Five Ways to Protect Black Friday Profits

London, Oct. 25, 2023 /PRNewswire/ — The right supply management software helps eCommerce companies create the agility and resilience they need to thrive.

Black Friday looks to be as big as ever this year, with global sales expected to be high $40 billion On November 24.[1] But just because the day is a hit doesn’t mean every individual retailer can guarantee a profit, he cautions. nShiftA global leader in parcel delivery management software.

From squeezing margins too tightly with excessive discounting to running the risk of absorbing costs on countless returned items, many factors can undermine profitability during peak periods.

nShift has compiled a list of five strategies to maximize profits on Black Friday:

  1. Keep customers coming back for more – Retailers shouldn’t just focus on the “share of wallet” they can secure from customers on Black Friday. They need to consider the “share of life” they can protect by building loyalty with shoppers over the long term. To do this, they need to focus on providing a better customer experience throughout the entire lifecycle of the order and not just rely on deals and discounts.
  2. Upselling and remarketing – Customers are more likely to open delivery update messages than other marketing communications. This makes delivery communications a powerful digital marketing channel for retailers
  3. Stop returns are killing profits – One in three purchases on Black Friday will soon be returned.[2] However, 30% of income can be converted into exchanges if the right income solution is implemented. This helps facilitate the right returns policy, for example, by encouraging customers to make returns and exchanges, thereby increasing attendance.
  4. Ensure ability to deliver – Three-quarters of shoppers will abandon a retailer because of poor delivery service.[3] But during peak times, ensuring that there is enough bandwidth to meet increased demand can be challenging. Retailers and warehouses need to scale quickly, which includes using a large number of carrier companies
  5. Reduce abandoned shopping carts – 80% of baskets are abandoned on Black Friday.[4] Offering the right amount of delivery options can increase conversion by 20%
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Sean Sherwin-SmithDirector of Post-Purchase Production at nShiftsaid: “Black Friday on November 24 is expected to be another sales record. E-commerce and multi-channel retailers should take advantage of the increased traffic. But they cannot assume that their operations will automatically be profitable.

“Using the right delivery management software gives retailers and warehouses the flexibility to quickly increase the range of carrier companies they use to ensure transportation efficiency. These increased delivery options at checkout also give customers the choice they expect – helping to reduce cart abandonment. Customer interaction at the last mile is all kinds of new revenue for retailers. It also opens up opportunities, and by digitizing revenue, they can turn revenue into transactions – protecting revenue and profitability.”

Visit nShift’s Black Friday hub for more tips on making the most of Black Friday, Cyber ​​Monday and the Christmas shopping season: https://nshift.com/black-friday

About nShift
nShift is a leading global provider of cloud delivery management solutions that enable frictionless shipping and return of nearly one billion shipments across 190 countries annually. nShift’s software is used globally by e-commerce, retail, manufacturing and 3PL shippers. The headquarters of the company is London And Oslo. The offices have more than 500 employees Sweden, Finland, Norway, Denmark, United Kingdom, Poland, Netherlands, Belgium And Romania.

[1] https://www.wunderkind.co/blog/article/3-key-projections-for-cyber-week-2023-how-retailers-should-prepare/
[2] https://www.motesque.com/black-friday-2022-sales-hit-a-new-record/#:~:text=Returns%20happen%20particularly%20after%20the%20week%20of%20Black%20Friday&text= In %20other%20words%2C%201%20in,%20send%20back%20to%20stores..
[3] https://www.logisticsmanager.com/three-quarters-of-consumers-will-abandon-retailers-over-poor-delivery-service/
[4] https://www.statista.com/statistics/1377689/black-friday-cart-abandonment-rate/#:~:text=On%20and%20around%20Black%20Friday,%2C%20however%2C%20at%2077.74 % 20 percent

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