This year’s End-of-Financial-Year (EOFY) sales contributed an estimated AUD 10 billion to the economy as bargain-savvy Aussie shoppers sought out deals and retailers reduced prices on a wide selection of clothes, shoes, accessories, homewares, furniture, and electronics.
But these sales only act as a precursor for the upcoming Black Friday and Boxing Day sales, signalling a massive opportunity for retailers.
In order to capitalise on peak season sales, Aussie retailers are facing intense pressure to adapt and meet evolving consumer expectations. How and where consumers shop continues to change, particularly when it comes to clothing, with online purchases up 19% on last year. The end-of-year sales period presents a golden opportunity to reflect on and implement learnings to make the most of consumer appetite to spend.
With online purchases continuing to grow, positive experiences with shipping and returns have never been more important, and can even drive customer loyalty and lead to repeat purchases. By ensuring they deeply understand their customers, making returns their competitive advantage, and implementing smart shipping solutions, retailers can stand out in a fiercely competitive landscape.
Get a solid understanding of your audience
Understanding your target audience is the cornerstone of successful retailing. By delving deep into consumer preferences, behaviours, and values, retailers can create tailored experiences that foster loyalty and drive sales. In today’s dynamic market, where consumer expectations are constantly evolving, this knowledge is more critical than ever.
To stay ahead, retailers must closely monitor consumer sentiment and confidence. This insight empowers businesses to adapt their offerings, including pricing strategies or delivery options, to align with changing demands. For instance, as economic uncertainty persists and consumers grapple with the possibility of more interest rate rises, understanding their priorities and what truly resonates with them can be the difference between success and failure.
While price and promotions remain significant drivers of consumer spending, a growing cohort of shoppers prioritises values alignment. Sustainability is a cornerstone of this shift, with nearly half of Australian consumers considering its impact when making retail purchases. This is no longer a trend but a fundamental change in consumer behaviour. Retailers who genuinely integrate sustainability into their business model will not only resonate with this conscious consumer segment but also position themselves for long-term success in an increasingly competitive market.
Make returns your competitive advantage
Returns can be a strategic advantage for businesses if implemented effectively. ShipStation’s recent E-Commerce Delivery Benchmark Report found cost sensitivity remains paramount, especially around delivery and returns,
The majority (65%) also expect free returns, and when an item doesn’t fit, half (51%) of shoppers exchange their purchase for a different size or style with the same retailer. This indicates many Australians prefer trying on clothes from the comfort of their home and demonstrates the need for streamlined, transparent, and innovative return policies.
Access to easy, automated returns, such as managing return requests directly online without contacting customer support or instant refunds, can make a world of difference when it comes to reassuring customers and can help mitigate cart abandonment.
In addition to easy returns, retailers can go a step further and ensure their product listings are accurate and detailed. Comprehensive sizing guides, high-quality photos, customer reviews, and a “true size” rating system can help shoppers make informed decisions, reducing the likelihood of returns and their environmental impact, and enhancing customer satisfaction.
With two in five (40%) consumers deterred by inconvenient returns, businesses should approach their returns policy and capabilities as a critical part of their business strategy. Simplifying the return process with options like QR codes for easy drop-offs and prepaid satchels can help to exceed customer expectations and secure their loyalty.
Implement smart shipping strategies
The battle for customer loyalty intensifies during peak sale periods, and efficient shipping becomes a key differentiator, especially as almost half (48%) of Aussies said the cost of delivery is the most important factor when shopping online.
By reevaluating providers and exploring new options. It’s important not to underestimate the power of negotiation or the benefit of partnering with multiple couriers. This can open the door to flexible delivery options that entice customers, like next-day or tracked shipping, and even makes free returns more feasible through competitive rates.
Peak sales periods are not only a time for businesses to boost sales but also an invaluable opportunity to implement learnings. By analysing what worked and what didn’t during EOFY sales, and implementing these strategies, businesses can set themselves up for future success, ensure smooth sailing during peak periods, and build stronger customer loyalty.
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