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Seasonality is a completely predictable phenomenon that not only has disadvantages (such as a decrease in sales), but can also be used to gain benefits (with a properly constructed marketing strategy). We tell you what measures exist to smooth out seasonal fluctuations in demand and how to minimize their impact on your business.
The benefits of seasonality
The main feature of these fluctuations, as already mentioned, is their predictability. This gives us the opportunity to prepare in advance for both a decrease and an increase in demand. Of course, doing this in “seasonal” niches (for example, goods for beach holidays or winter sports) is somewhat more difficult, but no less realistic.
Among other advantages of seasonality, it is worth noting:
attracting a new audience through promotions and sales;
sale of remaining goods;
opportunities for experimentation and innovation, which has a beneficial effect on competitiveness;
expansion of the product line, which is necessary to stabilize demand;
new marketing opportunities: increasing the average bill, gaining loyal customers, increasing conversion.
While seasonality can provide significant benefits to a business, it is important to smooth out seasonal fluctuations in demand and use them effectively to your advantage.
Key dates and events that significantly impact demand for Amazon, Etsy, and Shopify
Naturally, they will differ in different countries and cultures. We will take the habits of the average American and European consumer as a basis. So, there are several important events that will certainly affect the demand in your online store:
Name Date of the event Peculiarities
Black Friday Fourth Friday of November Considered the beginning of the holiday shopping season, it is customary to offer significant discounts, organize promotions and special offers on this day.
Cyber Monday Next Monday after Black Friday A significant event in the world of e-commerce. According to US market research, in recent years it has had a higher sales volume than Black Friday.
Christmas Sales From December 1st to December 25th The best selling items are those that are related to Christmas and can be used as gifts.
Amazon Prime Day Varies. Often July and/or October Discounts are available only to Prime members. A good opportunity for businesses to sell off leftovers.
Seasonal fluctuations in sales are also observed on the eve of major religious and national holidays. Thus, before July 4 in the USA there is an “explosive” demand for picnic goods: barbecues, grills, plates, etc. In November, Americans are no less active in buying serving dishes, tablecloths and decor on the eve of Thanksgiving Day (the last Thursday of November). At Easter, the sales leaders will be goods with rabbits, baskets and corresponding decorations.
Don't forget about themed holidays: Halloween (October 31), Valentine's Day (February 14). These holidays play an important role in the economy, influencing consumption patterns, trade and marketing. Many companies hold special promotions and sales during these holidays to attract customers and increase sales.
How to overcome the seasonality of goods
Strategies aimed at reducing the gaps between peak and calm periods of demand will help us with this. Here are some of them:
1. Diversification of products and services
Offering a wide range of products that may be in demand at different times of the year or in different market conditions. For example, retail stores may offer not only summer leisure products, but also winter clothing, sports accessories, or home goods.
2. Significant discounts in the “low” season
Conducting active marketing campaigns, special offers, bonuses for purchases is a great way to overcome seasonal declines during the year and smooth out the difference in sales.
3. Adaptation of production processes
This may include increasing or decreasing production based on projected demand to avoid excess inventory or shortages.
This also includes “adjusting” products to current audience demands and calendar events. For example, if you sell serving dishes, you can release a line with pumpkin images on the eve of Halloween. Or offer themed on page seo service packaging for an existing assortment so that your product can be used as a gift.
4. Working with the target audience
This means holding various competitions, maintaining loyalty through regular e-mail newsletters and active marketing on social networks.
Summary
Based on historical data and trends, you can anticipate seasonal sales fluctuations and manage inventory and resources more effectively.
For example, knowing that the Christmas holidays are coming, which will certainly lead to an increase in demand, you can hire additional staff to work with customers, thereby maintaining the speed of service and the level of service. Or you can set aside an advertising budget in advance to conduct marketing activities during the period of decreased consumer activity.
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發表於 2024-11-9 16:31:47