As the year winds down and the holiday season approaches, Australians eagerly anticipate the annual shopping extravaganza known as “Black Friday.” Originating in the United States, this retail tradition has transcended borders, making its mark in Australia as a shopping phenomenon that’s not to be missed. Black Friday falls on the fourth Friday of November and marks the unofficial kickoff of the holiday shopping season in many parts of the world.
When is Black Friday 2024?
Black Friday is celebrated on the day after Thanksgiving, which is the fourth Thursday of November. This year, Black Friday falls on November 29th, 2024. Retailers around Australia will begin their Black Friday sale 2024 right from 25th November and will offer products at discounted prices until the end of Cyber Monday.
In Australia, Black Friday Day sales draw shoppers who are looking to score some incredible discounts on a wide range of products, from electronics to fashion, home goods to beauty products. But it’s not just a day; Black Friday sales often extend into a week or more of deals and promotions, creating a shopping frenzy that brings joy to bargain hunters and retailers alike.
In this article, we will look at the impact of Black Friday sales in Australian e-commerce, exploring what makes this event so significant in the retail calendar and how you can make the most of it.
Read ahead for insider tips if you’re an e-commerce entrepreneur seeking to optimise your strategy and unlock the secrets of Black Friday success in the Land Down Under!
What is Black Friday
The origins of Black Friday are rooted in American history. The term was first coined in the 1960s and originally had nothing to do with shopping. Instead, it referred to the chaos and congestion caused by both shoppers and tourists in Philadelphia on the day after Thanksgiving. The city’s police officers and bus drivers dreaded the traffic and crowds, dubbing it “Black Friday.”
Over time, retailers in the U.S. sought to change the negative connotation of the term and turned Black Friday into a positive one. They began offering incredible discounts and promotions to lure shoppers to their stores. The day then evolved into a nationwide shopping celebration.
Looking Back at the Black Friday Sales 2023
As Black Friday Sales steadily gained momentum in Australia, retailers can no longer ignore the massive shopping frenzy it induces. The Australian Bureau of Statistics notes that Australian retail turnover rose 2% in November 2023. In 2023, Australian retailers predicted Black Friday would generate sales of up to $6.36—an increase of $188 million from Black Friday Sales 2022.
Several Industries saw sign growth during Black Friday 2023:
- Home goods retailers saw a 7.5% rise in their monthly turnover during 2023, indicating how Australians shop for holiday decors during Black Friday sales.
- Fashion also saw a 2.7% growth, indicating that Aussies are looking for great deals on clothing, footwear, and accessories.
Retail Monthly Turnover Across Australian Territories also significantly increased during November thanks to the boost Black Friday Sales brought in.
Victoria: Increased to 2.4% in Nov 2023 from -1.1% in Oct 2023
Western Australia: Increased to 1.8% in Nov 2023 from 0.7% in Oct 2023
Southern Australia: Increased to 2.8% in Nov 2023 from -0.3% in Oct 2023
New South Wales: Increased to 1.6% in Nov 2023 from -0.7% in Oct 2023
Queensland: Increased to 2.2% in Nov 2023 from 0.5% in Oct 2023
In fact, Black Friday has shifted consumer behaviour, encouraging people to plan their holiday shopping around this single day or week of sales. Black Friday has also prompted businesses to adapt and innovate, using creative marketing strategies to capture the attention of eager shoppers.
Furthermore, the concept of Black Friday has influenced other shopping events, such as Cyber Monday and Singles’ Day, creating a global culture of discounts and deals throughout the year.
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What e-commerce retailers can expect ahead of the Black Friday Sales 2024
Between the Black Friday and Cyber Monday Sales, Australian shoppers are expected to spend nearly $12.7 billion during the Black Friday Sales period. Black Friday sales have become bigger than Australia’s Boxing Day sales period.
Rising inflation and high interest rates have been negative drivers of discretionary spending in Australia this year. The Black Friday Sales period in Australia is set to see a 2.7% increase in speding this year. Shoppers are likely to increase spending and buy things on their wishlist during these sales events.
Who are your Shoppers this Black Friday Sale 2024?
This Black Friday Sales, Millenials are likley to spend more than other demographic with an average spending of $675. Closely behind them are Baby Boomers, (born between 1946-1964) will cap their spending at $430 on average.
Understanding Black Friday Sales Shoppers in 2024
As a stimulant to induce consumer spending, the recent Stage 3 tax cuts in response to cost of lining pressure could be a boon for sellers during this Black Friday Sales. The Stage 3 tax custs over three months to September boosted disposable income in Australia by $6.4 billion, increasing the average income by $604 per person.
In response, Australian consumers opt to save more, spending only 16% and experts feel that peak retail sales season is when consumers will be willing to trade savings for items on their wishlists. But Australians plan to enter theBlack Friday shopping with a budget that’s 20% lower than last year.
