You may be surprised to know that Black Friday sales actually saw a decrease from 2020 by about 14%. This was likely to do with supply chain issues and the inevitable drop in ecommerce from peak pandemic levels. However, this drop off is not indicative of the festive shopping season as a whole. Indeed, it is expected that more people will actually complete their Christmas shopping online than ever before. Here’s our opinion on why and our choices for trends that ecommerce sellers should be preparing for over this festive season.
Ecommerce Will Still Flourish This Christmas
It is being estimated that European ecommerce revenues will surpass 396 billion euros by the end of 2021. This shows just how popular shopping online has become since the pandemic. Undoubtedly, this will continue with many surveys suggesting that shoppers will carry out the majority of their Christmas shopping online this festive period.
Sellers should be aware of this and prepare their delivery options accordingly. Couriers will be under immense stress over the coming weeks so it is worth suggesting to your customers to get their orders in early. Many retailers are advertising their delivery ‘cut-off’ points, essentially informing their potential consumers of the latest that they can make a purchase and receive it before Christmas day. This is a wise strategy for sole traders to imitate.
Online Marketplaces Set To Dominate This Christmas
Online marketplaces have become the first port of call for online shoppers. Recent research has shown that the majority of consumers now use online marketplaces as a search and comparison tool when they’re looking for a product. Online marketplaces in Europe are thought to have enjoyed revenues totalling somewhere between 120-150 billion euros in 2021. This means they fall just shy of being responsible for half of all the European ecommerce market sales.
Sellers should be aware that the popularity of each marketplace differs by country. As you might expect, Amazon is the dominant platform in most countries. However, Allegro is the dominant force in Poland and Bol.com is the preferred platform for most Dutch consumers. Evidently, consumers tend to prefer to use their domestic platforms. Sellers should keep this in mind when trying to sell over Christmas and into the new year. If a lot of your customer base is abroad, perhaps you should look into setting yourself up on their domestic online marketplace. This would obviously require VAT registration, but that’s where we come in…
If You Are An Ecommerce Seller, We Can Help You
If you have any concerns about dealing with the upcoming holiday season, we at J&P have the qualifications and knowledge to help you plan ahead, so please do not hesitate to get in touch should you have any further questions about selling on online, or if you need any help with adapting your business.
We can get you VAT registered across the EU and can file your returns. Essentially, we sort out your tax so you can deal with selling your products. You can contact us at enquiries@jpaccountant.com, on our social media, or give us a call on 0161 637 1080. Finally, we would just like to wish you a merry Christmas from all of us here at J&P!
