While we couldn’t predict murder hornets, square dancing hurricanes, the death of Mr. Peanut, or Carole Baskin feeding her husband to the tigers, we’ve added some squares to our 2020 eCommerce bingo card. These are our predictions for Holiday 2020, and how you can make sure your business is prepared:
For as long as most of us have been alive, holiday shopping has primarily been condensed into a 3-5 day stretch of crazy discounts. Last year, it was estimated 165 million people would do their holiday shopping between Thanksgiving and Cyber Monday.
This 3-5 day stretch has always been a nightmare for some retailers (especially smaller businesses) to manage. One misstep, and the majority of your revenue for the holiday season could be in jeopardy.
We predict that holiday shopping will start sooner, and be more spread out.
If the holiday season has historically pushed your site to the limits, you may want to consider taking a deep dive into the technical aspects of how things are running, as well as historical conversion rates and how to improve site bandwidth.
Online Sales Have Already Grown YOY: Since the start of COVID, we’ve seen a huge surge in online sales. From the start of lockdowns in April, all the way through July, we’ve seen online sales increase from a range of 49% all the way up to 78% YOY. The highest increase was during “panic buying” months, when brick & mortar stores were closed and consumers had high demand for household items. Though we may not see a full 78% increase during the holiday season, we are likely to see a similar surge in online traffic.
Low-Income Shoppers: Statistically, low-income shoppers are less likely to shop online vs in-person. This is due to a variety of reasons, such as lack of reliable internet access and mail routes causing delays in package deliveries. However, one of the main reasons low-income shoppers are less likely to shop online is trust. Consumers with household incomes under 50K per year are less likely to trust the checkout process than those with higher incomes. This makes sense, as fraud can potentially have a much higher impact on their financial situation than those with higher household incomes. However, this year stores will see more low-income shoppers digitally than in person on account of the health risks of in-person shopping.
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Make Sure Your Reporting Is Accurate: Check all of your pixels and ensure everything is reporting correctly. You’ll want any decisions you make during the holiday season to be based on “true reporting,” such as through your eCommerce platform (Shopify, Magento, WooCommerce, etc.) as web data aggregator sites like Google Analytics generally have a reporting lag.
2020 is proving to be a very competitive year in the digital marketing space. With digital marketing budgets decreasing on average by 20% on account of COVID, we’re seeing an increase in competition as far as the quality of digital marketing programs to try to maintain revenue as budgets drop.
Can your inventory keep up with the demands of your consumer? 2020 may be a difficult year to determine how much to increase your inventory before the holidays. The last thing you want is to have a repeat of the great toilet paper shortage we saw earlier this year. The only thing worse might be overstocking and throwing your actual money down the toilet. Our prediction is that you’ll need more inventory than what you’ve needed in the past to keep up.
Consider Your Inventory While Making Your Promo Calendar: This year is going to be a disaster for some retailers. Even Apple is reported to have had to change the launch date of their upcoming iPhone due to a lack of resources to produce their products. Now is the time to open the line of communication with your fulfillment partner and suppliers to make sure the supply chain has enough resources to support your increased inventory before you determine your promotion schedule. Don’t push products for which you won’t be able to fulfill orders.
UPS & FedEx May Not Cut It: While UPS & FedEX flexed their strength with a record holiday season last year, even they aren’t immune to COVID-related issues. Similarly to USPS, both carriers are seeing a large decrease in marketing dollars, as well as a large surge in residential packages (including deliveries that are now being transferred over from USPS). All of this put the couriers in a tough spot, and both have seen a decrease in on-time package delivery since COVID started up in May. It’s likely that we will see less of an issue with both having ample time to plan ahead for the holiday season, but with financial strain, it’s possible we’ll see a push back in overtime hours, resulting in additional delays
Use In-Store Visitors To Your Advantage: While it’s important to keep in-store experiences seamless for shoppers this year, you should also take some time to evaluate your store layout to make sure you’re getting the most out of the minimal foot traffic you’re seeing in-store. Consumers are going to be less likely to price shop, return items, etc. when they purchase in-store vs online, so consider placing the high-demand items towards the back of the store. Use COVID safety maps to your advantage to draw consumers in and out of aisles with surprise-and-delight items they may have not yet considered.
What are you doing to prep your ecommerce store for Holiday 2020? What’s on your bingo card for the rest of the year?
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