A new round of peak season promotions is coming soon. I believe you have already reported the Black Friday and Cyber Monday activities, and the goods are ready.
Here are three simple reminders for you.
Clarify your promotional purpose
If you’re looking to clear inventory or get more reviews, then your discount should be attractive enough, preferably higher than 20% off. Because the minimum discount on these offers is 20%, it must be higher than that for your discount to be more attractive.
If it’s to get more profit, be sure to consider whether your 20% discount is still profitable. According to Kris’s years of experience, for some products, even if you don’t do any promotions, your sales will increase a lot during the peak season, because once the peak season arrives, the customer’s desire to buy is much higher. So there’s no need to pin all your hopes on discounts.
In addition, taking the US station as an example, the minimum charge for reporting Black Friday Cyber Monday is $500. If your product has a profit of $5 after discounting, then you need to sell 100 items to smooth out this Amazon fee. Of course, if you’re doing it for clearance, that’s fine.
But for most small and medium sellers, profit is more important than sales.
Determine your own stocking quantity
Here is a method. If your account is several years old, then you have the data of previous years. You can compare how much higher the peak season in previous years is than usual. If your sales tripled, you could also triple your stock. Of course, this is only a general direction. If you have other new products, you must calculate it according to the actual situation.
If you have a new account, you can find the data of your similar products, generally third-party software has this data. You should know how much you should stock up on.
In addition, the freight rate in the peak season has risen sharply every year, and the shipping schedule has also been slow. Therefaore, the pressure of stocking funds should also be taken into account. If you calculate that the stocking volume is three times the usual amount, but the funds cannot be provided, you cannot guarantee whether you will be able to sell that much in the future. Then you have to change the method. You can send twice the sea freight, and double the quantity in the factory warehouse. If the sales volume is fast, you can cooperate with express delivery . Although express delivery is expensive, this is a method that can reduce risks and ensure cash flow.
Do not stock up too much, otherwise your sales will not have a high cost of backlog inventory. When slow sales are troublesome, in case your account is blocked (especially with a history of illegal behavior), the loss will be even greater.
peak season is long
In addition, the title storm in the first half of the year, this peak season is an opportunity for being banned and selling well, and it is also an opportunity for small and medium-sized enterprises to grow. Because the second half of the year is long enough for the peak season.
Summarize
Starting from the end of October, it can be regarded as the peak season, which is one of the reasons for the high freight rate, because everyone is frantically stocking up.
In addition, our previous experience is that the sales volume in the second half of the year can reach more than 70% of the wholea year. So it’s a good sales opportunity.
But we don’t just have discounts, we also increase sales in other ways because the peak season is long.