While some U.S. taxpayers are expected to save their refunds from Uncle Sam this year, many others will use the money to indulge themselves, reports the National Retail Federation.
According to the organization, 12.5 percent of shoppers will use tax refunds to make major purchases such as TVs, furniture and cars—up from 11 percent last year. Ten percent of consumers are expected to use their returns to go on vacations, and 28.8 percent are expected to spend their refunds on everyday expenses. This could prove beneficial for sellers, notes Tracy Mullin, the organization's president and CEO.
"A little bit of 'free money' will go a long way for Americans this year," she says. "Retailers planning special promotions over the next few months may find that shoppers are a bit more receptive to opening up their wallets than they have been for the past year."
About 40 percent of taxpayers will put their refunds into savings, the NRF reports. More than 60 percent of consumers have already filed and received their returns, the organization adds, but 24.4 percent are expected to file in March and 15 percent will file in April.
"After spending the last year paying down debt or building up a nest egg, Americans are relishing the idea of spending their tax returns," adds Phil Rist, executive vice president of strategic initiatives for BIGresearch. "Consumers focused solely on essential purchases during this economic downturn, and many are ready to treat themselves to something nice for a change."
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Auctiva staff writers constantly monitor trends and best practices of those selling on eBay and elsewhere online. They attend relevant training seminars and trade shows and regularly discuss the market with PowerSellers and other market experts.