Holiday spending will become significantly different from the upward spending observed last year and in years before that.
So, in what ways will Black Friday 2023 be different?
Insights for ecommerce Black Friday deals
Based on data jointly reported by the US Census Bureau and the US Department of Commerce, the quarterly sales for ecommerce in Q1 of 2023 was $272.6 billion.
Will consumers shop the best Black Friday deals this year?
In 2020, IBM and the NRF reported on the rise of an emerging customer profile -- the so-called, “always-on” consumer. The study, which included close to 20,000 consumers spread across 29 countries, revealed that 71% are willing to pay a premium price to buy from brands that practice transparency.
A more important finding is that, with the growing options in and accessibility of mobile ecommerce, 35% of consumers buy on impulse at least once weekly.
Across industry studies about consumer behaviors, however, one theme resounds, and, that is, consumers want convenience. Tell-tale signs that ecommerce would soon take over retail have been written all-over and intensely anticipated for many years now. It was just a matter of time before it did.
In fact, what the COVID-19 pandemic did was make ecommerce takeover retail sooner. Actual reports in the previous section showing a steep rise in ecommerce sales from Q1 2020 support this insight.
What’s the future of consumer spending going to look like for the remainder of 2020 and beyond? Here are the projections you need to know:
Consumers are spending less
Although overall ecommerce sales are on the rise, consumers are spending on key categories only. This is a direct result of job loss and redundancies.
According to PwC, consumers reported spending the most on groceries, home entertainment, and home improvement projects. On the contrary, consumers have cut back spending on most other categories:
Many of the survey respondents also said they are buying more of these items online and taking fewer trips to make in-store purchases. About 18% reported a decrease in income amid rising expenditure on household bills.
BFCM will rely more on online channels
Black Friday and Cyber Monday will continue to be in people’s psyche, for a while more at least. If you want your ecommerce business to make more revenue or at least make up for the possible losses you incurred for the most part of the year then you have to take every possible opportunity to sell, including BFCM 2020.
Even your will to sell won’t be enough, however, because a bigger portion of consumers will be buying from merchants who have enabled digital shopping options. These emerging buyer preferences are directly driven by the non-negotiable realities of the pandemic which has taught buyers to rely more on online stores for their needs, contactless payments, and deliveries or pick ups.
More new online shoppers will be buying
Google estimates that half of US shoppers won’t be shopping on Black Friday 2020. Of the buyers who plan to shop for the holidays, about 75% expressed preference to complete their shopping online.
Despite the downward trend, ecommerce in general is on the rise. Whether or not you get to sell more come Thanksgiving will depend a lot on:
- Whether or not you can effectively reach your customer
- Whether or not you can create a need for your product and communicate it well
- Whether your ecommerce is enabled to deliver excellent and contactless customer experience.
Customers are buying from trusted retailers
Google further reports that buyers will research products and sellers online before they actually buy. This time of uncertainty may also spur a much-needed boost for small, local businesses. Google projects that the majority of shoppers (66%) will choose to buy local.
How to boost BFCM deals
Here are the top things that you can do to maximize your BFCM success:
- Create an omni-channel customer service and marketing strategy
- Communicate and follow through with personalized customer service
- Simplify the shopping experience for your customers
Will BFCM be profitable for ecommerce in 2023?
While retail revenue projections for the year are generally grim, consumers will still want their share of the best Black Friday deals. The holidays are a tradition that will continue to inspire increased spending but, by how much, well only the spending public would know.
One thing remains for certain -- Cyber Monday and Black Friday Online Sales are set to skyrocket way beyond what in-store retail can sell. So, if you’re keen on nailing this forthcoming opportunity, you should have started your online store campaigns a long time ago. But if you haven’t, now is the best time to get your sales up and your stocks moving.
Need help? Gorgias is here to make sure you get the most out of Black Friday 2020 and beyond. Check out our BCFM ecommerce guide for more tips and our guide on BFCM marketing ideas for more ways to maximize your sales during the holiday.