The COVID-19 pandemic has boosted the shift to online shopping, especially during the lockdown, while numerous social distancing measures had a disruptive impact on traditional shopping. However, the rise of e-commerce occurred long before the onset of the healthcare crisis. According to Statista, the holiday season sales reported by e-commerce companies have been growing steadily in the US since 2016, and they will likely continue to grow for several more years. Recent forecasts indicate that online sales for the holiday period will increase by about 2.5% year-over-year in 2022.
This is not surprising, considering that 2022 may be the first year in recent times when American shoppers will be able to enjoy the holidays without worrying about the healthcare crisis. However, recent problems, such as inflation, high energy costs and Russia’s unjust invasion of Ukraine, could prove equally concerning for e-commerce retailers and customers in the US. It remains to be seen whether shopping events like Black Friday and Cyber Monday will capture the interest of American shoppers, and whether the predictions pointing to growth will ultimately prove to be correct.
Until then, both traditional retailers and online stores should consider these five useful strategies to boost their holiday sales.
Use Recent Forecasts to Predict Future Trends
Not only do Statista’s latest forecasts show that online holiday sales are likely to grow 2.5% year-over-year in 2022, but other forecasts also point to positive results. According to the National Retail Federation (NRF), holiday sales, including e-commerce, will rise between 6% and 8% during the last two months of the year. However, it is also important to note that while the projected growth rate is positive, it is still rather modest when compared to the 13.5% jump in 2021, and the 9.3% increase seen last year. The data suggests that e-commerce retailers should be cautiously optimistic when preparing their holiday strategies.
Create Discounts to Compensate for Inflation
Inflation is undoubtedly one of the most critical economic issues affecting the US, as well as many other countries around the world. Although inflation in the US has fallen to its lowest level since January, prices have already increased dramatically since the beginning of this year. Many American families are already struggling to make ends meet, so it’s no surprise that big discounts and promotions may be necessary to encourage shopping. Another aspect that e-commerce retailers should probably consider is the fact that more and more Americans have started shopping at discount stores in 2021.
Use Social Commerce to Boost Sales
According to the recent Shopify eCommerce Market Credibility Study, one of the most important trends online retailers should consider this year is the rise of social commerce. Social e-commerce trends are now playing leading roles in online shopping, and data suggests they may become even more essential for consumers in the future. This is precisely why numerous brands around the world are now investing in video and live shopping. Moreover, the study also shows that direct-to-consumer (DTC) companies are investing in building online communities to make their brands appear more friendly, increase customer loyalty, and reduce other advertising costs.
Raise Awareness for Black Friday and Cyber Monday
Black Friday and Cyber Monday are undoubtedly the most important shopping events of the year, and they are also the most important periods to maximize holiday sales. According to SaleCycle, however, raising awareness is now essential for successful Black Friday and Cyber Monday campaigns. Offering early access to discounts and promotions might be a good idea that could help e-commerce retailers boost loyalty among returning customers. Some retailers have already decided to reward their returning or subscribed customers with access to sales a couple of days before Black Friday. They may inspire others to follow their example.
Extend Black Friday and Other Sales Promotions
According to NBC News, Black Friday is no longer a single day shopping event dedicated to big discounts and special deals. Like so many other marketing strategies and events, Black Friday has been disrupted by the numerous changes people have experienced in recent years, and it evolved to become a months-long promotional period. Now that people in the US and abroad are more excited about sales and discounts, a growing number of retailers have decided to extend the event even further in 2022. This year’s deals have started as early as October, giving shoppers more time to shop than ever before.
