BFCM Trends and Statistics for eCommerce Businesses

Prepare your storefronts for 2023 by staying informed about Black Friday trends and Cyber Monday statistics that businesses should be aware of.

DID YOU KNOW?

On Black Friday and Cyber Monday in 2022, daily sales orders experienced a remarkable 44% surge. However, the sales order turnover showed a more modest increase of 3.8% from Q3 to Q4 in the same year.

Notably, average daily sales orders saw a significant 56% drop compared to Q4 levels in 2022.

The economic landscape was marked by a 57% increase in the prices of raw materials, with a quarter of them spiking by 20% to 100%.

In terms of product trends, American flag caps saw a notable 26% surge in demand, while home security alarms enjoyed a substantial 28% sales boost.

Black Friday discounts varied, ranging from 11% to 32%.

Meanwhile, food prices experienced a considerable 65% surge since the onset of the Covid-19 pandemic. Additionally, US gasoline prices witnessed a significant 48.7% increase from May 2021 to May 2022.

Interestingly, a large portion of shoppers, totaling 69%, admitted to engaging in shopping activities while at work.

The shopping frenzy during Thanksgiving through Cyber Monday attracted a massive 189.6 million shoppers to both physical stores and online retail websites.

Cyber Monday stood out with an impressive $11.3 billion in online sales.

“Black Friday and Cyber Monday Sales Soar to New Heights, Unveiling Unprecedented Trends in Peak Holiday Shopping Seasons”

Here are some of the comprehensive overview of the sales trends and purchasing patterns for seasonal businesses during the Black Friday and Cyber Monday (BFCM) sales period, as well as the Winter Holiday season.

BFCM Sales Impact:

• There is a significant 44% increase in daily sales order volume during Black Friday and Cyber Monday in 2022 compared to standard Q4 figures.
• This surge is substantial, indicating that consumers are actively participating in these sales events.

Q3 to Q4 Sales Turnover:

• Despite the surge during BFCM, there is only a 3.8% uptick in sales order turnover from Q3 to Q4 in 2022 due to seasonal fluctuations.
• This suggests that factors other than BFCM, such as regular seasonality, contribute to the overall Q4 sales turnover.

Winter Holiday Season:

• There is a noteworthy 56% reduction in average daily sales order volume during the rest of the Winter Holiday period compared to Q4 levels in 2022.
• Most consumer shopping for the Winter Holiday season appears to concentrate around BFCM, indicating the importance of this sales period for businesses.

Inventory Management Practices:

• Businesses in seasonal industries tend to avoid purchase orders during the Winter Holiday season and instead focus on gearing up their inventory well ahead of both holiday periods.
• Black Friday marks the onset of a surge in sales orders, with trends showing a gradual tapering off and a second peak in January.

Raw Material Costs:

• Raw material costs for seasonal enterprises experienced price hikes, with 57% of materials affected.
• A significant portion (25%) of these materials saw price increases ranging from 20% to 100%.

Supply Chain Considerations:

The increase in raw material costs may impact overall profitability for businesses, necessitating careful consideration of supply chain strategies and cost management.

Consumer Behavior:

Consumer behavior seems to be heavily influenced by the attractive deals and discounts offered during BFCM, leading to concentrated holiday shopping during this period.

Also Read: BFCM 2024: Promotional Marketing Ideas for eCommerce Store

What Trends are there based on Niche and Industry?

Black Friday is a popular shopping day known for its significant discounts and promotions. While the specific products that sell the most can vary from year to year, certain categories generally experience high demand. Some of the items that tend to sell well on Black Friday include:

1. Electronics: Smartphones, laptops, TVs, cameras, and other electronic gadgets often see significant discounts, attracting many shoppers.
2. Clothing and Apparel: Retailers offer substantial discounts on clothing items, making it a popular category for Black Friday shoppers.
3. Appliances: Home appliances such as kitchen gadgets, vacuum cleaners, and other household items are commonly featured in Black Friday sales.
4. Toys and Games: With the holiday season approaching, toys and games are in high demand, and Black Friday is an excellent time for parents to shop for gifts.
5. Beauty and Personal Care: Cosmetics, skincare products, and grooming tools often have discounted prices on Black Friday.
6. Home Goods: Items like furniture, bedding, and home decor are frequently included in Black Friday sales.
7. Fitness Equipment: As people often make New Year’s resolutions to get in shape, fitness equipment and accessories tend to be popular purchases during Black Friday.

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Prediction for BFCM 2023

These statistics provide insights into the trends and strategies employed by online retailers during the Black Friday Cyber Monday shopping period:

a. Participation in BFCM Discounts:

88% of the top 50 online retailers offer Cyber Monday discounts, according to Digital Commerce 360.

b. Business-to-Business Exclusions:

Many of the 6 companies that don’t offer discounts are identified as business-to-business enterprises, indicating that the nature of the business might influence participation in discount events.

c. Black Friday Deals:

78% of the top 50 online retailers offer Black Friday deals, starting one week before Black Friday. Discounts tend to increase as Cyber Monday approaches.

d. Amazon Ad Sales Growth:

Amazon experiences a significant increase in ad sales on Cyber Monday, with a 146% growth in 2021. Ad sales start increasing from November 1st and peak during Black Friday and Cyber Monday.

e. Average Discounts:

The average discounts during Cyber Week are 30% in the US and slightly lower at 27% globally, according to Salesforce. These discounts contribute significantly to the surge in online sales during Cyber Week.

f. Top Discounted Product Categories:

The top three discounted product categories in 2022 were general apparel (34%), makeup and skincare (32%), and luxury handbags and apparel (26%).

g. Lead Acquisition Campaigns:

4 out of 5 online retailers run lead acquisition campaigns during Black Friday and Cyber Monday, as reported by Socital.

Lead acquisition during Cyber Week increases by 226% compared to a regular period, indicating that this period is particularly fruitful for generating leads.

Several factors contribute to the ongoing popularity of both shopping days:

1. In-Store vs. Online: Black Friday traditionally focused on in-store sales, with shoppers lining up outside brick-and-mortar stores. However, the rise of e-commerce has led to a shift, and many Black Friday deals are now available online. This blurring of the lines between in-store and online shopping has allowed both days to remain relevant.
2. Consumer Preferences: Some consumers may prefer the experience of shopping in physical stores on Black Friday, while others appreciate the convenience of online shopping on Cyber Monday. The preference can depend on factors like product availability, the desire for in-person experiences, or the convenience of online transactions.
3. Extended Promotions: Retailers often extend their promotions beyond Cyber Monday, offering deals throughout the week or even the entire month of November. This extended timeframe gives consumers more flexibility in choosing when and where to make their purchases.
4. Global Reach: Cyber Monday, being an online-focused event, has a broader global reach compared to the traditionally U.S.-centric Black Friday. This global accessibility can contribute to Cyber Monday’s continued growth in importance.

Conclusion:

These findings highlight the importance of strategic planning, including offering discounts, running lead acquisition campaigns, and leveraging advertising, for online retailers during the Cyber Monday shopping period.

Additionally, the insights suggest that the nature of the business, as well as the timing and magnitude of discounts and BFCM Offers, can influence the success of online retailers during this key shopping event.