As we get closer to Christmas, the extra pressures that retailers are having to contend with – such as inflation, the cost-of-living crisis and continued post-pandemic supply-chain disruption – are stacking up during their busiest trading period. For consumers too, economic uncertainty is rife due to financial pressures, with almost a third (28 per cent) of shoppers planning to spend less this holiday season. Therefore, during this hugely significant period for boosting annual profits, it’s important to reflect on business strategies that will allow retailers to succeed during this shopping season.
Tony Preedy, managing director of Fruugo, comments on how retailers can thrive during this peak trading season and suggests some solutions for weathering the storm:
“The rise of eCommerce has led to online shoppers being shrewder in their purchasing decisions, and convenience has replaced brand loyalty. Consumers increasingly buy whatever they want without considering who or where it’s from, as long as they can get it where, when and for how much they want. If there are stock issues, search engines quickly present alternative suppliers, meaning sellers must be savvy about how and where they list products. Converting inventory into cash becomes even more crucial during the competitive festive season.
“When listing products, sellers ultimately want as many eyes on them as possible, and marketplaces present an efficient and cost-effective method to do this by increasing a sellers’ online presence and access to potential customers. Marketplaces that specialise in cross-border eCommerce broaden their audience even further and will often take on most of the legwork for selling overseas. Sellers should opt for ones that operate on a no-sale, no-fee basis, so they can tap into global demand with zero risk, rather than relying solely on local customers.
“Additionally, during such a competitive time, retailers may feel pressured to drop prices to drive virtual footfall, however, this is likely to be disastrous in the current climate. In fact, rising costs will prompt many retailers to increase prices. Instead of offering discounts, sellers desiring a more profitable Christmas trading period should focus on diversifying their sales channels which will broaden the pool of potential customers and maximise sales.”
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