Want to Supercharge Your 2024 Holiday Sales? Here's How! ✨

#HTE 323 -Strategies, examples, and much more!

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How to E-commerce
September 05, 2024 • Estimated Reading Time: 12 minutes

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Hello there, HTE rock stars! 😎 

Get ready for the 2024 holiday season with our latest newsletter! We’ve covered why omnichannel marketing is crucial for your brand, assessed retailer readiness for the holiday rush, and shared practical tips for cutting shipping costs. Discover how to enhance your marketing strategy, understand the retailer’s challenges, and save on shipping to boost your success this season. Dive in for actionable insights and strategies to stay ahead of the game! ✨

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-Why Omnichannel Marketing Matters in 2024? 🤔

-Are Retailers Ready for 2024 Holiday Shopping?🥳

-5 Ways To Reduce Shipping Costs✨

-Top Reads - Real-Time News Right For You. 📚

-HTE Job Board- Get Your Dream Job With A Click! 🧐

Why Omnichannel Marketing Matters in 2024?🤔

Connecting with consumers through multiple channels, known as omnichannel marketing, remains a powerful strategy to keep brands in mind. Millennials, in particular, are loyal to brands and stores that provide exceptional, customer-focused experiences. To build a strong connection with customers, brands should offer a seamless shopping experience across reliable platforms and support it with various channels for customer interactions.

Ensure you have a strong online presence, follow your customers throughout their shopping journey, and know when to give them a gentle nudge to encourage purchases. Consistently delivering a personalized experience across all channels is key to keeping customers engaged.

Rising Digital Expectations from Consumers

Consumers are becoming smarter with their money, even younger generations. The demand for a great digital experience is growing. Consumers want to feel good about a product before considering a purchase, meaning businesses need to deliver high value not just in the product but also in the overall shopping experience.

The challenge for businesses is to showcase and provide value while making customers feel valued. Knowing your customers well is crucial for not only meeting but exceeding their expectations, which can turn them into loyal customers. By analyzing customer information and purchase data, businesses can gain valuable insights into customer preferences and behavior.

Mobile Shopping Continues to Rise📱

Mobile devices are playing an increasingly important role in eCommerce. M-commerce, or mobile commerce, is expected to keep growing in 2023. Last year, Shopify reported that 73% of Black Friday and Cyber Monday (BFCM) sales were made on mobile devices, compared to 27% on desktops. In the last quarter of 2022, mobile shopping accounted for 38% of overall digital spending in the US, up from 24% in 2017.

To tap into this market, businesses need to ensure their platforms are mobile-friendly. In the past, consumers often switched devices to make online purchases because mobile sites were hard to navigate. But with a mobile-responsive online store, businesses can offer a smooth shopping experience that keeps customers on their smartphones.

Brand Value Beyond Economics🌍

Consumers today are more conscious of their purchases. Market research shows a growing preference for products that are locally sourced, ethically produced, and carbon-neutral. There’s also an increasing interest in products that positively impact local communities. Consumers are more likely to support brands that give back to the community and practice sustainability rather than those solely focused on profit.

This trend is evident in “Anti-Black Friday” campaigns, popularized by brands like Patagonia, which highlight social issues and encourage consumers to avoid excessive consumerism. To appeal to these conscious-minded consumers, brands can incorporate a ‘social enterprise’ element into their promotions. However, this needs to be done with sincerity. Partnering with a charity or supporting a community must align with the brand’s values and be communicated thoughtfully, so it doesn’t come across as a gimmick.

Black Friday Is Going Global 🌍

Originally an American tradition following Thanksgiving, Black Friday has become a global phenomenon, partly due to the rise of eCommerce. In 2022, Shopify’s Black Friday and Cyber Monday sales saw significant revenue from countries like Canada and the UK, with London ranking as one of the top cities for BFCM shoppers worldwide. This presents a new opportunity for businesses outside the US to participate in Black Friday sales. It also highlights the need for brands to tailor their Black Friday deals to different regions.

Brands should ideally start preparing for Black Friday a year in advance, making it part of their annual marketing strategy. While the economy is slowly improving, it’s important to have backup plans in place, as surprises can still happen, as we learned from the pandemic.

Are Retailers Ready for 2024 Holiday Shopping?🥳

By July, many retailers are already deep into preparations for the upcoming holiday shopping season, a crucial time for generating revenue and hitting annual sales targets. To gain insight into how they’re gearing up, a survey was conducted involving 23 online retailers. These retailers represent a diverse range of businesses, with annual revenues spanning from $1 million to over $100 million. Employee numbers also vary widely, from just 1 to over 1,000👥, reflecting the different challenges and strategies that these retailers face as they prepare for the holidays.

