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Black Friday Cyber Monday (BFCM): The Heartbeat of E-Commerce Business Health
Undoubtedly, the most significant peak in e-commerce seasonality is the year-end holiday season.
Starting with Black Friday and Cyber Monday 🚀and extending through Christmas 🎄, ecommerce experiences an explosive surge in sales.
Consumers are searching for deals, often completing their holiday shopping lists.
This period can account for up to 30% or more of all annual sales for some businesses.
Understanding these seasonal trends is critical for your e-commerce success.
Let’s deep dive 👇️
The Pulse
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The Rise of Creator Marketing
The Acquisition Channel that ASOS and Farfech use to yield 10x ROI
From e-commerce to software, more and more brands are now leveraging creators to increase their sales.
Why? Because pay-per-click ad costs are running high, and people trust people more than ads.
E-commerce brands see 10x ROI when hiring creators with an established audience. Look at Asics, HelloFresh, and FarFetch, which all use affiliates as key revenue channels.
With Upfluence, you can seamlessly search and communicate with creators (even draft messages with ChatGPT compose), send and approve briefs, ship, and track products, create custom codes, manage payments, and track sales and ROI.
The best part? You do it all without leaving the software.
The Deep Dive
The e-commerce calendar 🗓️ is dotted with events and holidays, each bringing its own flavor and opportunities.
None have quite the same impact as the Black Friday Cyber Monday (BFCM) weekend.
For many e-commerce businesses, this period can be the barometer of their annual performance and a critical component of their overall business health.
Let's delve into the origin of BFCM and its significance for the e-commerce landscape.
The Origins: From Brick-and-Mortar to Digital Dominance
Black Friday, the day after Thanksgiving, has its roots in brick-and-mortar retail. Historically, it signaled the beginning of the Christmas shopping season.
Retailers would offer heavy discounts, drawing massive crowds and thereby pushing their sales numbers 'into the black' (meaning profitable).
With the digital revolution, Cyber Monday emerged as the online counterpart to Black Friday. Positioned on the Monday following Thanksgiving, it was conceptualized to encourage people to shop online.
Over the years, the distinction between Black Friday and Cyber Monday has blurred, with both days now being equally significant for both physical and online retailers.
BFCM: A Litmus Test for E-Commerce
For e-commerce businesses, the BFCM weekend has become more than just a sales event. It's a litmus test for various aspects:
Consumer Trust: A successful BFCM can indicate that customers trust the brand. High sales volumes suggest that customers are confident in making significant purchases.
Operational Efficiency: The ability to handle BFCM traffic, fulfill orders promptly, and manage customer service inquiries effectively can reveal the operational health of a business. Or help shine a spotlight on what needs to be worked on moving forward.
Marketing Prowess: The effectiveness of BFCM marketing campaigns, from email blasts to social media promotions, can provide insights into a brand's marketing strengths and weaknesses.
A Numbers Game: Impact on the Bottom Line 💰
BFCM's influence on an e-commerce business's bottom line cannot be overstated. For many businesses, especially retail ones, the BFCM weekend can account for up to 30% of their annual sales.
This influx can provide the necessary capital for investments, expansions, or even maintaining operational costs during slower periods.
The sheer volume of transactions during this period also means that even with discounted prices, the overall profit margins can be substantial due to economies of scale.
The world of e-commerce is dynamic, ever-evolving, and, importantly, deeply influenced by seasonality. This requires proper planning to maximize these very predictable trends.
It seems in the past few years now, the fourth quarter buying season extends into the first couple weeks of January. So don’t rest too early, and you can keep the payday going if you work it.
The Double-Edged Sword: Challenges of BFCM
While BFCM presents numerous opportunities, it also comes with its set of challenges:
Operational Strains: The sudden surge in traffic and orders can strain systems. Website crashes, payment gateway issues, or fulfillment delays can harm a brand's reputation.
Margin Pressures: While high volumes can boost profits, striking the right balance between discounts and profitability is always challenging.
Customer Service Overload: With increased sales come increased inquiries, complaints, and returns. Handling this surge efficiently is crucial to maintaining customer trust.
Adapting to the Changing Face of BFCM
The traditional model of BFCM, with its door-busters and midnight sales, is evolving. With the growth of e-commerce, the BFCM sales period has extended.
Pre-BFCM sales begin weeks in advance, and post-Cyber Monday deals can extend into December.
Consumers are also becoming more discerning. They're not just looking for discounts; they want value.
This shift requires changing e-commerce strategies, focusing on bundled offers, exclusive products, or value-added services.
Furthermore, with the global reach of e-commerce, BFCM is no longer a primarily Western event.
Store owners worldwide are adopting this sales phenomenon, making BFCM a global e-commerce extravaganza.
For you to be prepared, I will share swipe and deploy marketing assets next week on Friday.
Conclusion
The Black Friday Cyber Monday weekend is undeniably a cornerstone of the e-commerce calendar.
Its significance goes beyond just sales numbers—it indicates business health, operational efficiency, and brand strength.
As with everything in the dynamic world of e-commerce, businesses must adapt, innovate, and evolve their BFCM strategies to stay ahead of the curve.
Those who do will survive and thrive, turning this whirlwind weekend into a springboard for year-round success.
To your continued growth and success 🏆️
Matthew.
Matthew Stafford is the CEO and managing partner of Build Grow Scale and has been consulting and growing successful, well-known e-commerce brands for the past ten years. With nearly one billion in e-commerce revenue through our partner stores and student checkouts, I always aim to bring you the best information about what is working now in the e-commerce landscape.
https://buildgrowscale.com/ecom-profit-bootcamp
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