An e-commerce industry has been growing rapidly in the last few years. Online retail sales are expected to generate about $653 billion in 2018 worldwide, but that’s just the beginning. E-commerce has barely surpassed the 10% retail share in the US, so the figure is expected to grow by nearly 15% each year.
In such circumstances, online retail is the path to take in the coming years for every serious business. But you need to know that e-commerce has its ups and downs throughout the year. There are months when sales are decreasing, but there are also months when digital sellers are able to gain a huge profit.
According to the report, November and December drive 30% more e-commerce revenue than non-holiday months. As a business owner, we strongly encourage you to take advantage of this fact and drive more conversions in the festive time of the year.
This post will explain to you why seasonal sales are great for e-commerce business, so keep reading to learn how to prepare for it. Let’s take a look!
7 Things That Make Holiday Sales Great for Online Retailers
Before we begin describing the benefits of joining the holiday sales frenzy, we have to remind you to think twice about this process. Namely, customers expect you to offer significant discounts and you can’t stay competitive with regular 5% to 10% price reductions. On the contrary, discounts usually go well above 30%.
This is the reason to ask yourself one simple question: Can I really handle it? Is my company ready to give up a big portion of the margin? You better answer those questions accurately before taking part in the seasonal sales madness.
Smaller companies might be better off without it on some occasions, focusing more on the low-season activities. But if you believe holiday sales are a thing to do, then you need to understand the seven most important benefits that make it so good:
1. Boost sales
The first thing that makes seasonal sales great is very obvious – it helps businesses to drive conversions and generate extra profit. Last year, online transactions on Cyber Monday reached a record $6.59 billion, which is a huge result for the one-day project.
But if you want to grab a piece of this cake, you better make sure to plan everything well in advance:
- Inventory: You must maximize supplies, but don’t risk overstocking. It takes a thorough analysis to calculate the exact holiday season demand.
- Logistics: Online retail depends on the quality of the third-party logistics. However, you need to keep the partner informed about all your plans and give them enough time to prepare for the delivery boost.
- Workforce: Needless to say, the entire team has to stay alert and monitor the situation to answer possible user inquiries and avoid logistics-related problems.
2. Clear out excess inventory
The holiday season begins in late October and lasts for over two months. This is more than enough time to clear out excess inventory and get rid of the slow-moving supplies. Keep in mind, however, that you must offer real discounts to make the plan work.
Don’t play with marketing tricks such as increasing product prices just to make the discount look bigger. On the contrary, you should keep the same price and then apply a 40% or 50% discount. That way, you won’t have to worry about the success of your holiday campaign.
Additionally, we suggest you create a festive calendar to ensure precise scheduling. There are all sorts of celebrations out there – from Halloween and Thanksgiving to Christmas and New Year’s Eve – and you don’t want to forget a single opportunity to sell excess items.
3. Anticipation building
Seasonal sales are repetitive and users can’t wait to enter yet another marvelous shopping experience. At the same time, holiday-induced emotions make the consumer journey even more exciting, which is a win-win situation both for the e-commerce companies and their customers. This is your chance to exploit the power of emotions and build a stronger relationship with the target group. Doing so, you are not only getting a one-time benefit but also expanding the base of loyal consumers in the long-term perspective.
4. Raise brand awareness
Seasonal sales can help you raise brand awareness by using a variety of different promotion channels. First of all, it shows that you are not a passive e-commerce company, but rather a proactive business that takes care of its customers.
Secondly, holiday seasons often encourage non-regular buyers to test your products cheaply. In other words, you could be attracting a lot of new consumers with discounts. Besides that, major online retail platforms like Amazon will probably display your company’s name among sellers who give lucrative offers at a given timeframe.
If you combine it with high-quality website content, social media marketing, and paid Google searches, you can drastically increase the odds of getting noticed by fresh prospects who are ready to test the new brand.
5. Launch a loyalty program
Most companies launch loyalty programs during low-season, but you can also try to win over new customers by combining holiday sales with this type of marketing campaign. After all, why would you stick to the discounts exclusively? Loyalty programs represent yet another incentive that can boost user interest and attract more buyers.
The mechanism is very simple: a customer has to sign in, buy your product, earn some points, and use them the next time he or she conducts the purchase. Once again, it’s a tactic that focuses on recurring consumers because they need to come back and make another purchase in order to utilize the loyalty program benefits. If you are able to do this, it means that people are partial to your products and are likely to come back for more time and again.
6. Sell promo packages
Crafting promo packages is another way to increase sales during high-season. It’s a special holiday offer that includes a set of different but closely related products. This is not only the opportunity to freshen up the brand by creating an attractive promo packs, but also the chance to drive more conversions.
Buying in bulks, your customers can save even more money than using the single-product discount. For instance, a company selling body lotion can combine it with a few other products such as Magnesium oil, anti-leg cramps foam, natural hydration powders, or any other similar item. It’s a great way to cross-promote your products while offering a tangible discount to the consumers.
7. Create your own holiday
Here is one last tip for you – don’t wait for the holiday season to come to you, but try to create your own holiday instead. For example, you can celebrate the company’s birthday and use it as an excuse to launch a promo campaign.
Use all of your marketing tools and tactics to announce the event, from social accounts to blogs and paid advertising. Let it be your special thing that doesn’t only attract new purchasers, but also helps you to stand out from the bunch of e-commerce competitors.
E-commerce is a growing business that generates enormous spending all over the globe. However, the industry has its ups and downs, so it’s making the highest profit in the festive time of the year – November and December in particular.
In this article, we explained to you what makes seasonal sales so beneficial for e-commerce companies and how to take advantage of this period of the year. Use our suggestions to prepare for the holiday season – it will help you to raise brand awareness and drive more sales eventually.
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