The coronavirus pandemic was a game-changer for just about every industry imaginable in a shockingly short amount of time. Retail got hit in both positive and negative ways, depending on how quickly they pivoted online.
Currently, brick and mortar store sales are projected to dip by 14% in 2020 alone. The grim reality is it could take up to five years for physical store sales to return to their pre-pandemic levels.
There is good news. Online retailers are seeing record-gains before, during, and after the major holiday sales surge. With more people staying home and avoiding crowds, ecommerce stores are experiencing unprecedented growth. Here’s a look at some of the trends we’re seeing for Black Friday and Cyber Monday sales in 2020.
Longer Sales Cycles
Black Friday and Cyber Monday shopping during 2020 experienced lasted longer than previous years. Instead of sales stretching over a long weekend and tapering off, this year’s holiday promotions started a few days before Black Friday and lasted for over a week. The extra time gave ecommerce stores an additional boost in revenue.
Online Shopping Soared
Foot traffic in stores may have dropped during Black Friday, but online shopping continued to gain traction for over a week. According to data from Sensormatic Solutions, foot traffic to stores on Black Friday dropped as much as 52%.
However, brick and mortar retailers who pivoted online during the pandemic likely saw gains during the online shopping frenzy. Adobe reported that Black Friday and Cyber Monday shopping surged 22% to $9 billion in record-breaking sales.
Amazon Won Big
It probably comes as no surprise that Amazon won big this year during Black Friday and Cyber Monday 2020. The ecommerce giant snagged 19% of the holiday weekend shopping sales, with Walmart coming in at 14%. Despite their command of the marketplace, there was still room for smaller ecommerce sites and businesses to compete. Stand-out ecommerce stores offered specialty niches, unique products, handmade items, and exemplary customer service.
Small Businesses Grew Online
Companies struggling under the financial weight of the pandemic realized there was a silver lining to the crisis. Small businesses that were able to pivot to online sales grew their revenue. Adobe Analytics reported that small retailers saw an average of 110% increase in online sales during the holidays. Some retailers used a mix of brick and mortar and ecommerce selling that combined curbside pickup.
Our Clients Saw Rapid Growth
Although Digital Nomad Designs and our clients experienced our share of challenges during 2020, there was also record-breaking growth:
1. Red Supps supplements store saw a 45% growth compared to last year’s sales during Black Friday and Cyber Monday weekend. They are online-only, and their sales surged also coincided with the UK announcing gyms would reopen.
2. SS Airsoft, a toys, games, and gifts store, saw a 32% growth compared to last year. They also have a retail brick and mortar store but reported more of their customers shopped online.
3. Ultrascopes sells unique healthcare supplies and saw a 13% growth. Their colorful items also make great gifts for the medical community, making it easier to snag command of the holiday shopping market.
4. Tribe9 crystals and gift store experienced a staggering 80% in online sales growth. They already have an established brick and mortar shop but were working on their online presence before the pandemic hit. Their efforts paid off, and they’ve seen steady growth throughout the year.
We’re all looking forward to putting the pandemic behind us and restoring our health, lifestyles, and businesses, but we can still embrace the changes in online shopping. As people grow accustomed to doing more things online, from telehealth appointments to an increase in shopping, they’re likely to adopt to some of the time-saving conveniences long after the world gets back to normal.
If you’re ready to launch your own online business or Shopify store, we would love to hear more about your project. Connect with an expert at Digital Nomad Designs by booking a free call here. We’ll discuss your goals or one of our SEO case studies to explore how our strategies can help grow your business.