JANUARY 25, 2013 – TORONTO, ON – The 2012 holiday season indicated very different purchasing behaviours than seen in previous years, with sales spiking on Cyber Monday at $1.98 billion, but tapering off thereafter, according to Adobe’s Digital Index. Despite 10 days throughout November and December that surpassed $1 billion in sales, MasterCard Spending Pulse reported that total US holiday retail sales showed a meager 0.7% growth over 2011.
In spite of lower than expected holiday sales and the fear of economic uneasiness that came with tragedies such as the Newtown Shooting and Hurricane Sandy, and the 17% of shoppers who said the Fiscal Cliff bill affected their purchase behaviour in a recent Reuters/Ipsos poll, OrderDynamics clients once again generated significantly higher sales and growth rates than industry averages. In November and December 2012, the OrderDynamics platform processed 47% more orders and generated 55% more revenue over the same time in 2011, compared to comScore’s report of a 15% increase in total online sales year over year for the holiday season.
Sixty-one percent of OrderDynamics orders came from clients launched on their eCommerce platform prior to 2012, generating 27% more orders and revenue compared to last year. The remaining 39% of orders were generated by the new eCommerce sites launched in 2012, encompassing 38.8% of total holiday revenue for OrderDynamics clients in 2012.
The company credits the scalability of its cloud-based platform as a key factor in their clients’ impressive holiday growth, absorbing extreme traffic surges and order spikes throughout demanding retail seasons. In addition, OrderDynamics’ dedicated Account Managers stay abreast with industry and consumer trends, and actively work with clients to identify areas where they can leverage the broad OrderDynamics toolset to optimize eCommerce strategies and execution. This season, incentivized shopping tools and shopping cart recovery features within the OrderDynamics platform and its OD H.I.V.E™ Ecosystem - a network with more than 100 pre-built integrations of third party tools - allowed retailers to re-capture the sales and increase average order sizes.
"The OrderDynamics eCommerce platform and integrated Order Management System are cloud-based solutions which help our clients get to market faster while also taking advantage of the new features and functionality we're continuously adding," said Michael Benadiba, CEO at OrderDynamics. "As a result, our clients can focus on innovation and creating best of breed online shopping experiences to maximize sales during peak seasons."
Additional Canada and Boxing Day Trends
For Canadian retailers, the holiday season showed promising results, and stronger eCommerce growth than in the US. MasterCard’s Spending Pulse reported Canadian eCommerce spending was up 26% in December, far overshadowing the 12.6% increase seen in US online sales. Contributing to 6.6% of total retail sales for December, Canadian online shoppers showed significant growth in confidence in shopping on eCommerce websites. Total Canadian retail sales showed a 1.6% increase over December 2011.
“ECommerce in Canada is growing at a rapid rate and its pace is expected to continue over the next few years,” continued Mr. Benadiba. “Canadians are known to be extremely savvy web users, and Canadian retailers are responding to consumers by delivering sophisticated online shopping experiences and outstanding promotions. It’s a very exciting time for Canada’s retail industry,” Mr. Benadiba concluded.
OrderDynamics Clients Enjoy 55% More Sales in 2012 Holiday Season While Far Exceeding Industry Average
OrderDynamics Monthly Google Updates Report – January 2013
After a few months of heavy changes across
Google Platforms, December showed fewer changes and some useful improvements to
Search, AdWords and Analytics to help improve the user experience with Google.
Google
Search
Changes to Google Search in December were
heavily focused on multi-language queries, and those related to simplifying
travel plans.
On December 4, Google updated Knowledge
Graph to support multi-language searches in Spanish, French, German,
Portuguese, Japanese, Russian and Italian. This would enable queries in these
languages to display same-language search results rather than that based on
their search location (for example, an Italian search in Canada would yield
both English and Italian results instead of just English results). Knowledge
Graph was also optimized later in the month to display a Carousel with
information and activities within a searched travel destination.