A key focus during this time is inventory management. More than half of the surveyed retailers (57.14%) feel confident that they are well-prepared in terms of inventory. These retailers have likely been proactive in securing stock, ensuring they can meet the anticipated holiday demand. However, about half of the respondents are less certain about their inventory readiness. These retailers are heavily reliant on the supply chain and acknowledge that their inventory positions may remain uncertain until closer to the holidays. 

Predictions for Consumer Shopping Behavior

More than half (53.85%) of the retailers expect two main trends this holiday season:

- High inflation will likely lead to fewer purchases overall.

- Consumers will compare shops more, which could lower conversion rates.

Nearly half (46.15%) believe consumers will shop more on marketplaces this year. Additionally, 15.38% expect:

- July’s Prime Day will reduce shopping during the traditional holiday season (November and December).

- Consumers will focus their shopping even more on Amazon.

- Shoppers will buy earlier to avoid out-of-stock items.

The same percentage (15.38%) thinks that consumer behavior will be similar to previous years.

Expected Holiday Sales

Most retailers expect sales growth this holiday season:

- Over half (53.85%) expect sales to grow up to 24%.

- Smaller groups are more optimistic, with 7.69% expecting growth of 25% to 49% and another 7.69% expecting growth of 50% to 74%.

However, 7.69% expect their sales to decrease by 11% to 49%, and 15.38% expect their sales to remain flat.

Challenges for 2024 Holiday Season

Retailers are facing several big challenges as they prepare for the 2024 holiday season, most of which are related to their financial health. 

First, about two-thirds (66.67%) of retailers are worried about rising inflation and the increasing costs of doing business. This means they’re concerned that prices for everything from goods to services are going up, which could make it harder to maintain profits.

More than half of the retailers (58.33%) are also worried about meeting their profitability goals. They want to make sure that, after covering all their costs, they still have enough money left over to meet their financial targets for the season.

Lastly, changes in online privacy policies, like those related to third-party cookies, are another challenge for 25% of the retailers. These changes can make it harder for retailers to track customers’ online behavior and tailor their marketing efforts, which could impact their ability to reach and convert potential buyers.

5 Ways To Reduce Shipping Costs✨

Reducing shipping costs is crucial for maintaining a healthy profit margin, especially in a competitive e-commerce landscape. Whether you're a small business or a larger operation, finding ways to cut down on shipping expenses can make a significant difference to your bottom line. Here are five practical strategies to help you reduce shipping costs and keep your business running efficiently.

1. Cut Shipping Costs with Shopify Shipping 💸

Using Shopify Shipping is one of the easiest ways to reduce shipping expenses, no matter where you’re sending packages. Shopify offers discounts of up to 88% with major carriers like USPS, UPS, DHL, and Canada Post, and these savings come with a standard Shopify subscription.

2. Opt for Flat Rate Shipping When You Can 📦

Flat-rate shipping is a straightforward way to keep your shipping costs predictable. By charging the same rate for shipping based on size, weight, or destination, you make it easier to budget and lower the chances of customers abandoning their carts due to unexpected shipping fees. 

3. Calculate Shipping Fees Accurately 📊

To avoid unexpected costs, it’s essential to calculate your shipping expenses accurately. Keep track of everything from packaging materials to labor and courier fees. Don’t forget about potential import and export fees for international shipping. Whether you charge customers for shipping or absorb the cost, making sure you have an accurate understanding of your expenses will help protect your profit margins.

4. Choose the Right Packaging 🛍️

Reducing shipping costs starts with smart packaging choices. Use the smallest possible packaging to avoid paying for extra space. If possible, use free packaging from carriers or reuse materials to save money. Analyze your order history to choose packaging that matches your typical orders, and consider custom packaging if you have specific needs. This can reduce wasted space and prevent damage, saving you money in the long run.

 5. Reduce Package Weight ⚖️

The weight of your packages can significantly impact your shipping costs, so it’s important to keep them as light as possible. Consider using corrugated boxes or poly mailers, which are both strong and lightweight. Use lightweight packing materials like air pillows or packing paper to fill empty space without adding too much weight. If you have large orders, consider splitting them into multiple shipments to distribute the weight more evenly and potentially lower costs. 

Top Reads📚

One B2B brand on adopting B2C tactics to drive awareness ~ 03 September 2024, Marketing Week 

What's open and closed on Labor Day? ~ 02 September 2024, USA Today

How To Reduce Shipping Costs: 10 Useful Tips ~ 01 September 2024, Shopify

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Your Voice 🎤

Phew! That was a lot, right? But hey, knowledge is power🌟. We hope this edition gave you some insights and maybe even cleared up a few doubts.

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How to E-commerce