As May’s Click Frenzy sales close, shoppers are turning their attention to the next opportunity to snap up great deals from their favourite brands. Here we give you top tips to maximise End of Financial Year (EOFY) sales on marketplaces.
For brands, EOFY sales are an excellent opportunity to clear out excess stock to prepare for new arrivals in the new financial year.
EOFY has evolved from a key sales event targeted at businesses looking to pick up discounts on office related purchases. Consumers are now on the hunt for exceptional sales at reduced prices. Brands need to keep both audiences in mind when preparing their EOFY strategies.
In 2022, Roy Morgan forecasted that $8.8 billion would be spent by Australians during EOFY sales with 6.2 million people (31% of Aussies aged 18+) planning to participate in the sales, spending an average of $1,420 each.
IMPORTANCE OF EOFY IN 2023
As we know, cost of living pressures have been impacting Australian households for much of the year. EOFY presents a key opportunity for consumers to purchase items they’ve had their eye on, for a budget-friendly price.
For brands, EOFY sales is a major opportunity to continue to build brand loyalty with existing customers as well as convert first time shoppers in market for your product.
Feedback from some brands that TWENTY TWENTY works with has been about losing margin when discounting. Brands need to think about the long term value of converting new customers. When Crocs participated in a major online sales event, 81% of sales were from new customers.
A recent e-commerce report by Australia Post found that 70% of Australians intend to be more mindful of how they spend their money in 2023, with the expectation they’ll continue to shop online.
Convenience and great deals are the main drivers for consumers’ online shopping habits, and it’s expected that shoppers will be more driven than ever to key sales events.
KEY EOFY RETAIL CATEGORIES
Tech & Electronics
No surprises here – forecasting by Roy Morgan ahead of last year’s EOFY put laptops, headphones, mobile phones, TV’s, and home entertainment devices as high performing categories for EOFY sales. These products are hot items for both businesses and consumers.
Fashion and footwear
Workwear has always featured in EOFY sales, we’re now seeing more fashion brands and labels make a big play in EOFY sales. Both men’s and women’s fashion and footwear brands will have major reductions, especially as brands and department stores try to clear seasonal stock.
Homewares + Bedding/linen
Shoppers can pick up great deals on quality homewares and linen from brands that might usually be out of their price range during EOFY sales.
Top beauty brands and department stores will have great deals on beauty products. David Jones already have a webpage dedicated to EOFY live in May preparing customers about the sales categories, with Beauty featuring on the list.
Home and Kitchen appliances
Given inflation and cost-of-living pressure, it’s expected that many consumers will wait for key sales events like EOFY to get a great deal on home and kitchen appliances they’ve been eyeing off.
Baby and Kids items
Kidspot online platform are preparing parents for this year’s EOFY with reminders about the hot items from last year – expect sales on nursery products, feeding and baby care essentials, baby and kids clothes, car seats, toys and bedding.
TOP TIPS TO PREPARE FOR EOFY
- Align your offers – have a compelling offer for your customers, and remember, it’s ok to have a separate product selection on your marketplaces v your own website
- Optimise your content and products to increase the possibility of being seen in more searches. Eg – add keywords related to EOFY. For eBay use the subtitles and use urgency – 30% off will only last 7 days
- Inventory: Make sure you have enough depth and that you’re using an inventory system that will stop you from overselling if you sell on multiple-marketplaces
- Amplify your offers: Work with the marketplaces and submit your offers for additional exposure
- Marketplace advertising: Utilise the advertising options marketplaces now offer, and give extra support to your product listings. Eg – eBay Promoted Listings or eBay PPC.
- Marketplace sales events are a great way to attract first-time customers and start the journey of introducing your brand to them. How will you nurture these new leads to build brand loyalty?