By Tonya White on Sep 22, 2023
As the holidays approach, many retailers and ecommerce stores are running online flash sales. Expect to see a lot of flash sales on Black Friday and Cyber Monday. Many people wait for them to do a lot of their holiday shopping or to make major purchases such as TVs and computers. But you can run them at any time of the year.
Flash sales are a tried and true method to create urgency and increase sales. When executed well, flash sales can help business owners achieve multiple goals.
If you sell or shop online, you are no stranger to online sales. But flash sales are a beast of their own. Here’s the earmarks of a flash sale:
• Short duration: Flash sales rarely last more than two days max. they may just last a day or even just a few hours. They are of much shorter duration than the usual sale. This creates urgency, because customers need to act immediately or lose their opportunity. Typically, the shorter the flash sale, the better the deals.
• Eye-popping deals: Flash sales offer steep discounts and great deals that generate excitement and motivate people to buy. In addition to the short time span, the big discounts also create urgency, because your customers know it’s going to be a long time before they see such great deals again.
• Limited products: Flash sales are usually not store-wide. Because discounts are steep, flash sales are generally just limited to certain products. By offering only products where you have either excess inventory or special, limited inventory, you protect your margins.
Let’s dive deeper into the benefits of flash sales. It’s not too late to plan one for holiday shoppers.
There’s little doubt that flash sales are extremely effective, On average, they increase transaction rates by 35%. Not only do people buy the great deals, but while they are on your site, they also buy items that are not on sale. A flash sale will drive buyers to your site, and it will also increase the average order rate.
In 2022, consumers spent over $11 billion in online sales on Cyber Monday and $9.12 billion for Black Friday. From 2021, sales increased from 5.8% for Cyber Monday and 2.3% for Black Friday.
Fear of missing out on limited time, deep discount sales motivates increase buying. So, beyond the holidays, flash sales can also be a great way to boost sales during slow periods.
Of course, you need to set a strategy about what you are selling and for how much. After all, if you are deeply discounting an item, your margins are much lower on it.
Flash sales give you a very attractive hook in your marketing. The steep discounts and short timeline should drive increase traffic to your site. Once people come to your website, you can sign them up to your email list as well as sell your products.
Flash sales can benefit your business beyond the event itself, because they increase visibility and brand awareness. Get them to your site with extensive marketing about your flash sale, and they will start exploring what else you have to offer, and keep you in mind for the future.
Flash sales can bring in new customers who are looking for great deals. Though solely price-based customers can be fickle, you can still build your client base and create repeat buyers with strategic post-purchase marketing.
Marketers often think of flash sales as a way to attract new customers who are motivated by price. Price-motivated customers are not usually the most loyal.
However, you can build loyalty of existing customers with flash sales by offering exclusive access to only your loyal VIP customers. People love to be on the inside and appreciate being rewarded and made to feel special.
It’s important to strategically choose what inventory to put on sale during a flash event. Flash sales are a great way to move excess inventory or inventory that is going obsolete. Then you can restock with products it’s easier for you to move. You might also want to get some kind of limited product in just for the sale.
Once you attract customers with a flash sale, use it so cross-sell and upsell to items that aren’t on sale. If a line of purses is on flash sale, make sure to feature the matching shoes that are regular price. If a returning customer comes to your site, here’s your chance to show them inventory you know they will like due their past behaviors.
Compared to longer lasting store wide sales, flash sales are relatively easy to do. So, if you are thinking about doing one, give it a try!
This article discusses why you should consider flash sales. Our next article will give you tips on how to implement flash sales to create urgency and increase sales.
In the meantime, if you need help implementing flash sales or any kind of promotions contact Umbrella Local for a free consultation through our website or call us at (646)440-1426.
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