We are now into Q4, the most significant selling period for many eCommerce businesses – AKA “the money quarter”.
As Black Friday, Cyber Monday, and Christmas all approach, maximising your success during this period is essential but that requires careful planning and navigation. And when you add on the specific challenges characterising this year – from supply chain bottlenecks to the cost of living crisis – there’s a lot to contend with.
So here are six factors to consider.
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1 – Setting your goals
Some eCommerce businesses get carried away targeting revenue in Q4. But with heavy discounting and the growing increase in costs, you can end up actually coming away with less profit. Do not do this; revenue is vanity, profit is sanity. Instead, you should be aiming to maximise all time profit through aiming high and setting tangible goals. Once you hit those goals, you can hit the big bucks.
2 – Managing your cash and budgets
Q4 can be a busy and fast-paced time so without the right finance management, it’s easy to fall through the retail cracks. To gain a sense of control over your business, build a budget and review it each month. Whilst reviewing, check that your expenses and revenue are within a 5% accuracy and if not, adapt your budget. This not only gives you peace of mind in case you don’t hit forecast results, but also the option to seize opportunities if they do crop up. Make sure you keep expenses under control during Q4. Doing this right will make sure you finish the year with record profit, not just record revenue.
3 – Pricing and Discounting
It is easy to follow the general trend when it comes to discounting and follow suit because every other business is doing it. But that can be harmful to your profit. Instead, let your balance sheet dictate your discounting strategy. You need to balance your stock and cash levels; if your stock is high, consider discounting.
4 – Marketing
It can be daunting to try and stand out from the crowd and compete against the retail giants during the Money Quarter. But the way to maximise your sales as best you can is two fold. First, look to enhance your customer experience by optimising your website and develop a frictionless checkout experience that is fast and easy, as 50% of American shoppers are less likely to buy something if the checkout process takes longer than 30 seconds.
Secondly, social commerce is increasingly critical. You’ve no doubt already noticed the impact of Apple’s privacy update which has reduced the effectiveness of ads on Facebook. If you haven’t already, now is a good time to experiment with TikTok ads. TikTok’s secret sauce is its unique algorithm which is great for targeting, and its lower price point of course helps. Test out new tactics and create an impactful advertising and marketing strategy to help boost your sales.
5 – Getting the right support
As the great Aristotle once said ‘the whole is greater than the sum of its parts’. In other words, you cannot run a company smoothly without synergy between members of the team. You need to recruit high quality staff and partners to ensure they help build a campaign that stands out in the traffic of Q4 shopping and supports the business. On top of that, hiring the best talent is a worthwhile investment as they can make a campaign strong and attractive to consumers.
6 – Funding
Evidently, from these tips you are going to need cash up front if you want to win in Q4. Revenue-based financing can help alleviate seasonal pressure on cash flow by providing instant access to working capital. You can use this to buy inventory or invest in marketing and it’s only repaid after you make that money back, using a percentage of your daily sales. If business slows, you pay less. When you’re making it rain, they supply the buckets. Remember you do not always need to use the traditional banks. Explore your options and use funding that allows you to grow sustainably during Q4 and provides you with the most opportunity.
Now we are stuck into Q4, it is so important to get ahead and ensure you have planned all areas of your business down to the T. You want to target record profit and exhibit operational excellence. By following these eCommerce tips, you should be able to smash the holiday season to the fullest.
