Black Friday: 74% of entrepreneurs expect an increase in income
For 60% of small and medium-sized entrepreneurs, the date is important in the annual income
Black Friday is important in the annual income of 60% of small and medium-sized online entrepreneurs. This is shown by the research “Black Friday 2022 Heat” conducted by Nuvemshop, the leading e-commerce platform in Latin America with 100,000 active stores.
Despite this year’s Black Friday being inserted into a busy context, with elections and sporting events, the survey also shows that 63% of entrepreneurs are optimistic about online sales on that date. Also according to the survey, for almost half of the entrepreneurs, the expected growth in income is up to 30% in November (compared to October); while only 5% believe that there will be no increase.
“The second semester will be atypical for Brazilians, but small and medium-sized businesses expect good results for Black Friday, and this is due to the consolidation of e-commerce in recent years. We at Nuvemshop are ready to support the merchant, striving to offer the best solutions integrated into the platform, a complete ecosystem and a differentiated service”, comments Luiz Natal, Nuvemshop platform development manager.
Discounts and gifts as sales strategies
The survey also shows what are the main sales strategies that small and medium-sized businesses are planning for this year’s Black Friday. About 59% of entrepreneurs will offer discounts on selected products, and 56% will provide coupons for discounts on products on the site. Other actions that retailers will use are gifts (33%), discounted product bundles (32%) and free shipping throughout Brazil (27%).
In addition, small and medium-sized enterprises intend to carry out campaigns for a longer period of time, not only on Black Friday. Slightly more than half of the entrepreneurs (53%) will have campaigns lasting a week; while 21% will bet on the 2 week promotion. Only 4% of SMEs will have shares exclusively on Friday.
“Consumers who shop online are already waiting for Black Friday to find better prices on all products, so discounts are the main attraction of promotions, as well as free shipping,” emphasizes Natal. “Despite the full return of physical retail this year, Brazilians have already incorporated online shopping habits into their daily lives due to the convenience and price differences found in e-commerce”.
Lack of preparation is a threat on Black Friday
The survey also shows that, despite optimism about the sales period, many entrepreneurs still do not feel fully prepared for the opportunity: 57% of entrepreneurs feel ‘more or less’ or poorly prepared, and only 31.5% of respondents already feel ready or very prepared. In terms of planning period and date organization, 35% reported starting activities between one month and fifteen days before Black Friday; and 34% prepare between one and two months in advance.
“The data shows that despite the optimism about the date, most entrepreneurs prepare a little in advance, and this can be a big generator of problems or frustrations. There is still time for calm planning and forecasting of all business needs related to inventory, promotional actions and logistics,” encourages Natal.
The main concerns of entrepreneurs
Among the concerns expressed by entrepreneurs, more than half of them (58%) cite the inability to sell. The main fears also reflect a possible lack of technical preparation in some areas involving online sales: 38% fear sacrificing profit margins to offer discounts; 33% are afraid of not having a sales strategy, and 25% that they will run out of stock.
“In preparation for the date, it is crucial that the retailer pays attention to some main points, such as pricing and transparency with consumers, without offering false discounts. It is also important to choose well which products will be discounted so as not to harm the profit margin, and to coordinate with suppliers any additional orders if the entrepreneur does not have enough stock. Another important step is to choose the best delivery options for the products, taking into account the customer’s profile,” adds the CEO.
The survey “Black Friday 2022 Warming Up” was developed with a sample of Cloudshop’s base of small and medium-sized online entrepreneurs during the month of August 2022.
(From advice)
