How discounts boost Christmas Sales

Discounts boost Christmas sales by creating a sense of urgency, attracting price-sensitive shoppers, and encouraging gift-giving and impulse purchases. Promotions like bundles, limited-time offers, and loyalty rewards are effective because customers are actively looking for good deals during the holiday season, making it a prime time for businesses to leverage special offers to increase revenue, build customer loyalty, and drive sales.

Christmas discounts in 2025 will likely include significant sales on various products, with some retailers offering up to 50-80% off. The best deals may be found during Black Friday and Cyber Monday, which are expected to offer savings on items like electronics, fashion, and home goods. However, there will also be specific Christmas-themed sales and promotions throughout December.

While specific discount percentages vary by retailer and product, a key trend for 2025 is that retailers are cautious about passing on higher costs, leading to expectations of a more value-driven holiday season with promotions being important. Consumers may also expect fewer discounts due to economic factors like tariffs, with some shoppers anticipating spending less on gifts or cutting back overall.

The 2025 holiday season is poised to be the first quarter trillion-dollar holiday season. Adobe forecasts a record $253.4B will be spent online this holiday season (Nov 1–Nov 23) up 5.3% year-on-year.

Mobile devices have cemented their dominance, as 2025 is poised to be the first full year mobile makes up more than 50% of online spend. Adobe forecasts mobile revenue share to hit a record 56.1% this holiday season, while 7 in 10 retail site visits will take place on mobile devices.

Buy now, pay later continues to be an important payment option for consumers this holiday season. Adobe forecasts $20.2B will be spent through the payment method this holiday (Nov 1–Dec 31, 2025), 11% growth over 2024.

AI is changing how consumers shop for holiday gifts. This holiday season, traffic from AI sources (LLMs) to retail sites is expected to rise 515–520% from the 2024 holidays.

For e-commerce sellers, Christmas and New Year mark the grand finale of the retail calendar, a season when festive emotions and purchase intent peak together. Once the Diwali rush settles, India’s online marketplace doesn’t slow down; it simply transforms its energy toward global celebrations that span late November through early January.

December carries a distinct rhythm, streets light up, digital carts fill faster, and shoppers begin searching for gifts, décor, and deals weeks before the holidays actually arrive. This blend of celebration and consumer excitement creates a fertile ground for online sellers to make their final revenue push of the year.

Christmas sales can help online sellers as shoppers stay in a festive buying mood, sellers leverage global events like Christmas and New Year to clear unsold Diwali inventory through deep discounts, boosting cash flow and freeing space for new-season stock.

Online festive sales are predicted to exceed ₹1.2 lakh crore, up about 27% from 2024.

To achieve these sales targets, retailers are likely offering high discounts to consumers. This includes deep discounts on products, free shipping, and bundled offers. Retailers are also using AI and analytics to quickly react to trends and personalize promotions to drive sales.

The increased competition and discounting by retailers will pressure suppliers to offer more favorable terms, such as lower prices or extended payment terms, to secure or maintain retail contracts.

While specific figures are not available, the significant increase in consumer discounts suggests a corresponding increase in costs for suppliers.

Holiday campaigns during Christmas and New Year help brands reach a wider audience when online traffic is at its peak. Festive discounts and gifting demand significantly increase order volumes and sales conversions.

Shoppers exploring deals and gifts online create an ideal opportunity for brands to attract and retain first-time buyers. The Christmas and New Year season continues to mark a major sales spike for online retailers worldwide. Here’s a quick snapshot of how shopping behavior and digital sales are evolving this festive season: Christmas sales in 2024 recorded a 20–25% increase, reflecting revived consumer confidence and higher discretionary spending.

Nearly 56% of Gen Z and 50% of Millennials now prefer to shop with AI-driven tools, from product recommendations to virtual try-ons, making personalization a key driver of conversion.

The Christmas and New Year season has become a defining period for India’s e-commerce growth, blending global shopping habits with local festive enthusiasm. Sellers who plan early, stock trending products, and tailor offers for mobile-first, value-driven shoppers will lead the way. As 2025–2026 unfolds, brands that combine smart strategy with festive storytelling will not only sell more but also build lasting customer loyalty.