Winter holidays are always the hottest time for retailers as people are trying to find gifts for their friends and families. And e-commerce businesses get more attention in geometrical progression with each year as buyers realize the convenience of shopping online. But it was true for all the previous holidays. What will happen to retailers this year considering the current situation?
The pandemic wrecked our plans on virtually anything from traveling to accumulating some money as the borders got closed and many people lost their jobs. And it’s rather hard to predict the behavior of people during this holiday season. Yet, there is one thing we know for sure — everyone still wants to have some fun and spoil their loved ones. So let’s get our hands on statistics from 2019 and some surveys marketers have already done, mix that with some logic, and try to figure out what’s waiting for e-commerce businesses in winter 2020.
Expect much more traffic
Online retailers must’ve already seen the growth of traffic on their sites as offline stores were getting closed and buyers were locked at homes because of the quarantine. For example, stats from this spring, when the pandemic just began unfolding, show that online shops saw more traffic every day than they experienced during Black Friday of 2019.
Now, that’s a very important clue that allows sellers to predict the load their websites will have during this holiday season. It’s unlikely that consumers will be willing to spend their gift hunt among crowds in shopping malls. So you should think of the possible amount of traffic in advance and get ready for all the attention your site is going to get. It’s better to opt for a hosting solution for more resources that you think you might need to avoid any issues if a traffic spike occurs.
King Servers’s VPS hostings can handle quite a high load, and it’s easy to expand your resources as you need. But if you think that you might need even more resources, you can opt for our dedicated servers to get access to a whole undivided machine. And of course, if you’re not sure which hosting option to choose, you can always ask us for help. King Servers’s specialists will study your needs and offer you a suitable solution.
Will buyers try to spend less?
Since a lot of people have unfortunately lost their jobs due to the quarantine, we can expect that they won’t have an opportunity to spend a lot of money. However, that doesn’t mean customers didn’t save up for holiday gifts. Also, there are still a lot of people who managed to avoid financial issues. So there is no definite conclusion we can make.
But there is one thing we can say for sure — buyers are already very price-sensitive as various surveys suggest. Almost half of the consumers that took part in these studies said that they bought items online based on their prices in 2019. With the current situation in the world, we can expect people to do more research as they try to find better deals.
That’s why you should pay attention to your metrics now. Notice if:
- Bestsellers have changed to less expensive products
- Discounts have higher conversions than last year
- Customers add cheaper items to the wishlist
If you can spot such tendencies, it means that your buyers are trying to cut their spendings. So they will look for better deals before buying from you. And if they find a lower price — they will opt for that offer.
Look at the current bestsellers and items that are resting in wishlists to figure out the positions you will apply discounts to this holiday season. Remember that free shipping, gifts, and other special offers are just as effective as discounts.
The date of Amazon Prime Day is still unknown
Since 2015 Amazon Prime Day was happening in summer. But this year, this event was postponed, and Amazon is thinking about launching it in the autumn — perhaps, in October. This creates a huge issue for everyone else who relies on getting more sales during Black Friday and Cyber Monday — events that were a gold mine for retailers for the last few years. If Amazon launches its Prime Day in October, people might get gifts during this event and spend less on Black Friday and Cyber Monday.
The best thing you can do now is to wait for Amazon to tell the date of its Prime Day. Also, think in advance, which offers you could launch along with Prime Day to get some consumers on your side. And if you’re selling items on Amazon, get prepared for this event now to be instantly ready for the frenzy.
Which categories will be popular?
Looking at the statistics now, we can see that the jewelry industry saw a significant drop in sales since the beginning of the pandemic. However, it doesn’t mean that buyers won’t want to treat their friends and families with jewelry as a holiday gift. Clothing still takes the top position — but we can expect the focus of buyers to shift from outdoor clothes to pajamas and other cozy items to wear at homes. Also, books, media, toys, and food are still getting a lot of demand.
As cash becomes more useless with the rise of online shopping, consumers begin getting more gift cards. So that’s something you can focus on as well. Along with that, study the trends for the categories of products you’re selling to see which ones become less popular. Then you can come up with special offers that would boost the sales for these categories — especially if the higher price is the reason why consumers step away from such items.
Additionally, study the activity of customers from various regions if you sell abroad. Buyers from different countries might opt for different categories. And if you don’t sell across borders, study the demand in other countries anyway — maybe it’s time for you to begin shipping your products abroad.
The bottom line
Of course, trying to balance out promotions, don’t forget about other essential elements that impact the decision consumers make — shipping and customer support. Even if your price is a bit higher than your competitors offer, but you ship items faster and at a lower rate or for free, you quite likely will get more sales. Track your trends and tendencies other retailers have and try to build a solid holiday sales plan while King Servers will handle your traffic.
