Get ready! Black Friday is upon us and shoppers are about to start a new shopping spree. The big discount battle the day after Thanksgiving. Yes, Black Friday has become a household name in Europe. Although not yet an official holiday in European countries, it is undoubtedly becoming the busiest sales season. This is the day when consumers go hunting for the best deals without having to worry too much about their bank balance. A great opportunity for trade to sell products well.
After another turbulent Corona year, this is more than deserved. Even the biggest fashionistas among us expect to be able to grab one or two fashion bargains on Black Friday 2022. While it may not be high on the list for some, established fashion brands are also taking part this year. As an online seller, you can’t miss this race. The perfect time for sellers to advertise and connect with customers.
Fortunately, all of that can be accomplished this year on November 25, 2022. On this day, various stores offer discounts on their products. Usually, Black Friday offers last 24 hours, but with increasing customer interest, some online stores have decided to focus not just on one day but on the whole week. The so-called “Black Week” runs from November 21st to 25th, 2022. With an additional extension until Cyber Monday on November 28th. Throughout the week, sellers are giving up to 70% off selected products.
According to statista.com, retail sales of fashion and luxury items will increase sharply in 2022 in countries like Poland (600%), Spain (471%) and the UK (437%) compared to 2018. According to the German Retail Association, 4.9 billion euros in discounts are expected in Germany alone for this year alone. This is an increase of 27% compared to the previous year.
How do I prepare for Black Friday?
As a seller, you’re wondering how to prepare for Black Friday. It goes without saying that before following the points below, you must have optimized your product offering across the different platforms. That means correct titles, correct images, good product descriptions and informative bullet points. Attentive consumers will search your site for that one product detail or feature that makes them choose your product over the competition’s.
Here are some key points for Black Friday sellers to keep in mind:
A good start is only half the battle. Black Friday may only last one day, but planning needs to start days, if not weeks, in advance. Most agencies recommend starting 5 days in advance, but precise planning by the end of October at the latest would be advisable. Unforeseen problems can thus be identified and addressed in good time.
Have enough resources
Without question, this is an elementary part of the planning. Of course it depends on the type of company. Whether you are a clothing manufacturer or an online boutique. You must be able to work quickly. An increase in sales leads to an increase in workload. Doubling the workload will affect your market performance in the long run if you don’t react in time.
If you’re a medium-sized company selling directly from your own warehouse on marketplaces and doing the shipping yourself, you should increase your staff by at least 15%. The staffing requirements may be underestimated when compared to that of a company that only does online sales.
Treffe die richtige Produktauswahl
Make the right product choice
Try to resist the temptation to list all products for sale. Technically you could do that, but ask yourself, “Is it worth the money and time?” Not all products are intended to be sold on Black Friday or other sale days or weeks. When it comes to product selection, there is much more to it than that. You choose not only based on best sellers and prices, but also based on your product’s availability, time of year, shipping option, possible product assembly, or product storage location.
Not every product you sell is a big seller on every marketplace. Neither is every marketplace suitable for every product you offer. Keep in mind that a product that sells well on Zalando because of a new trend doesn’t necessarily do well during Amazon Black Friday or Amazon Prime Days. The product selection should therefore not be too general, but also focus on the selected marketplaces where you want to offer discounts.
Analyze your prices
Let’s face it, Black Friday for customers is all about how much money they can save. An attractive price can be just the right incentive for them to buy that one Falke Cosyshoe or those fluffy slippers they’ve been waiting for months. Whatever it is, simply determining a discount without considering most cost factors is not beneficial to the seller. So calculate in advance how much of the profit margin you, as a seller or vendor, can offer the customer as a discount.
You don’t want to make a profit of only two euros on a 600-euro product just because you assume you have to give customers discounts. Selecting the top-selling products is one possibility, but perhaps the above points matter more. Therefore, calculate your discounts as well as possible so that you do not reduce your profit margin to an unacceptable minimum.
Of course, discounts do not have to be granted at the level of the individual product. For example, you can introduce a volume or bundle discount for products that are selling a little less well. A single purchase sells more products over a period of time. This has the positive effect that you get these products out of your warehouse faster.
Take care of shipping in advance
During Black Friday, it is likely that your transport company will not have enough transport vehicles or staff due to the high volume of deliveries. Due to the high volume of purchases, the traffic for the carriers is generally higher than on any other day of the year. Again, early preparation is a must.
