Black Friday, the biggest shopping day is coming up in less than 3 months! For retailers, it is one of the busiest times of the year and the competition is fierce as consumers are expecting massive discounts. Compared to brick and mortar stores, ecommerce sales surged continuously in recent years as people are becoming less tolerant of fighting the crowds and waiting in line. In fact, last year in the US, ecommerce sales on Black Friday raised $2.72 billion, which was a 14% hike from 2014; and the sales on Thanksgiving Day increased even more drastically to $1.73 billion, a 25% bump from the previous year .
Although Britons do not celebrate Thanksgiving, Black Friday has also become the biggest online shopping day in the UK. Last year, Britons spent £1.1 billion on Black Friday and £3.3 billion in total in the 4 day long weekend. Compared to 2014, online sales on Black Friday has increased by 35.8% . As Black Friday is going to be a big hit, here are 5 tips to prepare for it!
When should you get ready
Black Friday is on November 25th this year. Looking at search traffic data on Google Trends in 2015, internet users began looking for Black Friday deals starting in the middle of October . In other words, sellers need to start preparing pretty soon!
Previous year’s sales history helps with sales forecast
The best way to predict your sales on Black Friday this year is by looking at your previous sales performance. Historical sales data from the past 3-5 years would be a good indicator of your potential sales this year. Also, don’t forget to add a few percentage of growth to your expected sales volume to ensure you will have sufficient inventory in stock.
Focus on your existing products
As you will be quite busy as soon as Black Friday starts, focusing on products that you have sold before is a good strategy since you should be able to predict sales velocity based on historical data. It’s better not to release new products during this period because you don’t want to waste time or concern yourself with new and unfamiliar products.
Develop your pricing strategy
After forecasting your potential sales on Black Friday this year, you can estimate your profit margin and decide on how much discount you would be able to offer. As consumers expect huge discounts during this period, you have to make your special offer attractive enough to bring in sales. Certainly, the larger the discount, the more appealing the offer. 50% discount would be more eye-catching than 20% discount. However, you should consider whether it is worthwhile to cut that much into your profit margin. If you can sell a large quantity of listings, then offering a big discount is not a big deal. But if you are not sure, then just offer the discount that you are comfortable with.
Offer more product value to customers
In addition to offering discount for one single product, there is another way to make your products and prices more competitive — bundling two or more products together. Customers love to receive discounts when buying more than one product. For repeat customers, it’s a great opportunity to entice them into trying out other products as you can bundle the best sellers with other products. On the other hand, you can bundle two top-selling products as well and customers would be happy to get both at the same time at a better price.
As Black Friday is just around the corner, take note of these tips and get ready for the big selling season! Also, check out BQool’s Repricing Central to see how it can help you win sales while maintaining price competitiveness.