Online Retailers: 3 Issues You Might Encounter During a Holiday Sale
With Black Friday, Cyber Monday, and a whole lot of other holiday sales, this is a key time to increase your online business’ profitability. There will be more sales, higher-paying customers, and unfortunately, there will also be issues that come along with these types of sales.
A prepared online retailer will be able to combat these problems. However, to be able to do this successfully, you must first understand the challenges that could be coming your way. This post outlines three of the main issues an online business might encounter during a sale during the Christmas period.
Overselling Products
During a sale, it can be difficult to keep track of inventory if the inventory management software is lacking or doesn’t even exist in the business. This is when overselling occurs. Overselling sees an online store sell more units of stock that its actual inventory levels can meet, meaning the business is unable to fulfill outstanding orders until the stock is replenished. In this situation, some businesses will be forced to offer customers refunds.
Online sales are vulnerable to overselling for several reasons. This might happen because the system has glitched, inventory tracking hasn’t been maintained, or incorrect reorder points were set. However, overselling products can result in unsatisfied customers, which leads to a damaged reputation, and revenue loss.
Thankfully, Ryder has outlined five of the best ways to prevent overselling during online sales. These tips, which include auditing inventory regularly and offering pre-orders, can ensure your business stays afloat during the holiday season.
Offering Last Minute Promotions
Running last-minute promotions can cause difficulty for some online retailers during holiday sales. There are so many options when choosing an effective promotional campaign that is can be difficult to settle on one, especially when it is for a last-minute sale.
To prevent struggling to decide upon last minute promotions, the business must begin planning in September at the very latest. This will involve the inventory, sales, and marketing teams to ensure all aspects of the sale can move seamlessly when the time comes. Ensuring there is enough stock is one thing, but making sure the sale is promoted effectively is another priority.
Although it is best to begin with lots of time, there are some promotions you can plan at the very last minute. For example, the online business could offer free shipping or “buy one, get one free” sales promotions if the stock levels and shipping provider allows it.
Failing to Compete with Competitors
There has been an increase in competition with many traditional businesses shifting to ecommerce; this means the price competition has become even more fierce. The aim of this game is to offer the lowest possible price while still receiving a respectable profit, which can be a tough balance.
For some businesses, offering a significant price drop will be detrimental to their profit margin. If this is the case, avoid selling overly competitive items during this time of year. There is even repricing software that can help with this issue, though, even if you are competing against Amazon sellers. This software will automatically alter the pricing on your listings to compete without risking your profit margin.
By planning ahead for your holiday sale, your business can avoid encountering the three main issues that are prevalent for online retailers at this time of year.