Understanding Black Friday Sales Shoppers 2024
As one in two shoppers plan to shop ahead of Christmas, the Black Friday sales in 2024 is that pivotal junction where sellers can reap conversions. But rising festive shopping scam could impact online shopping behaviour.
Australian shoppers are likely to look at various trust signals while switching brands, comparing choices and planning their shopping during the Black Friday Sales 2024.
Black Friday Sale (Australia)
What Australian Shoppers will Purchase During Black Friday 2024
Australians plan to invest their savings in essential items over discretionary spending and gifts during the Black Friday Sales 2024. Shoppers are willing to buy:
- Household Goods
- Fashion and Accessories
- Jewellery
- Furniture
- Consumer Appliances
What Australian Shoppers will Purchase During Black Friday 2024
Black Friday isn’t just a day for shoppers to snag great deals; it’s a crucial day for e-commerce businesses to thrive in Australia. The economic impact of Black Friday on these businesses is substantial. Online shopping plays a pivotal role in the success of e-commerce businesses during the Black Friday season.
As consumers increasingly opt for the convenience of shopping from their homes or on the go, e-commerce platforms become the primary battleground for Black Friday deals. The ability to shop 24/7, access a vast product selection, and compare prices, with just a few clicks has reshaped the retail landscape. Hence, e-commerce businesses that invest in user-friendly websites, mobile apps, and seamless shopping experiences are well-positioned to excel on Black Friday and beyond.
What are the advantages of having a Black Friday sale?
As November gets closer, Australian shoppers are awaiting big deals and saving money on their holiday shopping. As with any e-commerce business, running a Black Friday sale in 2024 is a perfect opportunity to meet demand with your supply and maximise sales. Here’s a quick primer on why it can be incredibly useful to invest some of your attention towards the Black Friday sales this year.
- Increased Sales and Revenue: Black Friday provides a significant revenue boost for Australian businesses, kickstarting the holiday shopping season. Shoppers actively seek out deals, resulting in a substantial increase in sales during this period.
- Clearance of Excess Inventory: E-commerce businesses can use Black Friday to clear out excess inventory and old batches of dead stock freeing up storage space and minimising holding costs. Setting these products at discounted prices attracts buyers, making it an ideal time to cash in on the sale frenzy.
- Attracting New Customers: Black Friday attracts a wide range of shoppers, including those who may not have previously interacted with your brand. Effective marketing, promotional activities and deals can convert first-time buyers into loyal customers.
- Building Customer Loyalty: Offering exceptional Black Friday deals to existing customers can reinforce their loyalty to your brand. Providing a positive shopping experience during this period can lead to repeat business.
- Enhanced Brand Visibility: Black Friday promotions and advertising campaigns increase brand visibility in the competitive Australian market. By effectively utilizing your e-commerce platform’s promotional tools, sending Black Friday email promotions, and optimising your online store for the upcoming sale, you amplify your store’ branding leaving a lasting impression on shoppers.
- Competitive Advantage: Participating in Black Friday sets your business apart as you are offering solutions to customers who are already closer to making a purchase. By upselling and cross-selling, you increase the opportunities for shoppers to add more products to their carts. By setting a minimum threshold for free shipping, you can expect customers to shop more to qualify for free or faster shipping. Crafting relevant Black Friday deals on your online store draws in shoppers and can give you an edge over rivals.
- Early Holiday Shopping: Black Friday is an opportunity for Australians to jumpstart their holiday shopping, which can reduce stress during the peak end-of-year holiday sales and ensure timely deliveries. Businesses that cater to early holiday shoppers by offering better deals to gain a loyal customer base.
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How to prepare for the Black Friday Sale in Australia
Focusing on certain key business areas and customising your approach for the Australian market can prepare your e-commerce business effectively for the Black Friday sale. It can be the key to providing a seamless shopping experience for your customers and maximising sales opportunities for your business! Here are tips to help you get started.
- Inventory Management: Effective inventory management is crucial for Australian e-commerce businesses preparing for Black Friday. Analyse past sales data to predict which products will be in high demand. Consider offering limited-time bundles or exclusive deals on slow-moving inventory to encourage sales.
- Pricing Strategy: Craft a dynamic pricing strategy for Black Friday. While offering discounts, ensure your pricing still covers costs and maintains profitability. Highlight your best deals prominently on your website to attract price-sensitive Australian shoppers. Use shopping assistants to suggest similar products based on your customer’s shopping activity in your store.
- Cross-selling and Upselling: Leverage Black Friday to implement cross-selling and upselling techniques. Suggest complementary products or upgrades to increase the average order value. Tailor recommendations to Australian shoppers’ preferences and seasonal needs.
