As Black Friday kicks off the weekend’s sales frenzy, we’ve compiled some predictions to tide you over until the data rolls in.
The ARA expects a $6.36 billion spend across the four-day Black Friday/Cyber Monday weekend (November 24 – 27), up 3 percent from last year. Global discounts are predicted to reach an average of approximately 30 percent across the Black Friday-Cyber Monday Weekend.
The ARA and Salesforce have found online shopping traffic is up 5 percent year-on-year but hasn’t driven a significant change in sales – suggesting consumers are doing their research, making their own price comparisons and shopping thoughtfully and cautiously.
However, shipping software provider, Shippit expects an AOV increase this holiday period. The average order value increased 13 percent (from $154.79 to $175.48) from 2021 to 2022. This could increase further in 2023, with average order value for popular categories like ‘Sports and Outdoor Activities’ (10 percent up), ‘Garden and Pool’ (11 percent up) and ‘Automotive Parts’ (193 percent up) surging recently.
Shippit have used their data to track trends and found that in recent weeks there has been a 33 percent increase in ‘Cosmetics and Toiletries’ orders, and a 22 percent increase in ‘Arts and Culture’ (including paintings, art supplies etc) as shoppers snap up Christmas gifts and lifestyle deals.
Last year, Aussies made 40 percent more purchases during Black Friday, Cyber Monday than the Boxing Day Sales, as the event cements itself as the biggest on the calendar. Retailers like Myer are similarly expecting this trend will continue.
“The Black Friday sales are the perfect opportunity for shoppers to get a great deal at a time when every dollar counts,” ARA CEO Paul Zahra said. “As the country continues to be gripped by a cost-of-living crisis, the importance of Black Friday and Cyber Monday will be more significant than ever before,” he said.
“Despite a lukewarm spending projection for the pre-Christmas period, Black Friday this year is set to be record-breaking, as consumers seek out bargains amid intense financial pressure.”
As AI evolves and becomes more sophisticated, the threat of cyber scams has increased and looms over the sales season, with consumers preparing to stay vigilant. The 2023 McAfee Holiday Shopping Scams Study has revealed that 20 percent of shoppers have fallen victim to online shopping scams with cybercriminals capitalising on increased online activity.
“With AI emerging as a scammer’s weapon of choice, it’s crucial to arm yourself with the most advanced AI protection for your privacy, identity, and personal information,” advises Tyler McGee, Head of APAC at McAfee. “As AI has evolved, scammers have become more sophisticated, so it’s essential to stay vigilant and informed. Stay cautious, think before you click, and utilise AI-powered online protection products to keep the cyber grinches at bay.”
Fair Trading Commissioner NSW Natasha Mann warns shoppers to do their research.
“Shoppers should be mindful when looking at online deals, especially from overseas sellers. If it seems too good to be true, it probably is, and you may find it difficult to enforce Australian consumer laws,” Fair Trading Commissioner NSW Natasha Mann said. “Everyone should brush up on their rights if shopping during Black Friday Sales. Do a little research first, especially if you’re buying online, so you know the terms of a sale and when it may be delivered.”