10 things you should consider as a Vendor in preparation for Cyber Monday
If you, as a vendor, are considering participating in Cyber Monday, you should consider a number of prerequisites as well as the pros and cons of participating in Cyber Monday.
- Enough positive reviews of their products – The willingness of customers to buy also depends on the price offered; however, they attach great importance to the reviews of experienced buyers. The aim is to get consumers from surfing the net to buying products.
- The actuality of the articles – Your products must not be “end-of-life” articles, which means that the purchase of the products must be guaranteed even after Cyber Monday. Insufficient stock levels lead to supply bottlenecks, which in turn leads to fewer sales. The number of pre-Christmas sales in the fourth quarter is exceptionally high compared to the rest of the year. The product quantity should therefore be planned well in advance, as too much or too little stock leads to potential problems.
- Purchase price reductions as a prerequisite for participation in Cyber Monday – Since Amazon demands reductions in the purchase price from the manufacturers, it is advisable as a vendor to first try to invoice the advertising allowance per item. This means that after the expiry of the promotion, the bill is calculated on a per item basis, thus avoiding excessive investments for the manufacturers. This also prevents Amazon from reselling the goods they bought at a discounted purchase price at the end of Cyber Monday. Usually Amazon makes a large profit margin with the remaining stock. This leads to a decrease in orders after the promotion.
- Content Verification – Ensure that each individual product is optimally presented and that the customer sees the benefits of the product at a glance.
- Exclusivity for Amazon – Amazon expects exclusivity for the products sold by retailers and the associated prices before, during and after the promotion. This means that the articles must not be undercut in terms of price for other platforms and shops.
- Extremely high traffic during Cyber Monday. The combination of increased traffic and sales leads to a significant increase in Cyber Monday traffic.
- Participation in marketing measures – Manufacturers are expected to participate in the extensive marketing measures with which Amazon massively advertises Cyber Monday. Vendors thus have the possibility to generate high turnovers within a very short period of time.
- No certainty in generating sales – As the competition in the different categories is very strong, it is not certain that a high turnover will be achieved during Cyber Monday, no matter how well you have prepared for the promotion.
- Slot Choice – The slot is the time when Amazon offers the different product deals of the manufacturers. The competent employees at Amazon manually insert the time slots and are therefore predefined and non-negotiable. The time determines, among other things, the probability of sales. If you get a traffic-weak period, you are less likely to achieve a high turnover than at a traffic-heavy point of time.
- Constant change – It is difficult to make forecasts about the evolution of this period, as Amazon is subject to rapid change. In the early years, Cyber Montag was always a single day, the Monday after Black Friday. “Cyber Monday Week” is the extended deal period that was inserted due to the success of Cyber Monday.