If you’re not already working with a fulfillment partner, it’s a good idea to consider logistics companies like FedEx, DHL, or UPS. These companies have many years of experience and are often better able to anticipate delivery problems in advance. As for the logistics, you should make sure that the delivery of the Black Friday products is arranged in advance to avoid delays. Unfortunately, this part is often forgotten by sellers.
While this goes against the general rule of thumb, sometimes extending shipping by a day or two is the best solution for extreme delivery delays. Ignoring these factors can result in a poor customer rating, poor account health, and a decrease in your ranking. In the case of FBM, it can even lead to your account being suspended. So monitoring late shipments during these sales days needs to be part of your plan.
Keep an eye on your inventory
As the saying goes: “Don’t put all your eggs in one basket”. The temptation may be great, but some products aren’t worth including in your Black Friday sales. Products predicted to have low sales may increase advertising costs and/or affect exposure to other products. Not to mention the fact that adding these products to your schedule can mean extra work.
Also, maintaining inventory doesn’t mean replenishing all inventory. If you can estimate your sales figures, you have the freedom to decide how you want to organize your warehouse. Less stock on one item means more space for another item that sells well, provided stock can be (re)organised.
Define your retail media strategy early on
Okay, after all the planning and preparation, you think you’ve got it all covered. Can you sit back now? No of course not. The biggest challenge has just begun. Even if the preparation is right, unexpected situations can arise at any time. Keep track of your performance before and during sale days. Make sure you’re ready to act in time if the need arises.
An early start is paramount here. Start running advertisements like sponsored ads on marketplaces as early as possible to build up a good ranking and generate more customer reviews that will make the difference for customers later during Black Friday. Especially if you are a new seller on Amazon, Ebay or Zalando.
As some veteran sellers have noted, much of what happens on Black Friday is already in motion before customers consciously engage.
If you have a sufficient budget, you can also handle large cost peaks well. Don’t be afraid to spend more that day. Those are the rules of the game, so to speak. On such days, the CPC is simply more expensive. You should therefore advertise in advance. Some customers even create a shopping list in their marketplace buyer account weeks in advance. Just to see what exactly the discounts are on Black Friday. You also benefit from the still cheap CPC, which can be extremely high on Black Friday itself.
Also, consider extending your Black Friday sales into Cyber Monday so your brand stays more firmly in the minds of returning discount hunters.
This is also one of the reasons why you should carefully consider whether to include all the products you have listed. It’s okay if you only promote 50% or less of your products. What many forget is that you also promote your brand on this day. You want customers to get to know your brand. A satisfied customer will also come back after another promotion day if the demand is still there and the offer was better than that of the competition.
Work on your website and social media presence
Of course, some customers will not only buy your products, but will do their research first. That means they will also look for more information on the website. Shoppers won’t just focus on the marketplace on Black Friday. Your website is a way to promote your brand. Therefore, your website should be fully operational on Black Friday or Black Week. Perhaps the website for the sales week should also be adjusted.
The marketplace strategy you choose should also reflect your social media strategy. Don’t forget the various social media platforms. Think of Facebook, Instagram, Tiktok, etc. Because you should use your social media network to additionally promote your offers.
Of course, with many sales, the probability of returns increases. Especially since customers are overwhelmed with discounts on Black Friday. Impulse purchases are therefore inevitable. This means that the returns rate for heavily discounted products is highest after Black Friday and is likely to be higher than in previous periods. In some cases, Blackfriday can therefore be a more favorable moment for Sponsored Product Ads and other retail media activities on marketplaces due to the lower CPCs and return rate.
Consider all stakeholders
Last but not least, it should be ensured that everyone involved in your company is aware of their duties and the associated responsibilities. Hire the right people when needed. Not only internally, but also externally. Make sure everyone is aware of the rush that Black Friday can bring. Everyone should be aware that there is a surge in demand on Black Friday. It’s important not to make false promises, even to your customers. After all, the focus is on the customer on this day.
What other shopping days are there?
Of course we must not forget Christmas. In some countries it is the main sales week. However, there are many other sales days and/or weeks that are relevant besides Black Friday. Maybe a topic for another blog. With that in mind, I would say, “Stay tuned”…
Here you will find our selection of other important sales days:
- Cyber Monday – The Monday after Black Friday
- Singles Day – Honoring those who aren’t romantic, the day takes place on November 11th every year.
- Black November – Instead of a day or a week, why not a full month?
Hier findet ihr unsere Auswahl weiterer wichtiger Verkaufstage:
yber Monday – Der Montag nach Black Friday
Do you need further support with Black Friday? We are glad to help you! Simply arrange a non-binding consultation and ask us your questions!