The Online Retail Christmas Effect

ChannelGrabber provide online retailers with an integrated, sophisticated yet easy to use suite of software tools that enable them to more easily manage their ecommerce listings, orders, inventory, billing, shipping and messaging. ChannelGrabber technology manages vast numbers of online transactions each and every day and this gives us a unique perspective on our customers’ business.

In the latest in our series of guides to doing better e-business, we explore the “Top 5 Facts you Need to Know About the “Christmas Effect” and help you to prepare your online business for bumper sales and a more successful holiday season in 2017.

Fact 1

Christmas starts
sooner every year

Christmas starts sooner every year

Fact 2

Amazon sales increased
more than eBay's

Amazon sales increased  more than eBay's

Fact 3

Sales boomed on Black Friday,
but this was not the best week for sales

Sales boomed on Black Friday,  but this was not the best week for sales

Fact 4

Amazon really knows how to
leverage Seasonal Sales!

Amazon really knows how to  leverage Seasonal Sales!

Fact 5

Sales fell so much by December 20th
you could have taken a holiday

Sales fell so much by December 20th  you could have taken a holiday

Conclusion

  • Christmas starts in SeptemberPrepare accordingly! Planning your stock and supplies well in advance this year will allow you to fully exploit the Christmas Effect and ensure you don’t run out of those key product lines at the peak of the buying frenzy. You should start increasing the stock you hold mid-September and gradually ramp up

  • Amazon sales increase more than eBay’sAmazon invests heavily in seasonal marketing and demand generation, so if you’re considering selling there, make sure your products are listed in time to benefit from this increase in traffic.

  • Don’t put all your eggs in one basketBlack Friday may be the single largest sales day on the calendar, however looking at the week overall the following weeks are higher. Instead of slashing prices to maximise Black Friday sales you should focus instead on a longer more sustained campaign over the entire Christmas period. You won’t run into as many logistical problems and your profit margins will thank you!

  • Don’t ignore the Prime EffectSales growth continues on Amazon right up until December 20th. We believe this is down to the ‘Amazon Prime Effect’ as Amazon guarantees delivery dates for Prime subscribers, giving them confidence items will arrive before Christmas. If you want to take advantage of sales in this period, utilising Amazon FBA and placing some stock in their warehouse is the way forward.

  • Take a holiday, this is the best time to do so!It is no understatement to say that sales fall off a cliff. What’s most interesting is that this happens on December 20th. This is a lot earlier than we expected, but after this point your sales will be worse than an average day at any other time of the year, and sales will stay this suppressed well into the new year. TAKE A HOLIDAY this Christmas and place your accounts into holiday mode to stop taking orders. Your business won’t suffer as a result, and your mental health and family will be grateful for it.