Black Friday and Cyber Monday have become infamous discount-filled holidays.
Many families enjoy the tradition of camping outside retail locations and being some of the first to shop at midnight.
Those who feel overwhelmed by this often chaotic process can enjoy many of the same sales on Cyber Monday, which starts the Monday after Black Friday.
The term “Cyber Monday” was coined in 2005 by the National Retail Foundation (NRF).
They had noticed a recurring spike in online traffic and sales on the Monday following Thanksgiving.
The NRF believed the substantial increase in revenue was a result of consumers making purchases at work because of stronger internet connection and privacy from kids wanting a sneak peek at their gifts.
As online shopping continues to gain traction, many big-name retailers are now offering their Cyber Monday discounts early to try to get an upper hand against the competition.
Early offers are attractive to consumers because they are able to get good deals on in-demand products. Not to mention they can avoid the chaos of shopping in stores on Black Friday!
Below are a few retailers starting Cyber Monday early:
Black Friday is still the busiest shopping day for retail stores, but it should be noted that foot traffic is declining.
In 2018, the number of people visiting stores decreased by 9% in comparison to the previous year.
Each holiday shopper spent around $1,007.24 in 2019 on seasonal products including gifts, food, decorations, and greeting cards.
They also shop for non-holiday products to take advantage of seasonal deals and promotions.
Consumers spent a grand total of $717.50 billion in 2018 (up 4.3% from 2017).
It’s estimated that Thanksgiving, Cyber Monday and the days in between capture 20% of all holiday online shopping! Cyber Monday drew in $7.9 billion worth of online sales (up 19.7% from 2017).
The NRF cited a mixture of self-spending and gifting along with high confidence among shoppers for this upward trend.
Have Ample Inventory on Hand
With Black Friday here today and Cyber Monday only 3 days away, it’s important to take a step back and identify what your supply chain needs to have a successful holiday shopping (and shipping) season.
Retailers need ample stock of their inventory that can move throughout their supply chain and between other locations based on sales volume easily.
Preparing for the season can only take companies so far – a portion of their profit is dependent on the ability to adapt to consumers’ responses as promotions begin to roll out.
The average holiday shopper’s knowledge of substitute products and standards has increased since the dawn of the internet.
Retailers are responsible for knowing what shoppers want instead of simply telling them what they need – meaning power is given back to the consumer.
Shoppers expect the same discounts offered in-store to be available online so they can shop within the comfort of their own home.
Stores who don’t make this a reality or offer exclusive in-store promotions run the risk of losing their share of online holiday shoppers to competitors.
Read: Want To Be Like Amazon? Treat Your Customers Like Kings
Big-name retailers who have successfully navigated Black Friday and Cyber Monday have one thing in common: Shipping incentives. Consumer demand has been steadily increasing for some time now.
Shoppers are more concrete in what they want and are looking to have the product in their hands as soon as possible.
Retailers have adjusted to this by offering a shipping incentive like 24/7 free shipping, free shipping after spending a certain amount of money or free two-day shipping.
Consumers are already more inclined to shop online and free shipping that transports their products is another convincing factor.
A successful Black Friday and Cyber Monday both rely on balance.
Retailers must have sufficient inventory for online and in-store sales to provide holiday shoppers with the best experience possible.
They need to be aware of what consumers like to see in person before buying and what they prefer to order online.
Inventory has to be adjusted to meet these preferences. Shipping incentives getting products to the consumer quickly and for free are often the tipping point in the purchase decision.
Ready or not, holiday shopping is right around the corner! How are you preparing your supply chain?
Related Article: 2019 Holiday Shopping Season Parcel Shipping Best Practices
Related Resources
Kuebix Freight Intelligence: 3 TMS Related Case Studies
In these 3 transportation management system case studies, we detail how AMMEX, Master Magnetics, and Show Me Global Logistics implemented Kuebix TMS to save time, improve order accuracy and visibility, and connect with shippers. Download Now!
Putting Community in TMS: Enabling the Network Effect in Transportation Management
In this eBook, Adrian Gonzalez, President, Adelante SCM in partnership with Kuebix TMS, describes how transportation management systems are transitioning from being “inside the four walls” applications to becoming operating systems that power transportation communities and enable network effects. Download Now!
More Kuebix Resources