62% of shoppers to prioritize lower prices.
BofA believes retailers offering consumables and value pricing, such as Walmart and Amazon, are best positioned to capture market share in this environment. Walmart remains the top choice for online grocery shopping, with 30% of respondents favoring the giant retailer. Meanwhile, Amazon boasts the highest spending intentions, with 45% of respondents planning to increase their Amazon usage over the next six months.
The survey also sheds light on the growing popularity of Temu, a subsidiary of PDD Holdings. While 67% of respondents reported using Temu, a significant increase from last year, only 20% intend to increase their usage, indicating potential room for growth.
Overall, BofA projects a healthy consumer online spending outlook for the holiday shopping season, anticipating a shift from discretionary categories towards consumables. The firm’s analysis suggests that Amazon (AMZN) and Walmart (WMT) are well-positioned to capitalize on the trend of value-conscious consumers seeking convenience and price comparison. The survey also highlights the rise of Temu (PDD) as a potential player in the e-commerce landscape.
