Hurt your brand image when run incorrectly.Some of the drawbacks of flash sales are they: When considering a flash sale, companies must decide if it’s the best route to sales. Just because you can, doesn’t always mean you should. On the other hand, flash sales aren’t for everyone. Whatever your reasons, a flash sale could be just what you need to try something different. Others are looking to increase overall sales and profit. Some use it as a tactic to lure in new customers in hopes of retaining them afterwards. You could want to get rid of excess inventory. There are many reasons why a seller would run a limited sale. While flash sales do help sellers compete on price, that’s not their only advantage. Overall, flash sales reportedly generate a 35% lift in transaction rates. Then, running the deal for a short period of time gives customers that extra jolt to act fast and buy now.Īnd, merchants see results. A flash sale is an opportunity to give consumers exactly what they’re looking for. Today’s informed consumers can easily research, compare, and buy from the sellers with the lowest price. Why Run a Flash SaleĮCommerce sellers know too well the race to having the lowest price. Shoppers got smarter – Consumers could research and find low prices without time limitįor a full history of the rise and fall of flash sales, check out this in-depth article from eCommerce Rules.ĭespite the falter of companies who rely solely on daily deals, more traditional eCommerce sellers can (and do) still use flash sales as a successful promotional technique.Not sustainable revenue – Too low of margins for companies to sustain business model.Recovering economy – Consumers didn’t need to rely on such low prices.Flash sale fatigue – Consumers began to ignore emails and deals because of flooded inboxes.So, what happened? A couple of different factors affected flash sales over the years. Over the years, many of the smaller daily deal sites have either downsized, gone out of business, or revamped to a more traditional selling style. Within a year, they lost about 80% of its stock values. In 2010, Groupon launched its IPO with a valued price around $13 billion. Since then, flash sales sites like Groupon have experienced a rise and fall of success. The short time periods made sales exciting and fun. Flash sales offered extremely cheap items that consumers were willing to buy. went hand in hand with the economic recession in 2008. The popularity of flash sales in the U.S. Notable daily deal sites include Groupon, Zulily, and Living Social. Today, there are over 500 sites in America. Within a few years, there were over a hundred different sites that offered a similar format. The site featured a different sale every day for only 24 hours. The History of Flash Salesįlash sales became popular when the site launched in 2004. Sales typically last anywhere between just a few hours to 24-36 hours.įlash sales often happen during shopping holidays like Black Friday or Cyber Monday, but are also used throughout the entire year to increase sales. These sales are an eCommerce business model in which a site offers a single or limited product selection for a discounted price over a short period of time. What is a Flash Sale?įlash sales are often referred to as daily deals or deal-of-the day. If you’re considering running flash sales, take a look at our introductory guide to make sure you know everything you need to run a successful sale. Either way, flash sales can be an effective strategy for all types of merchants. Some businesses are solely flash sales sites, while others use it as an occasional technique to acquire new customers and boost sales. This popular promotional strategy has been around since the early 2000s and its popularity continues today. It’s hard to talk about eCommerce without mentioning flash sales, or daily deals.
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