Black Friday 2017 has caused some wide spread opinion in the Ecommerce world. Some are under the impression that Black Friday 2017 did not produce enough “good deals”, others believe that it’s the cause of the pre-sales and the run up to the infamous day, that allowed a somewhat anticlimactic Black Friday. However, it must be said that Black Friday or “October Oblivion” does give retailers a large revenue and without it, profit margins may plummet. We look at the opinions from the latest #EcomChat.
Was Black Friday good for Ecommerce, or bad for Ecommerce?
Ecommerce retailers undoubtedly benefit from Black Friday and of course, Cyber Monday. However, it is clear that there is a lot of consumer backlash with many believing that real bargains are sparse, or really non-existent.
The UK adopted the Black Friday tradition from the US which creates the question as to whether UK consumers really care? As Black Friday is no longer a day event, there is much argument to suggest that this waters down the concept and highlights the fact that real bargains are rare. You even have major retailers including IKEA, Asda and Selfridge’s, to name but a few, not even participating in Black Friday.
It is said that Black Friday might make consumers price sensitive when they feel a bargain is promised, therefore putting pressure on retailers to participate. This pressure is felt by companies at all levels of the spectrum, with small independent businesses feeling that they should take part, even if it does affect their revenue. Is this competition necessary? This is because the deals seem to be lacklustre, with less focus on actual deals and more making sure that there is some Black Friday presence.
Black Friday 2017 did not necessarily take a toll on Ecommerce retailers as there were record breaking sales, but consumers have started to sense that deals aren’t as great as they used to be. Consumers are starting to become agitated by the month-long discounts, giving less excitement for the day, and as a result, sales for Ecommerce retailers could start to decrease in the future.
What did retailers do for Black Friday and Cyber Monday 2017?
Some well-known companies did not let the day escape them with Apple not discounting any of their products, but giving away gift cards, which is most certainly a good way for a repeat purchase. Gym Shark reportedly did more sales in one week than in the entire year of 2015, which just emphasises the importance of Black Friday to some retailers.
Black Friday somewhat kills loyalty with brands, with them discounting products that customers have paid full price for not too long before Black Friday. This raises the question of whether loyal customers should get early access to the deals or even have exclusive deals as an appreciation for their loyalty. However, most Ecommerce retailers gave their subscribers an insight into their deals, giving consumers some exclusivity.
Many predict that more brands will pull out of Black Friday next year with an increasing number of retailers escaping the infamous day. Massive retailers like Amazon will continue with Black Friday due to its 3rd party sales, but deals will probably diminish as consumers could start to become tired of the long campaigns leading up to Black Friday.
Black Friday has its positives and negatives for both retailers and consumers, but 2017 has shown that more consumers are becoming less interested in the day. There is less of a hype over Black Friday with it just being the usual Christmas deals being brought forward a few weeks earlier. The future of Black Friday is questionable, but the revenue it brings for Ecommerce retailers just highlights that it won’t be going anywhere for a while!