Flash sales have emerged as an effective strategy to boost sales. eCommerce portals already offer the convenience of shopping along with easy price comparisons to help shoppers find the best deals. The flash sale makes products more affordable and well within the consumers’ reach. Businesses are known to offer up to 80% discount on select items during these sales. Such heavy discounts, provided for a limited period of time, tend to create a sense of urgency and fear of missing out. This psychological pressure tricks the consumers into shopping impulsively, thereby increasing the business revenue.
This article discusses flash sales and how they work. We have also covered how to launch such a sale and make the most of it. Read on to find out.
Understanding Flash Sales
A flash sale is a discount offer provided for a limited period of time. eCommerce portals can increase their profit through these sales. Statistics reveal that businesses have witnessed their revenue increase by 35% during flash sales. Such excellent returns can be achieved by adopting best practices and preparing thoroughly to meet consumer demand. Clearly defining the target audience, offering free shipping, and constantly monitoring the sales performance to improve can help make it a success.
Do Flash Sales Pay Off?
Before you invest in a flash sale, it is important to understand whether it is worth the effort. Here are some ways it can prove to be beneficial for your business:
1. Get Rid of Excessive Inventory
While certain products sell like hotcakes, others keep lying in the warehouse for months. Most of the products that are left unsold deteriorate with time, leading to loss. Flash sales can help get rid of such products. This is because people tend to purchase alternatives to their preferred brands when they are being offered at a considerably lower price. This does not only increase sales but also creates space for products that are more in demand.
2. Generate Greater Revenue
As already mentioned, you can attract more buyers by offering heavy discount offers. When the discount is provided for a limited duration of time, shoppers tend to make purchases quickly to avoid missing the deal. Many of them even purchase discounted products in bulk. Thus, flash sales can drive higher sales volume, leading to increased revenue. The key is to maintain a sustainable profit margin even while you offer significant discounts.
3. Attract New Customers
By promoting flash sales effectively, you can attract first-time shoppers. By offering good quality products, you can encourage repeat purchases even after the sale. Thus, it offers a great opportunity to increase your customer base.
4. Increase Website Traffic
Many shoppers may not necessarily make purchases; however, they are likely to check out the discounted prices of different goods. This often leads to an increase in website traffic and enhances brand visibility.
However, flash sales may not be a good idea in some cases. Let us find out the possible cons of these sales:
1. Incurs Loss
In an attempt to attract a large number of customers, many businesses offer heavy discounts and are left with meagre profit margins. At times, they end up spending more on marketing the sale, thereby incurring loss rather than churning profit.
2. Hampers Goodwill
Many business owners do not plan efficiently for the sale mainly because they do not anticipate a huge surge in the demand for the discounted goods. An increase in demand puts undue pressure on them and the inability to meet it brings a bad name to the organisation.
3. Sets Unrealistic Expectations
By offering flash sales frequently, businesses may end up setting unrealistic expectations for customers. Shoppers are less likely to purchase goods at full rates as they get used to shopping at discounted prices.
Steps to Launching a Flash Sale
Here are a few essential steps to launch a flash sale:
1. Define the Purpose
Define the purpose behind the sale before launching it. Whether it is meant to clear excess inventory or create a buzz about certain products or attract new customers. Plan strategically for the sale based on its purpose.
2. Select the Products Carefully
Selecting the right products can make all the difference. The kind of impact a flash sale makes largely depends on the products being offered and the amount of discount being provided.
3. Monitor and Maintain the Inventory Level
It takes effort to attract customers and convince them to purchase your products. It is crucial to keep tabs on the inventory level to meet the surge in product demand. Stockouts during flash sales can cause dissatisfaction among customers and damage the company’s reputation.
4. Select a Short but Strategic Time Duration
The shorter the flash sale, the greater the impact it is likely to create. This is because it is the feeling of urgency and scarcity that does the trick. The day and time must be selected strategically. For instance, many brands launch these sales around festival season as people are more likely to shop around that time.
5. Invest in Promotion
Promoting flash sales effectively on the right platforms to attract your target buyers is extremely important. It should be on the top of their mind and they should be tempted to check out the deals before they are gone.
6. Ensure Seamless Shipping
Offering high-quality products at discounted prices can create delight among customers. However, delayed shipping or inefficient handling of goods during the process can ruin the experience. It is important to ensure the products reach your customers timely and in good condition. Seeking services from a reliable shipping company such as Shiprocket is thus an essential step.
Examples of Flash Sales Done Right
Here are some of the brands that have nailed it:
Zara’s Limited-Time Collections
Zara’s flash sales are launched to attract fashion enthusiasts. The brand offers its exclusive limited-time collection which is available for a short duration of time. Its unique collection creates a buzz in the market, leading to a spike in the number of sales. Zara creates excitement by offering a limited-time collection at discounted prices.
Air Asia’s Super Flash Sale
Air Asia launches flash sales from time to time to attract travellers. Its Super Flash Sale in 2023 particularly grabbed attention as the company gave up to 50% discount on flight tickets. The discount could be availed for more than 3,000 destinations and was available for 24 hours. It sold numerous flight tickets within this duration. Besides, its number of app downloads and website engagement also increased substantially.
Color Pop Cosmetics’s 48-Hour Flash Sale
The brand usually puts up 48-hour flash sales that offer high-quality makeup products at discounted prices. It witnesses a huge spike in consumer demand during this period and meets them efficiently by maintaining appropriate inventory levels.
Top Tips for Running Flash Sales
Here is a look at some effective tips to run a flash sale successfully:
- Define your target consumers. This should help select the right products, prepare effective marketing campaigns, and create the kind of impact you are aiming.
- Creating pressure among the shoppers is the key to encouraging sales. CTAs like “limited time deal”, “don’t miss this one-time offer”, “only a few left – act fast” and “grab it before it’s too late” can help.
- Shoppers are always on the lookout for businesses that offer free shipping. Reports suggest that 48% of shoppers abandon their cart due to shipping charges and other additional costs. By offering free shipping, you can truly make a difference in the number of sales.
- It is suggested to constantly monitor the performance of your flash sale. Make necessary changes in your strategies to attract more buyers.
Shiprocket Engage: Enhancing Customer Experience with Every Interaction
Shiprocket’s exclusive communication tool, Engage 360 helps businesses communicate better with their customers. It has been designed to help D2C businesses manage their operations better and enhance customer experience. How? By enabling the customers to connect easily with the company officials to clarify doubts or raise issues. Chatbots have also been employed to answer customer queries.
By helping maintain a clear communication channel, Shiprocket Engage aims to help businesses lower RTO expenditure and increase revenue. It also enables brands to market their products effectively by offering automated marketing campaigns.
Several D2C brands trust Engage. They are using it actively to ensure seamless communication with their customers in addition to marketing their products strategically. The platform uses automation and analytics tools to engage customers and keep them connected to the brand.
Conclusion
Flash sales have helped innumerable businesses increase their sales and boost their revenue. Many have managed to increase their customer base by offering attractive discounts backed by high-quality products. However, several others have failed to create a mark even after offering attractive deals and heavy discounts. This is mainly because of their lack of planning. Low-profit margins and inefficient inventory management are two of the major reasons for the failure of flash sales. Businesses must select the products and price them strategically. It is also important to ensure that adequate inventory is available to meet consumer demand. Additionally, partnering with a trusted shipping carrier such as Shiprocket is of utmost importance.
