5 ideas to help you make the quiet days in online retail profitable
As temperatures rise, the buying power of spring quickly diminishes. Once the motorcycles have been overhauled, the gardens spruced up and the sports equipment renewed, a lull in e-commerce creeps up every year. April, July, and September were even considered the weakest months in the last fiscal year. The reasons are both understandable and human. Summer means vacation time. Many people are on the road and putting their money into travel funds. Consumers would rather be out in nature than busy with their smartphones.
Although this is not news, merchants are respectful of the summer. Especially this year, when inflation has hit many households hard and the economic situation remains volatile, merchants have doubts.
Online retail emerged as a big winner from the Covid-19 pandemic. People's buying behavior has changed permanently and will increasingly take place online in the future. The forecasts for the year 2025 already amount to almost one trillion euros in sales only in Germany.
The latest studies also show that online retail is still booming. The FT 1000 is an annual ranking of the fastest-growing companies in Europe. Just recently, the Financial Times and Statista published the seventh edition of the FT 1000. The ranking is based on revenue growth between 2018 and 2021 and shows: Most of the fast-growing companies are e-commerce companies. 41 of them even from Germany.
So, there is no reason to let the summer pass by. Roll up your sleeves and get going!
Here are 5 tips for using summer as an opportunity for business optimization:
1. Business Intelligence
When do customers buy, how do they buy, and when do they not buy? Are there correlations? The calm in summer can be perfectly used for a detailed evaluation and analysis. When do customers show more purchase intentions, when is the number of shopping cart abandonment low, what is the traffic like? Analyze customer behavior data and sales per hour to increase conversion rates. Implementing appropriate tools can help to look at data from all sources (store system, web analytics tool, CRM, inventory management, social channels) holistically.
According to the World Economic Forum, millennials currently make up about 23% of the world's population, making them the largest adult cohort globally. Projections are that they will make up 75% of the global workforce by 2025. As their careers become more successful and their incomes grow, they have more and more purchasing power. Sustainability is significantly driving millennials' purchasing decisions, with 63% even willing to pay more for sustainable products. Companies must learn to rethink. The summer slump is a good opportunity to rethink your environmental footprint and implement offsetting strategies to appeal to the group with the most purchasing power. It may also be time to look at your own business partners and consider whether there may be more climate-friendly alternatives for certain positions.
3. Optimization of the online store
Website optimization and competitor analysis, leveling up the store in terms of SEO and usability - who can do that alongside their core business? On average, 68% of potential buyers abandon their online transaction before it is completed. That's a high number! Reasons for this: slow response time of the website, unexpected costs, e.g., for shipping, complicated checkout system for which customers are diverted away from the web store. Not to forget: Mobile traffic is much higher than desktop traffic, which is 25%. Mobile traffic has increased by 3.77% in 12 months (since 2021) to 75%. A mobile device optimized online store is essential. New product images and detailed product descriptions can also work wonders and make the online store shine.
4. Preparation of the Christmas business
Planning for the Christmas store can't start soon enough. Create a detailed schedule for all the important tasks: Promotional campaigns, ordering inventory and reviewing shipping procedures. Offer optimization: offer unique deals and bargains to your customers to attract them during the holiday season. Review your inventory to ensure you have enough products to meet demand. Plan promotional campaigns: rely on different types of promotional campaigns, such as email marketing, social media advertising, and search engine marketing, to draw attention to your offers. Also use retargeting ads to bring potential customers back to your website.
5. Conversational commerce
While online stores used to offer their products for sale on websites and in apps - in other words, classic e-commerce - the next step is in the direction of dialog. Conversational commerce refers to all conversations between customers and companies. Companies that attach great importance to conversational commerce want to make the exchange with their customers particularly dialog-oriented and thus improve their customer relationship. Companies can enter dialog with customers "up close and personal" and thus have more influence on the customer journey, customer service and brand building. If you want to position yourself in conversational commerce, you can take a good look at the strategies of brands that have already achieved this successfully. A positive example is the "WhatsCook" campaign of the mayonnaise brand Hellmann's, a live recipe service that works via WhatsApp.
Preparing smartly for the high-turnover months and being best prepared for the online shopping peak season after summer requires investment. Tools, strategy changes and new campaigns can be expensive if you want to set them up professionally and profitably. To help merchants get the liquidity they need to grow quickly and on fair terms, Warehousing1 has partnered with Banxware to develop an offering for WH1 customers. Banxware is an embedded lending provider that enables digital platforms to offer integrated financing solutions for businesses easily and online.
The summer months are also the perfect time to put their fulfillment to the test. Contact us now to schedule a free consultation. In an initial consultation, we will go over exactly what your requirements are and how to solve them. Warehousing1 is happy to support you in organizing the logistics of your online store. Feel free to make an appointment for a free consultation today. One of our experts will get back to you within 24 hours.