Holiday omnichannel: Winning Black Friday and Cyber Monday
Shoppers want flexibility, making an omnichannel holiday strategy critical for retailers to win Black Friday and Cyber Monday this season.
The fourth quarter of each year is a heavy hitter, accounting for the highest quarterly revenue for many retailers. Black Friday and Cyber Monday have been facing off for the past several years and Cyber Monday 2020 even eclipsed Black Friday sales, bringing in $10.8 billion versus $8 billion, respectively.
As we head into the throes of Black Friday and its more lucrative offshoot, it’s important to look at the e-commerce challenges facing retailers as the holiday season progresses:
- Supply chain issues
- Shipping snafus
- Convenience over loyalty
- Reducing returns
- Finding competitive edge
E-commerce challenge: On-time delivery
Supply chain issues have left no retail vertical untouched on the road to the holidays. But shoppers still have high expectations and expect their goods to arrive when a retailer promised them. And while free shipping is great, it also needs to be fast. Cost is a major factor making retailers think twice about offering free shipping on so many orders.
Get this: a 747 freight jet used to cost $750,000, but now it’s closer to $2 million, according to Ray Wong of Constellation Research.
The cost of that “free” shipping has gone up significantly for retailers, especially in light of backups at ports around the world. Couple supply chain issues with inflation and shoppers are in for a much more expensive holiday season, so transparency and checkout deadlines will be required.
Another way that online retailers are tackling delivery challenges is by offering BOGO deals to deliver more products in less shipments. This also has an added bonus of increasing the order value and size, while maximizing efficiencies in the supply chain.
To get a pulse on early holiday shopping behavior, I surveyed my followers across LinkedIn, Twitter, and Instagram over Halloween weekend; 34% said they’d already started buying gifts. This maps nicely to the 22% of shoppers that had already started their holiday shopping back in September, according to Klarna research. As more shoppers get an early start, this will reduce some of the crunch that retailers fear.
Black Friday 2021 trends: What retailers can expect
Last year's holiday shopping season was all about e-commerce. Retailers should plan on more of the same as pandemic-driven shopping trends continue to grow.
Shoppers put a priority on convenience, purpose
Brand loyalty has become a nice-to-have this holiday season. It’s taking a backset to convenience due to all the supply chain issues.
During the pandemic, shoppers grew used to substituting their favorite brands for what was available when they had an immediate need. The same will hold true during the 2021 holiday season. If the must-have gift won’t deliver until January, then shoppers will simply have to change course.
Consumers also are looking for brands that stand for causes they support and are increasingly putting their money where their values are.
Overall, shoppers are trading loyalty for convenience, mission, purpose, value, and availability. Retailers that rise to the occasion will benefit from a nice bump in sales.
Sustainable retail: Better for the planet and the bottom line
Sustainable retail has gone mainstream as younger generations become market forces. Going green not only helps the environment, but boosts profits.
The ongoing battle against returns
Returns remain a top e-commerce challenge for retailers. Returns are expensive, so brands and consumers alike are really trying to make sure the right product is delivered the first time.
Think of all the shipping, labor and customer acquisition costs. They can really add up. For consumers, returns can be a hassle.
This means that brands must invest significantly in helping customers choose the right products by improving product information and images. Fashion retailers should also consider artificial reality and virtual reality solutions that allow shoppers to find the best fit and style before they buy.
The high cost of e-commerce returns: A trillion dollar problem
Marketing metrics often overlook the high rate of e-commerce product returns, which is extremely costly to retailers. As global e-commerce continues to grow, the amount of returns is expected to cost retailers more than a trillion dollars a year.
Finding that special niche
Some retailers simply can’t compete on price; their margins are too narrow for a race to the bottom. They’re finding workarounds that tap into their unique selling propositions.
For example, some goods or services are locally sourced or made, while others might offer flexible payment options to sweeten the deal. Exceptional customer service is another way brands can differentiate themselves.
Each retailer must go back to the drawing board to find their special something that might lure shoppers in if they can’t compete on price.
Personalized retail experiences: Run ahead of the pack
Find out how adidas and other brands are creating personalized CX to connect with customers for better engagement and ultimately, more sales.
Overcoming e-commerce challenges
Retailers can combat these challenges by setting realistic expectations early in the season and focusing on delivering customer service that echoes this from the start.
Every single channel needs to be in sync this holiday season and offer personalized elements to provide a differentiated and cohesive customer experience.
