Understanding Cyber Monday and Black Friday.
Introduction.
And just like that, the madness of Black Friday and Cyber Monday has come to an end. So, how did the highest revenue week of the year do in terms of sales?
The answer is – not as well as expected.
Of course, sales were still higher than any other regular day, but 2021 saw the first-ever year where online sales dropped in comparison to its predecessor.
COVID-19’s Effect on Cyber Week Sales.
The COVID-19 pandemic had a big part to play in both the 2021 and 2020 Cyber Monday and Black Friday numbers but in very different ways. As mentioned in our previous blog, Black Friday – The Highest Revenue Day of the Year, the end of November price cuts came as a blessing in 2020. Many had suffered job losses or were solely relying on furlough for income, not to mention the general economic crash and recession the lockdowns brought upon the world. People took advantage of the sales week in 2020, causing its results to boom massively. But, this year, people are more knowledgeable about what to expect from COVID-19.
The pandemic has caused delays across manufacturing and supply. Last year, many experienced the late delivery of items they ordered on Black Friday or Cyber Monday, defeating the purpose of shopping for Christmas on these days. In response, consumers began their shopping early this year to ensure that any gifts they bought were ready to be given on Christmas Day. This meant that when Black Friday and Cyber Monday came along, there was not much left to buy.
As well as supply chain issues, there is also a lack of product availability. Supply has reduced by around 20% due to issues caused by the pandemic. Some of these issues include the social distancing procedures, illness, job loss, travel restrictions, and employee migration. Each of these factors had a part to play in the slower delivery times, which only prompted people to buy even earlier.
The New Approach to November Sales.
Instead of simply focusing on ‘Cyber Monday’ or ‘Black Friday,’ retailers are opting for a discounted time period rather than specific days. Many retailers adopted a ‘Cyber Week’ approach, with some starting sales as early as October. This change in shopping habits caused the change in Black Friday and Cyber Monday figures. Instead of a mad rush to get what you need over one weekend, people are adopting a slower and steadier pace to Christmas shopping.
If you are an online retailer, having a top-notch digital strategy in place at this time of year is crucial to gaining revenue – and we can help.
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