Christmas is a key date to increase your e-commerce sales, but you must have a proper strategy to maximise profit. You need to remember that every year Christmas sales start earlier than the year before, and that a high percentage of consumers make their purchases online. Specifically, in 2020 online sales increased 50% worldwide during December. In addition, possible supply and demand problems are expected to affect the 2021 Christmas campaign. Therefore, it is vital to get your e-commerce business ready early and design a suitable pricing strategy to attract users’ attention. From Minderest we explain the factors you need to consider when you’re preparing for the Christmas season.
As a starting point it is interesting that according to Google’s 2021 Retail Playbook, searches related to purchases tripled in the fourth quarter of 2021. This indicates that traffic towards your e-commerce site can be significantly higher at this time of year. It also highlights the importance of having the necessary technical resources and a good engagement campaign. Let’s start with the latter and the importance of pricing.
Adapt your pricing strategy to increase Christmas sales
As part of your Christmas customer engagement strategy, you need to have eye-catching prices. This will help attract consumers to your e-commerce site and speed up their final purchase decision. The most effective pricing techniques include:
- Launching customised discount campaigns targeted at specific target markets.
- Creating promotions exclusively for the Christmas period: 2 for 1, discounts for buying a second item, etc.
- Changing shipping conditions, offering users free shipping only during December.
- Implementing purchase-reward schemes aimed at the brand’s most loyal customers.
Promoting all of these initiatives among users will encourage them to access the web. You can use email marketing and social networks with organic and paid posts. Spend time designing these marketing campaigns to make them as attractive as possible. Your competitors will also be trying to increase their traffic and conversion rate.
Alongside these advertisements, internally review your catalogue prices and purchase volume and identify which products you can price to achieve greater profits, without affecting demand. This allows you to offset the discount applied to other items. You can use automated repricing tools to help optimise this process.
Other strategies to implement in your e-commerce business at Christmas
In addition to prices, the image of the online shop itself and the user’s shopping experience also condition their final purchase decision. This is even more true when they are looking for the perfect gift. Accordingly, you can weigh up implementing the following actions or improvements:
- Check that the website is technically able to support higher traffic volume.
- Optimise the e-commerce site so that it works smoothly on mobile devices.
- Dress up the website with Christmas decorations.
- Create a gift section to make recommendations to customers based on their needs. Get inspiration from the Amazon Gift Guide.
- Improve the shopping experience by simplifying checkout and activating new payment methods.
- Improve customer service.
If possible, use the Christmas momentum to expand your catalogue with new products or new exclusive collections that generate a greater sense of urgency for consumers. Always make sure that you have enough stock to respond to the expected increase in demand during the Christmas season. At the same time, monitoring the competition’s prices is essential to keep up to date with what they offer to users. This enables you to anticipate their movements, since Christmas is highly competitive between different companies in each sector. Rely on price tracking software to optimise your productivity.