Black Friday 2000 vs. 2020
What is Black Friday?
The term Black Friday first appeared in its current meaning in the United States in the 1960s and described the traffic jams and crowds on the sidewalks that formed in cities on the two days following Thanksgiving. These allegedly ran like a “black crowd” through the shopping streets. Another explanation is that Black Friday is a synonym for the black numbers that business people write year after year starting on this day. Because of the enormous sales that are made on Black Friday, many retailers bring their balance sheets out of the red into the profit zone on this day.
Black Friday is officially celebrated in the USA for the 20th time this year and officially opens the start of the Christmas shopping season. 2006 thought Apple, what works in the US also works in Germany and brought Black Friday to Germany for the first time. Attracted by this, more and more retailers jumped on the bandwagon and since then have also organized special Black Friday sales.
Black Friday stationary vs. on-line
How is Black Friday developing?
While Black Friday hardly won any interested parties in e-commerce years ago, and customers preferred to camp in front of shops in order to secure the best offers by all means when the shop opened, this has increasingly turned into online shopping in recent years Day blossomed. Since then, Black Friday and Cyber Monday have been a resounding success, especially in the e-commerce sector. Customers much prefer to hunt for bargains online – this saves time and is also much more relaxed.
How does COVID19 affect Black Friday?
Retail executives face a tough decision in an unprecedented year: what should they do in their brick and mortar stores on Black Friday, amid a deadly pandemic that is likely still raging? Black Friday is traditionally about getting as many people into the store as possible and driving sales up. So it is already clear that die pandemic will already hit many retailers hard. It is unclear whether retailers will have to resort to other strategies that comply with hygiene regulations or whether the executives will decide not to participate.
It looks different in e-commerce! The buying behavior during the Corona crisis reveals that Germans are increasingly discovering e-commerce for themselves. The crisis has given e-commerce a strong growth spurt. In particular, everyday goods such as groceries, pet supplies, medication and drugstore products are purchased much more frequently on the Internet. So it’s no wonder why a large number of retailers have ventured into e-commerce in recent months. This pays off for e-commerce newbies on the one hand for day-to-day business, but also for Black Friday 2020.
Stationary retailers will suffer from the dwindling number of customers in the shopping streets in 2020, but e-commerce will benefit from the increasing traffic.
Checklist: How to Make Your Black Friday 2020 a Success
What is clear is that e-commerce is growing, and with it the offering. In order to exploit the involuntarily received potential of this year’s Black Friday, a sophisticated plan and a clear strategy should be a must-have for every online retailer, regardless of whether they are newcomers or veterans. In the following we give you a checklist with the most important success criteria.
1. Online presence
The online presence is essential! For this, your website must be fit and extremely resilient for the increased traffic in the coming days. To achieve this, it should first be clarified whether the website host is up to the challenges. After all, it would be annoying to miss sales just because your shop is too slow or not accessible via smartphone, products are not listed or there are other bugs. The keyword for you: TEST!
2. Pricing strategy
Nothing works without a discount! It is crucial to attract attention with your prices and the right discount strategy and to offer users clear added value. A general discount on a product category only makes sense if it is higher than the usual sale discount. In the case of large discounts on special products, the selection is again decisive.
By the way: With our repricing software and the right strategy, you can easily set your prices for large events such as Black Friday, Cyber Monday & Christmas.
Two out of three users cancel the purchase in the checkout because they are not satisfied with the parcel services and shipping options offered. A list of the options clearly communicated in advance can help. The more transparency is offered to the customer, the more trust develops in the online shop.
4. Best-salable products
Big discounts on unattractive products tend to be a deterrent. Which is why an analysis for the products with high sales opportunities should be carried out before the sale. Since this can only be done manually with a great deal of effort, the ASIN advisor track down sales opportunities for you and find items with potential. He analyzes around 40 million products on the German Amazon marketplace in order to discover the best-selling products in a category.
The potential on Black Friday is great, but the steadily growing competition is just as great. The right targeting can help you to act in a more targeted and efficient manner. Ideally, you should define your target group in the months leading up to the event by drawing interested users to your site and aligning marketing measures accordingly. In the crucial days, when many companies are vying for the attention of users, you benefit from guiding precisely these users through the sales funnel.
6. Market and competition analysis
Many dealers use it for market and competition analysis automated software solutions . For optimal positioning in e-commerce, both on Black Friday and at other major events, you should constantly monitor and precisely analyze the prices of your competitors. Because only if you know how competitive your prices are compared to the competition can you position yourself successfully in online trading.
Conclusion: Successful on Black Friday
What is certain is that both Black Friday and Cyber Monday are now mandatory for e-commerce companies. We have thus covered everything you, as an online retailer, need to have in terms of basic knowledge to prepare your brand for Black Friday 2020. And now it’s up to you: Be creative, plan and test, and be sure to approach the matter with sufficient lead time. With a well-thought-out plan, you can stand out from the crowd and drive your success forward.