Inflation is a general increase in prices and fall in the purchasing value of money. In our days is continues to affect the market and consumers. This happens for many reasons, such as supply chain issues, aggregate demand and of course energy and fuel costs.
During Christmas holiday shopping season and especially for consumer goods and for those that depend on technology, inflation can lead to big sales declines.
However we have to keep in mind that there is always room for satisfactory sales and profit. An important area to consider is cost reduction. A cost cutting tactic, among others, is the following: streamlining customer support and choosing “neutral” packaging materials rather than tailor-made, i.e. store-branded. Besides, limiting the cost of merchants and offering more attractive prices, helps consumers to save money to buy the gifts they want for this holiday season.
Here are some methods you can use to help drive sales amid pressures on corporate and consumer finances.
Offer discounts based on the number of products
Pricing products based on quantity can help consumers save money while, at the same time, it increases average order size. It is preferable, though, not to limit the offer to the same product. Offering volume-based discounts on product categories, or even the entire e-shop catalog, can reward loyal customers, but also attract new ones.
For example, depending on the types of products you sell, you can define a discount policy, either based on the total number of products to be purchased, or on the total value of the purchases. That is, for purchases of at least €100 you could offer a 5% discount, for purchases of €200 the discount could be 10%, etc.
In any case, choose a strategy and explain it clearly to potential buyers so they know exactly what to expect.
Create bundles of products at attractive prices
Offers on items that are usually purchased together simplify the shopping process for the consumer and enhance the value of orders. Even small discounts are helpful. Examples of product bundles are: coffee machines with coffees, water filtration devices with disposable filters, mobile phones with case and power bank, etc.
Offer Buy Now Pay Later – BNPL services
These services (eg finloup, Klarna) offer consumers the possibility to pay for their purchases in interest-free installments even if they do not have a credit card. Lastly, they offer merchants the possibility to expand their clientele.
Offer a choice for standard priority delivery
As shipping costs have increased due to rising fuel prices internationally, give consumers the option to choose a more economical service to save money, knowing that products will be delivered in a longer time.
Create waitlists and pre-orders with “bill later”
Instead of listing popular out-of-stock products simply as “out of stock,” create a waiting list for them. Then notify your customers when you receive these products and proceed to ship them. You can have their payment information accepted from the moment of pre-ordering and when you receive stock automatically proceed with billing and shipping the products. Be sure to let them know the exact process and mention delivery times.
Offer loyal customers “locked in” prices
Usually products in high demand are bought very quickly and then uploaded to auction sites and marketplaces, where they are resold at much higher prices. Reward your loyal customers by reserving stock for these products at specific quantities and prices.
Offer open amount gift cards
It’s better to let your customers choose the amount they want to give via a gift card, rather than giving them gift cards with specific amounts. In this way, they will also be able to offer as a gift a product that is currently unavailable. In this scenario you can place a “Buy Gift Card” link next to “Not Available” on product pages that you think will see increased interest.
The Christmas holiday season can cause a little confusion for some retailers about the commercial moves they will make. Start planning your strategy now and always keep in mind that you can sell more than expected as well as expand your customer base.