The Shopping Tsunami
Talking about the shopping season, all of us know about the famous Black Friday, but who says the fun has to stop after one day? Nope, we stretched it out like that extra piece of pie on Thanksgiving weekend, making it a retail party till Mr. Santa lands on your roof!
Leading up to the big day, everyone was putting on their prediction hats. Will people spend more than the GDP of a small country this year? Spoiler alert: Yes. Analysts were doing their thing, and the consensus was like, “Get ready to shop like there's no tomorrow!”
As forecasted in Adobe report, this year customers still expected to spend more than ever this holiday season. 89% of the survey respondents said they will shop online this holiday season.
And 62% said deals are important for their shopping. I’m totally related that I live for deals.
So, why did Black Friday 2023 become the shopping superstar? Maybe people were just craving a bit of retail therapy after a rollercoaster of a year. Or maybe it was the marketing geniuses who convinced us that we absolutely needed that talking toaster (because who wouldn't want a toaster that compliments your breakfast choices?).
Whatever the reason, this year's Black Friday set the bar higher than that awkward mistletoe encounter at the office party.
Black Friday sales break records
Now, let's talk numbers – the kind that makes accountants break into a happy dance. Black Friday sales this year were like a jackpot on turbo boost, growing faster than your Wi-Fi signal during a Netflix binge.
And for sure, it’s Black Friday that becomes the MVP of the holiday shopping season.
Sales revenue from online shopping on Black Friday reached a record high of $9.8 billion, up 7.5% from last year, according to report.
Now, let's talk about the e-commerce maestro, Shopify. This platform was basically the MVP of the MVPs. If Black Friday were a basketball game, Shopify would be the player making almost half of the three-pointers. Seriously, they were like the unsung hero of online sales, helping businesses – big and small – turn their Black Friday dreams into reality.
According to Shopify, their merchants set a Black Friday record with a combined $4.1 billion in sales.
Shopping peaked when collective sales reached $4.2 million per minute at 12:01 p.m. EST on Friday. You can watch their live report about global sales at bfcm.shopify.com.
The mobile decade
This year is set to be the first-ever mobile dominant holiday shopping season.
And more than half of that revenue, about $5.3 billion, came from mobile purchases, lead analyst at Adobe Digital Insights, Vivek Pandya, told CNBC.
Consumers are especially likely to purchase through their phones during peak family time - Thanksgiving and Christmas Day are consistent highs for mobile revenue share. Most mobile users are Millennials, Gen X, and Gen Z.
Otherwise, we can see that conversion rate are not as high as on the desktop. There’re still room for merchants to improve their mobile experience.
Black Friday discount
To incentivize stronger consumer spending and growth while also offloading excess inventory, we expect retailers to provide double-digit seasonal discounts within the range of 12-35%.
The strongest discounts will reach new heights and peak strength starting from November 17 and spanning across Cyber 5 (Thanksgiving through Cyber Monday). Discounts will fall as deep as 35% before weakening to 16% for the remainder of December.
Read more about >>Psychology behind discounts and how to use discounts to boost sales>>
So, dear reader, armed with this retail wisdom, how can you ride the upcoming shopping seasons and conquer the challenges of the next year? Well, here's the secret sauce:
- Learn from the Data: Dive into the sales analytics of Black Friday 2023. What worked? What didn't? The numbers are your best friend in this game, helping you refine your strategy for the next retail showdown.
- Embrace the Online Wave: E-commerce is not just a trend; it's a retail revolution. If Black Friday taught us anything, it's that the online realm is where the action is. So, polish up that website, streamline those checkout processes, and get ready to conquer the digital shopping space.
- Connect with Your Audience: The magic of Black Friday wasn't just in the discounts; it was in the connection. Engage with your customers, understand their needs, and create an experience that goes beyond the transaction. After all, loyal customers are the real holiday miracle.
- Prepare Early: The early bird gets the worm, and in retail, the early planner gets the sales. Start preparing for the next shopping season well in advance. From marketing campaigns to inventory management, a well-thought-out plan is your ticket to a stress-free and successful holiday run.
As we wrap up this Black Friday saga, remember that every shopping adventure is a chance to learn, adapt, and triumph. So, gear up, entrepreneurs and shoppers alike. The retail rollercoaster never stops, and with the right insights, you're not just riding the wave – you're making it. Until next year's shopping spree, happy strategizing and may your carts be ever full!