We recently discussed how seasonal eCommerce merchants — those who focus specifically on the peak Q4 shopping season — can devise year-round selling strategies to boost their sales and profits.
That’s because, for some reason, many online sellers think that sales slow down to a near-halt after the December holidays, but it simply isn’t true.
Somehow, these sellers have come to believe that December 24th represents the start of a sales downturn every year, with the costs of doing business outweighing their chances of earning a profit.
Because of that, they decide to pull the plug on any sales-driving tools they’ve been using, like their automated repricer, and close up shop until the next Q4 comes around.
And we get it: Because Q4 is so busy with everyone spending a fortune on gifts, a seller’s natural instinct says that people are going to be financially tapped out after New Year’s and they’ll be taking a break from shopping from January until it’s time to prep for October’s Halloween sales.
Unfortunately for these sellers, their intuition about a “Q1 slowdown” couldn’t be further from the truth.
What we discovered about post-holiday sales
The Informed.co Analytics Team has been hard at work dissecting sellers’ sales numbers to understand seasonal online shopping patterns and determine the true impact of our repricing software on seller metrics.
To do so, they analyzed the average sales volume of sellers who use Informed.co year-round and compared them to sellers who stop using Informed.co after Q4 and then subsequently return to Informed.co the following Q4.
What they discovered was a correlation between lower post-holiday sales and sellers who discontinue their use of our repricer after Q4.
On the flipside, they also found that sellers who continue to use Informed.co’s automated repricing software after the holidays to drive sales from Q1 to Q3 find no decline in sales from pre-holiday levels.
In fact, because of the upward trend in online shopping overall, these sellers typically find an increase in sales volume from their pre-holiday levels when the New Year rolls around.
Interested in seeing our data team’s results? Let’s get to the numbers!
Believe it: There’s no dip in sales from your pre-holiday level after Q4 — if you use Informed.co
To find out the truth about post-holiday sales in Q1, our team analyzed the sales data of all Informed.co customers from Mid 2015 to present day and compared it to the data of our seasonal customers (those who turn Informed.co off between Q1 and Q3 and then return to Informed.co for the next Q4) over the same period of time.
What we discovered was counter-intuitive and compelling:
This chart overlays the average sales volume of all Informed.co customers with the average sales volume of seasonal sellers who stop using Informed.co after Q4.
As you can see, year-round Informed.co customers have a much higher sales volume throughout the year compared to seasonal sellers who stop using Informed.co after Q4.
(Also note that the spikes in July represent Amazon Prime Day, a shopping holiday you clearly want to be ready for if you’re looking to boost sales during the summer.)
But here’s the most important takeaway from comparing the two charts:
There isn’t a major drop-off in sales on average for year-round Informed.co customers after Q4’s peak selling season, but sellers who stop using Informed.co experience a lag in Q1 sales until early March.
That means that, on average, sales level out to pre-holiday levels in Q1 — if you’re equipped with our repricer — and your sales may even experience a slight increase over the previous year’s pre-holiday numbers.
On the other hand, seasonal sellers who ditch Informed.co's automated repricer after Q4 are missing out on some serious sales volume that could positively impact their businesses and lifestyles — all based on a false belief that sales experience a major dip when the new year rolls around.
How is it possible that sales stay strong in Q1 and beyond?
With all the attention that the Q4 holidays get, it’s no wonder that the major holidays and events in Q1 get forgotten about.
But smart sellers realize that there are plenty of sales to be made early in the year, whether they’re related to the many special occasions that fall in Q1 or because people are returning and exchanging gifts (or cashing in on gift cards) they received for the holidays.
Do yourself a favor and source accordingly for the following major Q1 sales days:
On top of that, make sure to be ready for savvy Q1 shoppers who waited patiently to shop for popular items after the holidays to scoop them up at lower prices. (Yes, there really are people that make a routine of this!)
Just because the masses are following each other’s lead by downsizing their operations after Q4 ends doesn’t mean you should play along.
Instead, look at the data showing you that the numbers don’t dip after the holidays, and make the best decision for your eCommerce enterprise based on that.
The bottom line on boosting your yearly sales and profits
So, there you have it: Clear data showing that sales don’t actually dip after the Q4 holidays — except for sellers who stop using Informed.co in Q1.
Sellers who stick with Informed.co for their automated repricing needs experience much higher sales than those who quit using our repricer between the start of Q1 and the end of Q3.
That gives you every reason to continue selling year-round with the help of Informed.co’s powerful automated repricing software, since anyone who doesn’t will be leaving serious sales and profits on the table.
So, if you’re looking to lock in a year’s worth of Informed.co to keep your online store running strong year-round, get in touch with us to learn about our brand new annual billing plan.
Sellers who sign up for annual billing will enjoy a discount of two months, so you’ll get 12 months of our automated repricer for the price of 10 months.
Whatever you decide, understand that any preconceived notions you had about a “Q1 sales slump” or “post-holiday sales hangover” should be thrown out because the data tell us otherwise.
And, should you choose a year-round eCommerce selling strategy, you’ll be handsomely rewarded with way more sales than you’d ever be able to make with a seasonal selling strategy that only targets Q4.
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