Shippit data reveals frenzied start to peak season 

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By Published On: November 1, 20230 Comments

According to data from Shippit, Click Frenzy has hailed in peak season sales events with a bang as shoppers snatch up bargains ahead of the holidays. 

Shippit data shows peak season has officially kicked off with Click Frenzy successfully hailing in the sales event season with its Main Event last week. The online sales event, which took place from October 24 to 26, featured a variety of top Australian and international retailers across industries with major discounts on offer.

As economic pressures continue to mount, shoppers are being more savvy with how they spend. Recent Power Retail research has found that 82 percent of shoppers wait for a sales event to make their purchases, with 64 percent of those shoppers holding out for Click Frenzy itself. 

Despite economic pressures, shoppers flocked to the event. “We saw an incredible response from Aussie consumers flocking to to grab themself a deal during The Click Frenzy Main Event,” said Daniel Thompson, Head of Marketing at Click Frenzy. “October has become the new beginning of the retail peak season. We have seen from our Switched On benchmarking platform, that retailers participating in Click Frenzy have seen a 73 percent uplift in conversion rate, and a 229 percent uplift in revenue when compared to the previous 28 day average.”

Based on data from two million orders facilitated through Shippit – the last mile eCommerce logistics and delivery platform – both the volume and value of orders increased year-over-year, while Aussies are increasingly taking advantage of on-demand delivery options.

Shippit co-founder and co-CEO, Rob Hango-Zada commented on the data, saying: “We’ve seen events like Click Frenzy and Black Friday/Cyber Monday – which is no longer just a North American phenomenon – surge in recent years. Since 2021, Cyber Weekend has been the biggest sales event in the retail calendar, surpassing the traditional Aussie Boxing Day sales period. Last year the volume of Black Friday sales increased 27 percent YoY while, in spite of cost-of-living pressures, both the volume and value of orders was up at last week’s Click Frenzy. The demand that builds up during an extended period of cautious spending typically releases at the first big sales event of the season. Click Frenzy – like Black Friday later this month – is all about big sales, and many consumers are seizing the opportunity to grab a great bargain whilst retailers capitalise on the opportunity to shift excess stock.”

Shippit found that 2023 saw a 10 percent rise in order numbers on last year, and the value of orders has increased too. Average order value has grown 4.7 percent on last year from $107 to $112 per order. 

Interestingly, Click Frenzy sales are known to start even the day before Click Frenzy begins. The day before Click Frenzy ‘formally’ began, there were 40 percent more bookings than other days of ‘Click Frenzy’ in 2023. This trend seems to be strengthening too as customers catch on to the trend with this year doubling the 20 percent jump in 2022. 

We already know convenience is king for the modern shopper and Shippit has found a significant 180 percent YoY increase in OnDemand services like Uber. OnDemand now represents 1.3 percent of the share on the platform, which is indicative of Australians finding out this convenient option exists and taking more advantage of the convenience.

Going forward into November, Hango-Zada says retailers should be prepared for every scenario with fluctuating sales volumes expected. 

“Cost-of-living pressures will be top of mind in the weeks ahead after the big four banks forecast a rate rise in November. We anticipate shoppers coming out in force to stock up ahead of the festive gifting season, but the impact on December sales will be harder to forecast. Predictions across the industry vary from super-peak to super-low. Tighter household budgets could also have a knock-on effect into where they spend too. Value focused retailers like Kmart, Target and Big W who offer more affordable options and choice for customers, are set to benefit over ‘upmarket’ retailers,” he said.

“Ultimately, retailers are preparing for every scenario with flexible staffing and forecasting ensuring they have the right carriers to handle fluctuating volumes. OnDemand delivery has surged – up 180 percent YoY in the last 12 months, primarily skewed to food and pet supplies – and we anticipate that to continue in the months ahead as more Aussies take advantage of the convenience and price of online shopping.”

About the Author: Rosalea Catterson

Rosalea is the Editor of Power Retail. With a keen interest in consumer behaviour and tech, she covers everything ecommerce and hosts the Power Retail Power Talks Podcast.

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