You’re well-prepared, with the correct liability insurance and a well-stocked warehouse. It’s never too soon to double-check that everything is in order, no matter how well-organized you may be. Let’s look at three of the biggest eCommerce sellers’ pitfalls and how to avoid these as the countdown begins to the year’s biggest shopping days.
But first, the numbers behind Black Friday and Cyber Monday sales
Black Friday and Cyber Monday have become two of the biggest days in the eCommerce calendar. Last year, 88.5 million Americans spent $8.9 billion on Black Friday.
Cyber Monday, the three-day shopping event that follows Black Friday, offers even more excitement: last year, shoppers spent $10.7 Billion on Cyber Monday. The peak was $12 Million per minute at the busiest time (11 pm-12 am ET/8 pm-9 pm Pacific Time).
The level of consumer spending is a windfall for eCommerce sellers. They can quickly boost their revenue to the black and start building their brand in 2023.
It doesn’t necessarily mean that everything will be smooth sailing.
We’ll examine the three most common holiday traps and show you how to avoid them.
Not Being Adequately CoveredInsurance is not glamorous, so it’s easy to overlook it. But it’s vital. It’s not worth having the wrong eCommerce Insurance (or none!) If a customer successfully claims you, it can wipe out the entire eCommerce business.
Amazon requires vendors to have Amazon seller insurance if their sales exceed $10,000 in a month. Amazon must be covered as an “additionally insured” party, and the policy should carry at least $1,000,000 of coverage.
A good policy will cover you if you sell a product to a customer and they are injured or their property is damaged. Two factors determine the cost of a policy.
First, determine how likely it is that your product will cause damage. Some products are more dangerous than others. Any product with an electronic component has the potential for malfunctioning and starting a fire. A knitted toy, on the other hand, is likely to be safe.
Second, how many units do you sell of each product (known as “exposure”)? If your product has a one-in-1,000,000 chance of causing an accident, you will only have one if you sell 100 or ten units. It’s likely to happen if you sell one million units. This is why having the right insurance at this time of the year is so important. As your sales increase, so will your exposure.
Spott can provide you with a quote that is tailored to your needs as an online seller.
Stock Management: How to Avoid Mismanagement
It’s frustrating to have customers visit your website and want to purchase, only to be thwarted because you’ve put ‘out-of-stock’ tags on all your products. Tags that said “out of stock” were eight percent higher on Cyber Monday last year than last week (November 22). The bigger picture shows that the figures were up by 169 percent compared to 2020 and 258 percent over 2019. This shows that the pandemic significantly impacted the supply chain, which is still not fully resolved.
In the past, eCommerce sellers calculated their “safety stock” — the amount they should keep in excess to ensure they have enough stock — by using the formula below:
Safety stock = (maximum daily unit purchase X maximum production time) –(average daily unit purchase X average production time)
Stay in touch with your suppliers to increase their resilience to cover supply chain disruptions.
Don’t forget packaging when planning your Black Friday/Cyber Monday sales. You should have enough tape, stickers, or tissue paper to package the products to the standards that your customers expect. Running out of boxes is the only thing worse than running out of stock.
Failure to build trust
Black Friday/Cyber Monday is a great time to convert leads. With so many people looking for new products and companies to delight themselves and their families, it’s the best way to get new customers.
First impressions are essential for eCommerce sales. Online shoppers are becoming more aware of the potential dangers of online shopping. These new leads are looking to see if your product is disappointing or if there are any scams. They can easily click on your competitors.
Create instant trust among new customers by putting product reviews and testimonials on each product page and your main page. This will give potential customers peace of mind that what they see on screen is precisely what they receive.
In the lead-up to Black Friday/Cyber Monday, you can build trust by running a targeted social media campaign. Invite your loyal customers to submit photos of their products or testimonials on social media.
Even better, create a community ahead of time of loyal customers who will act as ambassadors for your brand during the holiday season. Facebook groups can be an excellent tool for getting people talking and creating buzz about specific products.