Rolling into Q4 when you run an ecommerce platform can be an exciting time while simultaneously a nerve-wracking moment. Black Friday sales have worked their way across the pond, infiltrating businesses globally with an event which previously was only conducted by US based retailers. With the fast-moving landscape of ecommerce, each year we observe various sales between Black Friday and mid-January, with discounts cropping up throughout the holiday season and the highly anticipated January sales. But how do you know that it’s right for you to discount your wares hoping for a landslide of conversions? We’re here to discuss the pros and cons of holiday sales to help you make an informed decision for your business.
Why should my business have a holiday sale?
- Increased marketing exposure
- Convert abandoned carts
- Incite return custom
- Reach new customer demographics
- Revenue boost during peak season
- Capturing a ‘ready to buy’ market
- Capitalising on increased buyer intent
Above are some reasons why it may be a good idea for your business to have a holiday sale. At a time of year when many are looking to increase their number of purchases through holiday gifts, you can reach new customers who either previously couldn’t afford your items or wouldn’t necessarily purchase your products for themselves. Reaching into these new demographics can increase your number of conversions and be an introduction to customers who previously were a little more ‘on-the-fence’ with buying from yourselves. Having a sale allows for huge marketing potential – think paid social media ads, email marketing increase, PPC ads, and even advertisement within printed media amongst many others. You’ll have something out of the ordinary for your business to shout about, and it is your opportunity to shout loudly.
Why should my business not have a holiday sale?
- Increased competition
- Expensive running costs
- Reducing profit on items which are guaranteed sales
- Increased stress on supply
- Increased stress on shipping & packing
- Raising potential for customer service queries and issues
If your business has never conducted a holiday sale, you may not be able to accurately predict how successful this sale could be. If you buy stock ahead of time, you risk having under-sold items sitting around consuming valuable warehousing space. Alternatively, you could sell out too fast, leading to a disgruntled customer base, last-minute scrambles for your supply chain and an increase in customer service contact. You need to have a figure in mind, judging from any previous sales and market statistics, of how you company will perform financially and logistically with a sale so that you can prepare – and anticipate any potential pitfalls. At a time when all brands are shouting loudly of their own sales, you need to make your voice heard. Otherwise, you risk being drowned out by the bigger waves other businesses are making.
Are Black Friday sales still popular?
There has been a significant and steady increase in Black Friday sales in recent years. Not only are the number of businesses partaking in this sale event increasing, the figures clearly show that there is ongoing demand from the consumer. Have a look at the below graph, depicting data from Zippia. Remember, the value shown is in BILLIONS of US dollars!
Covid purchasing likely influenced the figures here, although you can still see that prior to 2020 there was a dramatic increase in dollars spent. The landscape for Black Friday sales has proven history of popularity, and we’re expecting this upward trend to continue for many years to come.
How do I choose the right sale offer?
Whether you’re planning to break through with Black Friday sales, are waiting for the ‘last minute’ Christmas shoppers in December, or would even rather wait until January – you need to make sure that you are picking the right deal for your business.
There are several ways to host a sale:
- Buy One Get One Free
- Free Shipping Weekend
- Spend $minimum, get x% off your order
- Predefined X% voucher codes sitewide
- Subscriber only sale
- ‘Spin the wheel’ discount – you may have seen these increasing in popularity!
A good way to hook users into believing in your sale is to engage them a little. Ideas such as subscriber only sales, raffle or ‘spin the wheel’ style sales help the customer to feel rewarded. By offering a personalised discount, the customer feels although their support of your business is not going by unnoticed. Although you’re limiting who you offer this deal to, you’re offering to an already interested market.
Did you know? Return customers spend an average of 33% more per transaction than new customers. Why? They already believe in your brand, trust that they’ll get their goods (as described) and already have a social relationship with you. Find some more statistics here, if you’re thinking about rewarding your existing customers.
To choose your ideal style of sale, take stock of your operations. How much stock do you have to hand? Are there any items that you’re looking to sell off? How can your operation team manage picking and packing additional, free items? How will your shipping costs be affected? What is the highest discount % or value that you can offer without doing your business a disservice?
How do Taopix help with this decision?
We encourage all of our Taopix customers to review opportunity for an increase in conversions, even if that means a temporary reduction on product pricing or the addition of a freebie. By working with Taopix, you’re not only gaining access to market leading personalisation software, you’re also investing in multi-faceted business support with your best interests in mind.
Preview our demo site to see how your ecommerce could be transformed through the intuitive addition of personalised gifts.