51ÊÓƵ

Your first holiday sale isÌýaÌýlot like aÌýfirst date: excitingÌý— possibly overwhelmingÌý— ²¹²Ô»åÌýitÌýcan definitely keep you upÌýatÌýnight. “What ifÌýmyÌýdeals aren’t good enough? What ifÌýmyÌýads don’t work? What ifÌýmyÌýproducts don’t ship onÌýtime?”

Holiday sales are intimidating. That’s why we’ve got aÌýfew lessons toÌýhelp you stay cool this holiday sales seasonÌý— noÌýsnow required.

Below are theÌýtop 8Ìýmost common mistakes merchants make when managing their first holiday sale. Steer clear ofÌýthese, ²¹²Ô»åÌýyou’ll beÌýstuffing your customer’s stockings with shiny new toys ¾±²ÔÌýno-timeÌý— noÌýchimney break-ins required.

1.ÌýNot Enough Inventory

IfÌýyou’re serious about getting theÌýmost from your Black Friday/Cyber Monday deal, make sure you stock upÌýonÌýplenty ofÌýproducts. Otherwise, you may disappoint more than your customers when those “out ofÌýstock” messages pop upÌýsooner than anticipated.

It’s hard toÌýestimate atÌýtheÌýexact right stock quantities forÌýyour first Black Friday sale, but that doesn’t mean you can’t make aÌýpretty educated guess. Here’s aÌýmethod you can use toÌýhelp calculate your average safety stock level.

(Maximum daily product purchases XÌýmaximum time toÌýmake product)Ìý— (average daily product purchases XÌýaverage time toÌýmake product) =Ìýsafety stock

For example, maybe you sew handmade tote bags. You sell three bags aÌýday onÌýaverage ²¹²Ô»åÌýitÌýusually takes you four days toÌýsew one bag (including theÌýtime invested toÌýbuy fabric). IfÌýyour supplier runs out ofÌýfabric, itÌýtakes anÌýadditional two business days toÌýget more, making your maximum time toÌýcomplete one product six days. Last month, you had aÌýspecial offer forÌýstudents which increased your order count byÌýone bag per day, making your maximum daily product purchase four.

(4Ìý³ÝÌý6)Ìý– (3Ìý³ÝÌý4)Ìý=Ìý24Ìý– 12Ìý=Ìý12

This means you need toÌýhave twelve bags stocked ²¹²Ô»åÌýavailable atÌýanyÌýone time. This isÌýyour safety stock, ²¹²Ô»åÌýitÌýprotects you from running out ofÌýproducts ifÌýsomething goes wrong (aÌýsupplier isn’t available, you get more orders than anticipated, etc.)

Elizabeth, owner ofÌýtheÌý51ÊÓƵ store , says:

Take stock ofÌýyour inventory early (ideally around theÌýend ofÌýOctober/early November), ²¹²Ô»åÌýmake sure you have enough material ²¹²Ô»åÌýpackaging supplies toÌýsee you through theÌýholiday season. Don’t forget all theÌýlittle things you use, such asÌýsticky labels orÌýrolls ofÌýpacking tape forÌýexampleÌý— these simple things can easily beÌýforgotten until you run out!

2.ÌýIgnoring Shipping Deadlines

Shoppers want their purchases toÌýarrive onÌýtimeÌý— ²¹²Ô»åÌýthat’s doubly-true ifÌýthey’re shopping forÌýgifts forÌýtheÌýholidays. Courier services tend toÌýbeÌýoverloaded during theÌýholiday season ²¹²Ô»åÌýdelivery times often lag theÌýcloser itÌýgets toÌýcertain holidays.

ToÌýavoid customers receiving their new Christmas sweaters onÌýValentines Day, shipping providers set deadlines forÌýguaranteed on-time delivery. Once theÌýdelivery deadline has passed, couriers can noÌýlonger guarantee that anÌýorder will arrive onÌýtime. Make yourself ²¹²Ô»åÌýyour customers aware ofÌýanyÌýdeadlines your shipping service may have toÌýset theÌýright expectations ²¹²Ô»åÌýhelp customers better plan their purchases.

