Amazon, Costco, Target, Walmart, and other retailers often start their holiday promotions in October.

However, when you see Christmas decorations appearing in the shopping section, there's no need to rush out and buy the woolen scarves, plush blankets, and other holiday gifts on your list right away.

As a finance professor who studies how individuals and businesses make financial decisions, I can explain why the holiday shopping season starts so early: it helps retailers attract more customers, and at the same time, it allows consumers who are tight on money to spread their expenses over multiple pay cycles. For those with more flexible budgets, buying gifts in advance also avoids the stress that comes with last-minute holiday shopping.

Why do retailers start so early?

It is estimated that between the end of 2026 and January 2027, Americans will spend between $1 trillion and $1.7 trillion on holiday gifts, decorations, and other items.

A survey on holiday spending by Bank of America shows that approximately 29% of Americans plan to spend their portion of the expenses from early to mid-December during this year's holiday season, while 17% will shop on Black Friday after Thanksgiving.

But many people prefer to buy holiday gifts in advance, starting before Halloween. Some do so out of necessity: if they don't spread the cost over multiple pay cycles, they can't afford to give all the gifts they want to.

For others, it's more of a preference. A survey in 2025 showed that about 54% of those who shop in advance stated that they prefer to manage their budgets gradually. Additionally, 41% said they buy gifts in advance to avoid the stress associated with shopping around holidays.

Retailers are also adjusting their strategies, starting holiday sales earlier and promoting seasonal products more aggressively. By offering discounts a few months before the gift-giving season begins, they can encourage more people to join the "buy early" trend.

Moreover, if they launch a promotion in October, they might lock in sales that would otherwise flow to their competitors at the end of the quarter.

A longer sales season also brings other benefits to retailers. It can alleviate pressures on the supply chain and logistics, as they are able to receive seasonal orders over a period of three months rather than just one or two months. This reduces transportation difficulties and lowers indirect warehousing costs.

Stretching the time for clearing seasonal inventory also gives retailers more opportunities to sell these products. However, an earlier shopping season may not necessarily increase overall consumer spending. Some purchasing behaviors might simply shift from December to October.

Some pitfalls to be aware of when shopping in advance

To ensure that buying gifts well in advance of a holiday is a wise move, shoppers who plan to do so should carefully read the merchant's terms and conditions as well as study the return policy.

Many large retailers are tightening their return policies, shortening the time allowed for returns, and increasing the fees for returning or restocking products.

In some cases, the deadline for returning products you face may even be earlier than the arrival of the holidays. For example, Best Buy's extended return policy is only applicable to products purchased on or after October 30, 2026. Target also limits its holiday season return window to products purchased on or after November 1.

Amazon extended its holiday return policy in 2026. If you purchased goods between November 1st and December 31st, you can return them until January 31st, 2027; for Apple products, the return period is until January 15th. Anyone who bought gifts before this time is usually subject to the standard 30-day return policy, which ends well before Christmas arrives.

When is it more cost-effective to buy in advance?

It is wise to shop in advance when the cost of waiting may exceed the potential expense of spending money in advance.

For example, if a popular woolen scarf that was priced at $100 in October becomes out of stock on Amazon by November, then the supply has run out, but demand remains high. If you want to buy it for your mother and ensure it is delivered on time, you may have to look for it at other retailers. You might be able to find the scarf on a certain website, but the price has risen to $150. If you don't have enough time, you might also have to pay an additional $30 for expedited shipping, bringing the total cost to $180. Obviously, it would be more economical to buy it at a lower price in advance.

But this doesn't mean you have to rush and place an order a few weeks or even months before you're ready to put the gifts under the Christmas tree. First of all, make sure the price is within your expectations and within the range you're willing to pay.

You should also compare prices with several more stores to confirm whether other retailers are charging lower prices for the same or similar products.

Remember, delaying holiday shopping until the last minute can lead to unnecessary costs, such as extra shipping fees. The key is to have a budget, to know when prices are favorable, and also to know when it's time to stop shopping.

James Malm, Professor of Finance at Charleston College and Director of the Global Business Resources Center

This article is reprinted by The Conversation under the Creative Commons License. Please read the original text.