Preparing for Black Friday: A Five-Point Checklist for E-Commerce Success
As the leaves turn and the air grows crisp, retailers and consumers alike begin to circle November 29 on their calendars: Black Friday. This annual shopping extravaganza is not just a day; it’s a pivotal moment in the retail calendar, marking the unofficial start of the holiday shopping season. Joelle Mullin, Awin’s partnership development director, offers a five-point checklist to help e-commerce businesses maximize their success during this critical time.
Your Peak Plan: Strategic Recommendations
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Optimize for Mobile
With mobile sales accounting for a staggering 69% of total e-commerce transactions in 2023, ensuring a seamless mobile shopping experience is paramount. Retailers should prioritize mobile optimization, making navigation, checkout, and payment processes as user-friendly as possible. If your brand has a shoppable app, app attribution becomes essential to track and engage customers effectively across mobile platforms. -
Embrace Omnichannel Retail
The trend of in-store shopping during Black Friday is on the rise, with 44% of consumers making in-store purchases last year, according to Mintel. To capture a wider audience, brands should integrate online and offline strategies. This could include card-linked offers, geo-targeting for customers shopping in physical stores, and creating a cohesive experience that bridges the gap between digital and brick-and-mortar. -
Plan for Promotions
With many retailers launching deals earlier in the season, it’s crucial to strategize your promotions to stand out. Awin reported that 56% of sales during Black Friday 2023 were generated through voucher codes. Crafting unique offers that entice shoppers who may have already begun their holiday shopping can help your brand capture attention and drive sales. -
Focus on Customer Retention
In a climate of tighter margins and increased advertising costs, building customer loyalty is more important than ever. Enhance your marketing efforts to encourage repeat business. Brand partnerships can be a powerful tool for boosting customer loyalty, especially when they offer value-added rewards at checkout. Additionally, subscription models are gaining traction, providing an opportunity for sustained engagement and long-term retention. - Maximize Growth with Affiliates
Affiliate marketing continues to outperform traditional e-commerce channels, making it a vital component of your Black Friday strategy. Diversifying your affiliate partnerships—from comparison shopping services (CSS) to influencers—can enhance your reach and return on ad spend (ROAS). This channel is not only effective for driving traffic but also for boosting sales during peak shopping periods.
Peak Considerations: Key Factors to Keep in Mind
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A Second Prime Day in October
This year, October is expected to feature another Amazon Prime Day, which could shift consumer spending patterns. While this event may distribute holiday spending more evenly, it could also impact Black Friday sales figures. Retailers should be prepared for this potential change in consumer behavior. -
The Timing of Black Friday
This year, Black Friday falls later in November, coinciding with many consumers’ paydays. This timing could lead to increased spending as shoppers have more disposable income available. Brands should consider this when planning their marketing and promotional strategies. -
Supplementary Strategic Peaks
Last year saw significant sales spikes on ‘Fake Friday’ (the Friday before Black Friday) and Singles’ Day on November 11. Retailers should view these days as key opportunities to capture early shoppers and enhance overall monthly sales. - Rising Consumer Confidence
Consumer confidence is gradually improving, reaching a near three-year high. This positive sentiment could stimulate spending, although the impact of interest rates in 2024 remains a crucial factor to monitor.
Learning from Last Year: Insights and Trends
Reflecting on the previous year’s performance can provide valuable insights for planning this year’s Black Friday strategy. In 2023, the UK retail sector experienced a 7.3% increase in Black Friday sales, totaling £13.3 billion. Notably, the affiliate channel outperformed traditional e-commerce, with overall retail revenue rising by 8.8% year-on-year and a 10% surge in revenue specifically during Black Friday.
However, 2024 presents a different landscape. Year-to-date growth has slowed to 3%, a significant drop from the previous year’s robust performance. This raises questions about whether we can expect a repeat of last year’s success.
The Retail Sector in 2024: Current Trends
The retail environment in 2024 is characterized by mixed signals. Online retail now constitutes 26.2% of total sales, according to the Office for National Statistics, with this figure surging during peak trading periods. In November 2023, online sales reached 30.7%, underscoring the importance of a strong e-commerce strategy for Black Friday.
Top-performing sectors last year included electronics, health and beauty, and home and garden, all of which experienced double-digit growth. However, 2024 has seen a downturn in these categories, with health and beauty and home and garden both down by 4% year-to-date. This shift could significantly impact overall performance during the peak event.
The Affiliate Channel: A Crucial Component of Your Strategy
Having joined Awin in 2010, Joelle Mullin has witnessed the affiliate channel’s growth and evolution. As partnership development director, she emphasizes the importance of adapting to the changing retail landscape. Despite a slower growth rate earlier in the year, there are positive indicators for Black Friday 2024. Mullin predicts a 4.5% increase in revenue, reflecting a modest growth trend compared to the current year-to-date performance.
As we approach Black Friday 2024, leveraging affiliate marketing will be essential for success. This strategy not only enhances online retail efforts but also supports mobile and in-store initiatives, helping retailers maximize performance across all channels.
For brands looking to navigate this peak season effectively, Awin offers support and resources to optimize your strategy and drive success.