3.ÌýSpending Advertising Budget Too Fast

Did you know that costs-per-click ¾±²ÔÌýGoogle Ads ²¹²Ô»åÌýFacebook jump upÌý2-3x during theÌýholiday season? AtÌýthat rate, you could easily burn through your advertising budget ¾±²ÔÌýtheÌýfirst few days ofÌýyour campaigns, limiting adÌývisibility ²¹²Ô»åÌýcampaign effectiveness.

Advertising system forecasts predict user-activity based onÌýhistorical data like average number ofÌýsearches ²¹²Ô»åÌýclicks over theÌýprevious months. These can beÌýmisleading stats going into theÌýholiday sales season where consumer behavior isÌýmore erratic than previous months.

Instead ofÌýlooking atÌýdata from theÌýlast few months, look atÌýdata from theÌýprevious holiday season. AÌýservice like can show you how much searches forÌýproducts like yours grew during theÌýholidays, ²¹²Ô»åÌýtheÌýnumber ofÌýclicks ²¹²Ô»åÌýcosts will have increased accordingly.

IfÌýbidding forÌýsearch terms makes you uncomfortable orÌýyou don’t have time toÌýmonitor your campaigns, try 51ÊÓƵ’s automated advertising solutions forÌýGoogle Ads.

You can also promote your deals through owned channels like email marketing ²¹²Ô»åÌýcontests onÌýsocial media orÌýuse aÌýportion ofÌýyour budget toÌýparticipate ¾±²ÔÌýanÌýoffline holiday market.

IfÌýyou doÌýplace ads onÌýsearch engines ²¹²Ô»åÌýsocial networks, target your audience correctly ²¹²Ô»åÌýwrite creative copy toÌýencourage more clicks.

4.ÌýCopying Other Merchants

After aÌýwhile, holiday promotions can start toÌýfeel aÌýlittle redundant. How many times can you realistically see “50% off! SHOP NOW!!!” before you just stop caring?

You’ll need toÌýget creative ifÌýyou want toÌýwin theÌýattention (and dollars) ofÌýholiday shoppers.

Learn more about gamification onÌýtheÌý51ÊÓƵ E-commerce Show.

And don’t forget toÌýtailor your messaging forÌýyour audience. For example, ifÌýyou sell shoes ²¹²Ô»åÌýyou’re targeting past customers, you can acknowledge their previous experience with your brand byÌýasking them toÌýsend aÌýphoto ¾±²ÔÌýtheir original pair ¾±²ÔÌýexchange forÌýaÌýdiscount. Whatever you decide, remember toÌýkeep theÌýconditions easy ²¹²Ô»åÌýtheÌýdiscount attractive.

5.ÌýDiscounting theÌýWrong Product

You may beÌýtempted toÌýuse theÌýholiday season toÌýget rid ofÌýold products that aren’t selling. But ifÌýthose products don’t make good gifts, they’re unlikely toÌýwork asÌýtheÌýbackbone ofÌýyour sale either.

IfÌýyou really need toÌýclear out unpopular stock, choose aÌýsofter strategy, like:

• Offering discounts forÌýpopular products, then use theÌý“You May Also Like” section onÌýthese product pages toÌýpromote theÌýitems you’re trying toÌýsell off
• °¿°ùÌý³¦´Ç³¾²ú¾±²Ô¾±²Ô²µ best-sellers with less popular products ¾±²ÔÌýgift sets.

6.ÌýCutting Prices Too Much

Each year, holiday discounts get more aggressive. These price wars can beÌýnext-to-impossible toÌýwin forÌýsmall businesses.

But ifÌýsomeone throws their products away, that doesn’t mean you should doÌýtheÌýsame. Profitable discounting isÌýimpossible without doing some math.

Check out theÌýtable below. Find theÌýgross margin ofÌýyour product ¾±²ÔÌýtheÌýleft column, then find theÌýcolumn that shows your price decrease. Where theÌýtwo numbers intersect isÌýaÌýnumber that shows how many more units you have toÌýsell asÌýaÌýresult ofÌýaÌýprice decrease toÌýmaintain theÌýsame gross profit.

