Nosto research: Amazon beats Google in festive gift search race as ChatGPT rapidly gains traction

Amazon remains the top destination for UK consumers who are seeking online inspiration for gifts and other festive purchases, with only 31% planning to use Google.

That’s according to research by Nosto, involving 1,000 Brits.

Generative AI tools like ChatGPT are rapidly gaining traction, with 8% turning to them for seasonal shopping ideas this year. Additionally, 21% will look to eBay for inspiration, 17% to Instagram and 15% to TikTok, while 19% will go directly to the websites of their favourite brands and retailers. 

Overall, the data suggests that only 13% of Brits will splash out more money this Christmas than last, with 50% aiming to spend about the same. 44% say the rising cost of living will impact their festive shopping budgets.     

22% are likely to buy more second-hand gifts than last year, with 22% also aiming to make seasonal online purchases across borders. Around 11% say sustainability/environmental concerns will influence their shopping this year. 

Curiously, some Brits say their festive spending will be impacted by the outcome of the US election, with 18% revealing they’ll be in the mood to buy more if the candidate they like gets voted in as President.

Of the 77% of UK consumers who plan to try and save on their seasonal shopping this year, 25% would try to compare prices on at least three online stores, while 19% will look for low cost purchases on Temu, AliExpress and other Chinese marketplaces.

21% will aim to shop online at stores with lower shipping charges or those that allow collect from store for free. 16% will buy pre-owned items if they can find good quality at low prices, while 14% admit that they will try to make savings by waiting to buy gifts in the post-Christmas sales.

23% will try to save by spending less on themselves than usual, while 27% will agree to set budgets with friends and family for gifts and not go over. But many Brits will still prioritise their furry friends, with 27% planning to buy gifts for their pets.

Paying for returns is a big bug-bear, with 34% of UK consumers revealing they will avoid buying gifts online from stores that don't offer free returns or allow goods to be returned to a physical store for free.

When respondents were asked which e-commerce website features are helpful when shopping for gifts or other festive purchases, a ‘really good search function that shows relevant products’ was mentioned by 66%, only just below product reviews and ratings (67%).

Seeing photos and videos of products from other customers who have purchased them (user-generated content) was rated as helpful by 61% of UK consumers and image search (which lets shoppers search for products using images rather than text) by 57%.

“Overall, the research paints a picture of a cautious festive shopping season in the UK with consumers continuing to feel the pinch from the rising cost-of-living,” says Phil Gregory, Nosto’s Regional Head of Customer Experience for the UK, IE & Nordics.

“As well as being price competitive, online retailers need to focus on optimising the shopping experience they provide - consumers really value features such as good on-site search functionality, on-site reviews and ratings and the availability of visual user-generated content from other shoppers.”

“A lot of shoppers said they’d visit their favourite online retailers or brands for inspiration, so it’s important to identify and treat returning customers with special care.”

“Retailers who can, should also take advantage of the variety of trends the data has highlighted - like the growing willingness to buy second-hand and to wait until after Christmas to buy gifts in the sales. And the fact that people are still willing to buy presents for their pets even if they’re watching their budgets.”