Black Friday and Cyber Monday mania will continue this year with a wider range of businesses expected to get in on the online action, according to payment processing company Worldpay.
“While Black Friday and Cyber Monday have typically been the realm of retailers, a more diverse range of businesses are now recognising that they too can take can take advantage of this unique online opportunity. Shoppers during this time are highly engaged, proactive and looking for a wide range of online deals. The potential to reach new customers and strengthen brand loyalty is huge, no matter what sector you operate in,” said Phil Pomford, general manager for Asia-Pacific at Worldpay.
E-commerce businesses should ensure they set themselves up for success by making sure their websites are prepared for heavy traffic and offer simple payment options to drive shopping cart conversions online, he added. “They might also consider following the example of US retail giant Amazon and kickstart Black Friday deals a week early in order to generate excitement early on.”
According to Adobe Digital Insights, Black Friday online sales surpassed S$3 billion (US$2.2 billion) in 2016. These numbers are expected to rise in 2017, as a result of increased online spending.
RTB House, a global company providing retargeting technology for advertisers worldwide, analysed hundreds of campaigns to analyse how the popularity of Black Friday grows from year to year. From Black Friday in 2015 to 2016, the event attracted over 106% more people to online stores, with 204% more transactions. On Black Friday 2016, e-stores were visited by nearly 65% more people and with more 170% transactions than the average of the rest of November.
“We anticipate conversion rates surging in the upcoming Black Friday 2017 thanks to consumers’ increased appetite for shopping. As many retailers are hoping to latch on these sales events, it is vital for retailers to step up efforts on luring shoppers to their online and offline stores. To address this, retailers have since launched ever-so-creative deals and massive price reduction offers in hope of creating visibility among their audience,” said Chandra Kuncara, RTB House’s country director, South-east Asia. “Customers who have missed out on Singles’ Day will be sure to jump on the next sales event. This is a great opportunity for marketers to leverage Singles’ Day online visitors and push their sales further through effective ad campaigns next week.”
The increase in shopping activities during Black Friday and Cyber Monday also draws a rise in both card-present and card-not-present (CNP) fraud. As Asian retailers, jump on the hype offering great bargains to attract more customers, this year, the threat may be greater than ever. Data analytics company FICO warns consumers to be vigilant this shopping season.
“Black Friday and Cyber Monday will probably see record levels of card fraud this year,” said TJ Horan, vice-president, who oversees FICO’s fraud solutions. “If you’re getting ready to start your holiday shopping, you should expect that criminals are out to get your money, and take a few preventative steps. It pays to keep your eyes open at ATMs, to monitor your purchases at least weekly, and to make sure your card issuer has the right contact info for you.”