7.ÌýManipulating Your Prices

Whether it’s aÌýsimple mistake orÌýanÌýintentional misdirection, discounted prices aren’t always what they appear. Even big brands have been busted forÌýplaying price games with their customers.

Some ofÌýtheÌýmost common price cheats include:

• Raising prices aÌýcouple ofÌýdays before aÌýsale, then cutting them back toÌýtheÌýoriginal price with theÌýsale tag.
• Exaggerating aÌýsale: forÌýexample, ifÌýaÌýsign says “up toÌý70% off,” but theÌýaverage discount throughout theÌýstore isÌýonly about 20%.
• Misleading discount terms: forÌýexample, aÌýstore offers aÌýflat $20Ìýoff, but when theÌýcustomer tries toÌýcheckout, they learn that it’s only available with aÌýpurchase ofÌý$100ÌýorÌýmore.

Misleading customers obviously isn’t something we’d recommend trying. You might win aÌýfew extra dollars ¾±²ÔÌýtheÌýshort-term, but theÌýrisks definitely aren’t worth theÌýreward. The internet never forgets, ²¹²Ô»åÌýifÌýyou get caught cheating, itÌýcan beÌýdifficult toÌýuntarnish your brand’s reputation.

8.ÌýNot Getting Your Online Store Ready

AÌýgood sale can lead toÌýaÌýpretty sizable increase ¾±²ÔÌýwebsite trafficÌý— which isÌýaÌýgood thingÌý— but itÌýcan also bring with itÌýaÌývariety ofÌýnew challenges you probably don’t encounter ¾±²ÔÌýyour normal day-to-day, like decreased website load times orÌýeven aÌýpayment service failure.

So, atÌýaÌýminimum, you’ll want to:

• Optimize product images toÌýspeed upÌýwebsite load times.
• Connect additional payment methods ¾±²ÔÌýcase ofÌýservice failures.
• Employ anÌýassistant who will answer clients’ questions via chat orÌýover theÌýphone.
• Make sure that your web hosting, domain name, email service, ²¹²Ô»åÌýall other services are paid forÌý¾±²ÔÌýadvance toÌýavoid losing access during sale time.

±õ²ÔÌý³§³ó´Ç°ù³Ù…

The holiday sale isÌýaÌýbig project that requires aÌýlot ofÌýplanning. But even ifÌýyou plan everything perfectly, that doesn’t mean itÌýwill work out that way. Don’t panic. Just roll with theÌýpunches, optimize where you can, ²¹²Ô»åÌýremember those lessons forÌýnext year.

Elizabeth atÌýCloud 9ÌýDesign advises:

You can even rope your kids into doing some basic prep forÌýyou, such asÌýsticking postage labels onÌýall your envelopes, assembling aÌýbatch ofÌýdispatch boxes, orÌýcutting strips ofÌýribbon toÌýsize. Prepare aÌýfew standard customer inquiry responses asÌýtemplates now. ItÌýwill save soÌýmuch time being able toÌýreply toÌýemails byÌýsimply editing aÌýtemplate rather than starting each response from scratch. It’s surprising how time-consuming these little tasks can beÌýwhen you have more urgent things that need your attention ¾±²ÔÌýtheÌýmidst ofÌýChristmas chaos.

WeÌýwish you theÌýbest ofÌýBlack Friday sales.

Ìý

• AÌýFoolproof Advertising Strategy forÌýtheÌýHoliday Season
• Getting Your E-commerce Store Ready forÌýChristmas ²¹²Ô»åÌýNew Years
• Getting Your Ecommerce Shop Thanksgiving Ready
• BFCM: 22ÌýEcommerce Tips forÌýYour Holiday Marketing Campaigns
• The Essential Guide toÌýHoliday Promotions forÌýEcommerce Stores
• 8ÌýBlack Friday Pitfalls First-Time Sellers Should BeÌýAware Of
• What You Need toÌýOpen aÌýPop-Up Shop This Holiday Season
• Best Practices For Ecommerce Shipping During The Holiday Season
• Best Practices forÌýaÌýSuccessful Holiday Season: 5ÌýDo’s ²¹²Ô»åÌýDon’ts