As retail enters the holiday season, consumers are entering a time of huge discounts, cheaper delivery rates and back-to-back sales events. New data from Rakuten Marketing shows the ways that consumer behaviour responds to specific events, and what to expect for the holiday season.
From Single’s Day to Click Frenzy, the data shows that the non-stop sales events didn’t stop consumers from spending, with ‘record-breaking sales’ from both Alibaba and Click Frenzy.
According to Rakuten, Single’s Day saw a rise in online orders by 83 per cent compared to 2018 – the average order value (AOV) sat at $149.21. In 2019, Alibaba smashed its previous records by making $43 billion in the 24 hour sale. In only 93 seconds, the e-commerce giant broke its first record by selling more than $2 billion worth of goods. Many shoppers would stay up until the early hours of the morning to snag a deal – some staying awake until 2 am for the perfect shopping opportunity.
For Click Frenzy, the sale event saw orders increase of 54 per cent, with the AOV sitting at $133.85. Since its inception in 2012, the sales event has helped bolster further sales growth for many retailers. Earlier this year, Click Frenzy Mayhem experienced a rise in visitor numbers to 1.1 million, which is an increase of 46 per cent – this is huge for online retailers, big and small.
“Click Frenzy and Single’s Day are continuing to gain traction and grow in popularity. These sorts of shopping events have shifted the e-commerce landscape, changing consumer expectations and shopping habits for this time of year,” explained Anthony Capano, the Managing Director International at Rakuten Marketing.
“It’s vital for marketers to be across consumer trends within these sales periods which is why Rakuten Marketing is dedicated to bringing this data to light. With Black Friday and Cyber Weekend this week and sales continuing through to the end of the year, insights from Rakuten Marketing’s data provide a great opportunity for retailers and e-commerce marketers to be well-informed for decisions ahead.”
Single’s Day finds its biggest success in China, as it’s one of the only major sales events throughout the year. However, according to Rakuten, the second-largest driver for sales throughout the event was Australia (26 per cent), followed by Singapore (15 per cent) and South Korea (11 per cent).
For Aussie consumers, Rakuten Marketing found that apparel and accessories ruled supreme for Single’s Day. This category accounted for 43 per cent of the Australian orders, followed by beauty and personal care (nine per cent) and footwear (eight per cent).
“Aussie retailers expecting an influx of online sales in the lead up to Christmas must maximise the convenience for shoppers ordering online. They need to make sure that they have an easy and fast returns process. If retailers are selling online and have physical stores, they should enable customers to buy online and return in-store. This has the added benefit of being able to cross-sell or upsell the customer while in-store and if they update their inventory quickly, it means they can resell the return item quicker maximising sales profits,” explained Graham Jackson, CEO, Fluent Commerce.
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