BFCM Shopping Trends 2023

This is the season for the soaked discounts that everyone's been waiting for! We are about to start the Black Friday Cyber Monday 2023 (BFCM 2023) craze.

You'll need sure knowledge and strategies to handle BFCM 2023 like an expert before you can unleash your creative side and produce BFCM deals that will have your online shoppers saying, "Ho-ho-hold my wallet!"

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Consumer trends this Black Friday & Cyber Monday

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Customers are cutting costs

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Even though the COVID-19 pandemic is now largely forgotten, its effects on consumer behavior and the economy endure + recession sentiments and unstable political situation in the world add stress to consumer. With opposing indicators like reduced inflation (yet higher than anticipated), higher interest rates, and a tight labor market, the US economy is still unclear. Customer attitude reflects this intricacy. While they remain upbeat about the immediate future, Americans are concerned about growing costs and job security.

Since late 2022, consumer spending has risen steadily due to optimism. On the other hand, consumers are picking more affordable brands and making selective purchases to save money. Eighty percent of participants in a McKinsey survey indicated that they are modifying their purchasing habits by making smaller purchases. To cut prices, they move vendors or adjust the quantity or pack size of what they buy. Most consumers will either buy holiday things at a discount or buy fewer items overall due to inflation and economic effects.

It indicates that they are searching for any kind of deal or discount that will enable them to save even more money. Numerator reports that 88% of participants admitted that inflation will influence their Christmas spending and that 67% of them planned to look for big deals as a way to lessen the impact (as opposed to 50% who said they would buy fewer things).

To sum up:

Expect your shoppers to spend less this BFCM 2023, but it doesn't mean they won’t open their wallets. Cheaper brands, big deals, and discounts will be their priority.

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Customers are buying on SNS shops (social commerce)

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Technologically aware millennials and Gen Z, who are familiar with and inspired by influencer (KOL) content, are predicted to actively engage in social commerce as firms increasingly integrate social media checkout and buying.

Today, online retailers may more efficiently target potential customers by using built-in eCommerce systems like Pinterest's shoppable advertisements, Facebook Shops, Instagram Shopping, TikTok Shop, and Facebook Shops.

One prominent development in the retail industry is the emergence of social media stores. TikTok, for example, just launched an in-app buying experience that does away with the need for external web browsers.

What makes the success of social shopping?

Influencer marketing is what it is. Your shoppers would buy from you if a famous social KOL suggested them.

You can increase your potential sales during the holidays by implementing influencer marketing and live shopping.

Influencer marketing generates $5.78 for every dollar invested, making it an excellent return on investment in addition to attracting new consumers and driving organic traffic at a reduced cost.

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Customers prefer in-app purchases (m-commerce)

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Customers are prioritizing convenience, which is why the usage of mobile applications for shopping is on the rise. With just a few touches on their cellphones, users of mobile apps may make purchases quickly and easily. These apps offer a shopping experience that is optimized for mobile consumers. Who loves to shop using their phone? younger clients, particularly Gen Z and Millennials.

What does this mean?

You can't overlook Gen Z as the holiday-buying powerhouse. With over 68 million members, Generation Z is a tech-savvy generation that has shown resilience against inflation; 72% of them look forward to their holiday shopping.

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Customers choose to support small businesses

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Small businesses now have an equal chance to compete with larger brands by utilizing social media advertising and influencer marketing, thanks to the recent rise of social commerce. Social media platforms enable small businesses to build a strong online presence and engage directly with their target market, which promotes growth and success in the online market. Given that Gen Z and millennials make up the majority of social commerce customers, it is also common for them to favor small companies over large corporations.

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FCM 2023 predictions

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Cyber Monday will remain the largest day for consumers to shop. Cyber Monday is the biggest sale event of the year, even though Black Friday takes precedence. Cyber Monday and Black Friday saw an incredible $11 billion and $9.12 billion in online sales, respectively, during the BFCM 2022 timeframe, according to TechCrunch.

What implications does this forecast have for your company?

It's important to understand that, although Black Friday will certainly be big, Cyber Monday is predicted to outpace it in terms of order volume and customer service requests when planning for the BFCM period. To optimize your sales, strategically allocate your best discounts and promotions for Cyber Monday, ensuring that you seize the opportunity to attract and engage with a larger customer base.

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Expect and prepare for a high return rate

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Anticipating a possible rise in returns is crucial as the BFCM 2023 draws near.

What causes this to occur?

Multiple product orders from your online customers increase the possibility of returns. The annual average for holiday return rates is roughly 17.9%. This is generally caused by several things like presents that the receivers don't really appreciate or consumers who are second-guessing their decision to reimburse themselves for holiday-related overspending. Consequently, compared to other times of the year, eCommerce brands saw a spike in returns in December, January, and February.

What can you do if you have a high return rate during the Christmas sales season?

Make sure that your goal in whatever you do is to maintain your clients' complete contentment. When online retailers have physical storefronts, they can give their consumers the ease of returning items in-store. This gives them a chance to interact with the business, maybe preventing repeat returns by letting them try on other sizes or look at other products. One popular return method that eCommerce-only firms might adopt is having customers send items back to the brand's warehouse or fulfillment center for verification of eligibility and inspection. However, by using return management tools, you can save time.

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Holiday selling strategy: The most popular products to sell during the holiday season

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According to a Statista study on anticipated Christmas purchases, more than 75% of participants said they intended to buy these things for their loved ones this coming holiday season. Furthermore, toys, games, gadgets, and other products like air fryers and gift cards were among the popular holiday products that Adobe's research revealed for 2022.

In addition, it was found that the most popular present category for 2022 was clothing and fashion, which accounted for 45% of gift sales. Toys and games came in second with 35% and beauty products with 32%. Similar to the research, the most popular categories that customers buy are Consumer Electronics (21%), Beauty and cosmetics (20%), Apparel and shoes (25%), Home Goods (27%), and Household Essentials (26%).

What do these numbers mean?

You may determine what buyers are presently interested in and adjust your inventory by keeping an eye on the most popular product segments. Additionally, you can watch these categories for ideas for creating your own niche.

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Sum up

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Through an embrace of the most recent holiday shopping statistics and a comprehension of consumer behavior, you will be able to navigate the competitive market with confidence in 2023. If you adhere to these trends and put great client experiences first, you'll have a prosperous holiday season.

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Contact us for help preparing for BFCM 2023.

And happy holiday selling!

Do you need any help for last minute tweaks before BFCM starts? Get your augmented eCom team here!

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