- Website and Mobile Optimization: Ensure your website is fast, user-friendly, and mobile-responsive. With a growing number of Australians shopping on mobile devices, a seamless experience is critical. Optimise images and minimise page load times to keep shoppers engaged.
- Marketing Campaigns: Develop targeted marketing campaigns for Australian consumers. Use social media platforms like Facebook, Instagram, and TikTok to reach more followers and turn them into shoppers. Segment your shoppers based on shopping activity, preferred payment methods and other engagement history to craft attractive email marketing campaigns. Improve your online store’s SEO to reach your audience effectively. Highlight the benefits of early holiday shopping and emphasise the limited-time nature of Black Friday deals.
- Logistics and Shipping: Collaborate with reliable shipping and fulfilment partners like Locad to meet increased demand. Reduce operational costs by investing in flexible warehousing to decentralise your inventory. Offer faster shipping options to cater to diverse Australian regions and growing demand for shorter dispatch to delivery timelines. Moreover, be sure to clearly communicate shipping deadlines to ensure timely deliveries during the holiday season.
- Customer Support: Prioritise customer support during Black Friday sales. Ensure that your support team is well-prepared to handle inquiries, resolve issues, and provide assistance. Consider offering extended support hours to accommodate Australian time zones.
- Security Measures: Enhance cybersecurity measures to protect customer data and transactions and highlight your commitment to security on your website to build trust with Australian shoppers. Implement fraud detection systems to protect your store from bogus buyers and fraudulent e-commerce scams and rising online threats.
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How Locad can help Sellers run a successful Black Friday Sales 2024
Running a high-volume sale like the Black Friday Sales is a perfect mix of planning, promotions, and pricing. As brand loyalties reduce during the discount craze, Australian brands should look at driving repeat purchases while capturing customers likely to switch brands. Here’s how Locad can help sellers reap maximum sales during the Black Friday 2024:
Surface the Ideal Black Friday Product Line Up: Locad’s tech platform, Locad Logistics Engine, helps analyse current inventory levels. With expiry management, sellers can also identify a slow-moving stock that could accumulate a high holding cost and expire. By consolidating inventory, sales, and marketplace insights, sellers can build the ideal Black Friday product catalog for their online store.
Multi-channel Selling to Maximize Reach: Australian shoppers are likely to compare products across different marketplaces. Shoppers can embrace multichannel selling with Locad by seamlessly connecting with online stores across Amazon, eBay, and Shopify, in addition to custom brand websites. With smart inventory locking, sellers can split their inventory in the same inventory pool to cater to differential demand. Locad’s automatic sync will make sure orders flow from the marketplace and are processed for picking and packing without slipping through the cracks.
Demand Management During Black Friday: In a scalable infrastructure that lets sellers offset labor and utility costs, Locad offers demand forecasting to streamline sales day orders. Sellers can log their expected sales for Locad to notify warehouses of additional staffing requirements to manage picking and packing and fulfill orders on time.
Black Friday Branding and Customisation: With each order fulfilled, brands look to amplify brand awareness, recall value and drive repeat shopping. With Locad, sellers can choose to ship orders in custom branding and include void inserts with discounts that can be redeemed during Cyber Monday sales or holiday shopping. Sellers can identify popular add-ons and mostly paired items and can enlist kitting and bundling services at additional costs. This helps warehouse executives pick, pack, and dispatch orders faster and more efficiently. Create Black Friday Value Deals: When sellers choose Locad, they offset costly overheads and gain access to multiple regional carrier partners. With warehouses across Sydney, Perth, Melbourne, and Brisbane, sellers can choose to distribute and store inventory closer to shoppers, reducing storage costs and speeding up fulfillment. Sellers can list products at competitive pricing, and automatically set the cheapest carrier to appeal to online shoppers and maximise sales during Black Friday sales.
Conclusion
In the world of retail, few moments hold as much promise and excitement as Black Friday. Therefore, as the Black Friday sale 2023 approaches, it’s time for e-commerce businesses to gear up for a shopping extravaganza like no other. With increased sales, inventory clearance, and the chance to attract new customers, Black Friday offers unparalleled opportunities for growth. For e-commerce entrepreneurs and businesses, it’s essential to prepare meticulously in areas such as inventory management, pricing strategy, and website optimisation.
At Locad, we understand the challenges and opportunities that Black Friday presents for e-commerce businesses. Our comprehensive logistics and fulfilment services are designed to help you streamline operations, meet demand, and ensure timely deliveries, giving you the edge you need in the competitive world of Black Friday sales.
So, as the anticipation builds, make the most of Black Friday in Australia, prepare, strategise, and embrace the shopping frenzy. Black Friday is your chance to thrive in the Australian retail landscape, and Locad is here to support your success every step of the way!
