This year's Black Friday is raising many questions among e-commerce owners. Unemployment due to the novel coronavirus pandemic has brought many concerns. Around 2 million jobs were lost by July of this year. Considering this scenario, the following question arises: is it worth investing in the traditional promotions of the date?
What is Black Friday?
Created in the United States by the retail sector, Black Friday traditionally takes place on the last Friday of November, right after the American Thanksgiving holiday. It is a mega sales campaign, with offers that can exceed 70% off.
Traditionally, after Thanksgiving, Americans would crowd the streets to start shopping for the end-of-year holidays. Although the term “Black Friday” was first used in 1869, during a financial crisis in the US, the retail sector adopted the term in 2005, as a reference to the period of greatest profitability. In 2010, Black Friday had its first edition in Brazil.
Ecommerce records the highest growth in 20 years!
Due to the pandemic, many people turned to online shopping. Consequently, Brazilian guatemala mobile database e-commerce revenues saw one of the highest growths in history. The sector registered a growth of 47% in the first half of 2020, representing the highest increase in 20 years!
According to a study on ecommerce in the country, prepared every six months by Ebit | Nielsen, in partnership with Elo, the growth in revenue was influenced by the 39% increase in the number of orders, that is, 90.8 million, compared to the first half of 2019.
In addition, sales increased by 47%, reaching 38.8 billion in the same period. The sector's growth trend had already been noted for some years, but with the pandemic, there was an increase in intensity.
Increase in purchase value
If you weren't convinced that the increase in sales was a positive indicator for investing in Black Friday this year, we have more good news! In addition to the number of online orders and sales, the average amount spent by consumers for these types of purchases also increased.
The average ticket price increased by 6% compared to the same period last year, rising from R$404.00 to R$427.00. In addition, the number of Brazilians who shop online grew by 40%, reaching a total of 41 million people. Of these people, 58% made more than four purchases in the first half of the year (the so-called heavy users ). Furthermore, of these 58%, 20% made more than ten online purchases in this period. In the same period last year, these buyers represented 53% and 17%, respectively.
Multiple channels
According to the same study, marketplace retailers accounted for 78% of total e-commerce revenue in Brazil. In addition, companies that operate both online and offline saw a 61% growth in revenue in the first six months of 2020. In total numbers, this type of store accounted for 73.1% of the total number of online sales in Brazil and the average ticket was R$495.00, an increase of 4%.
Furthermore, exclusively online stores saw a 26% increase in sales, with an average ticket of R$355.00, which resulted in revenue of R$9 billion.
Outlook for the 2nd semester
Adtail Newblue, in partnership with Ecommerce Brasil, conducted a survey on the prospects for Brazilian ecommerce in the second half of 2020. If online sales boomed in the first half of the year, expectations for the middle of the year are that the results will be even greater. 72% of the retailers interviewed believe that they will see growth in sales compared to the first six months of the year.
The ideal strategy for Black Friday 2020
In addition to offering attractive promotions this year, e-commerce owners should pay attention to factors such as: website loading speed, delivery times and prices, responsive layout, and genuine promotions. In addition, one of the big “game changers” this year will undoubtedly be advertising.
With the increase in competition in the sector, it is essential to find ways to stand out and win over customers. Remarketing campaigns and special discounts for people who are already customers are good alternatives. In addition, email marketing is an essential strategy for this period.
Another crucial point is the preference for mobile. According to the Panorama of Mobile Commerce in Brazil, in 2019, 85% of Brazilians who owned smartphones purchased online. In other words, it is crucial to include mobile in your strategy, both when planning your ads and campaigns, and when adapting your website.
Additionally, make sure that your website is prepared for the unusual number of hits and that the page loading speed is good. According to a Google survey , every second a website takes to load a page is crucial for conversions. For example, an increase of up to 10 seconds in loading time increases the likelihood of abandonment by 123%. Furthermore, according to data from Kissmetrics , every additional second in a page's loading time represents a 7% decrease in ecommerce conversions.
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