A day later, Google announced the redesign
of Quick
Answers search, which instantly displays at the top of SERPs information
relevant to travel such as currency exchange rates, time difference, and the
ability to check flight status by simply searching terms like “Euro exchange
rate”, “time in country x” or the flight/airline number. Later on December 19, Flight
Explorer was launched to help plan vacations by displaying flight times and
fares to multiple destinations on several dates, allowing users to plan
extended trips across multiple stops. Flight Explorer also enables users to
calculate total cost of a trip by including baggage fees, WiFi-enabled flights
and price differences across seating classes; this function is available for
flights to any destination that originate in Canada and the US.
The Hotel Finder feature also became more
localized in France, Germany, Switzerland, Portugal, Spain, Ireland, Italy and
the UK that would display price, availability and Zagat rating.
Google tweeted on December 21 that they had
rolled out the 23rd
update to Google Panda. The Update was estimated to affect 1.3% of English
search queries, compared to 0.8% impact with the November Update. Some search
engine optimization experts were surprised that there was an update at all in
December when such changes could affect online retailers during the height of
the holiday retail season.
Google
Adwords
In December, Adwords introduced an additional
column to the search term report that would display which keywords trigger
an ad to show up when searched. This allows Adwords users to easily identify
keywords that should be used to trigger their campaigns, queries that maybe
irrelevant to the ad but trigger it anyway, and how counter-keywords can be
used to prevent certain irrelevant terms from triggering an ad unnecessarily.
Various updates to Double
Click Search were launched on December 18:
- Offline conversions event API
- With this API, Adwords users can automatically upload conversions from in-store transactions and call centre orders, and edit conversions to account for returns, credits or fraud.
- Google Analytics website data
- This feature works with the recent Google Analytics Integration with the Adwords platform to help understand how click-throughs from search affect how customers interact with a website.
- Formula Columns
- These additional columns can be added to display customized data based on calculations preset by the Adwords user.
- Web Query
- This provides a URL that allows report data to be refreshed and downloaded to Excel so that reports do not need to be manually imported and downloaded.
Google
Analytics
On December 6, Google Analytics updated Tag
Manager, which was launched in October to provide built-in tag templates that
automatically input the tag into a webpage’s code rather than having to copy
and paste it manually. The update saw the introduction of new Vendor
Tags to integrate solutions from various technology vendors for measurement
in Analytics. The following Vendor Tags are currently available, with more to
be added later:
- comScore Unified Digital Measurement Tag
- Turn Conversion Tracking & Data Collection Tags
- Media6Degrees Universal Tag
- Bizo Business Data Insight Tag
- Neustar Ad Advisor Tag
OrderDynamics featured in Dx3 Canada’s Guide to eCommerce in Canada
Dx3, Canada’s
biggest Digital and Retail Trade Show, hosts a blog entitled the Dx3 Digest
which focuses on all things pertaining to digital retailing, advertising and
marketing in Canada. In a Guide
to eCommerce in Canada, Dx3 is covering key tenets and best practices for
setting up an eCommerce website to accommodate the growing online and multichannel
retail market in Canada. For their Development Platform section they recently
featured insight from OrderDynamics® President, Michael Turcsanyi.
As a basis for building an eCommerce
business in Canada, the feature discusses the importance of eCommerce as Canadian
retail evolves, and common misconceptions and challenges in eCommerce. Dx3 asks
Michael Turcsanyi to explain the role OrderDynamics plays in the Canadian eCommerce
and multichannel retail environment, and how the OrderDynamics Platform and
Team address the needs of businesses entering and growing in eCommerce.
Mr. Turcsanyi explains how patience, a
dynamic toolset for order management, fulfillment and marketing, and a
bulletproof plan can help retailers build an online business that is equipped
to keep stride with Canadian eCommerce as it continues to grow at a rapid pace.
Read the full feature here.
OrderDynamics is Heading to the NRF BIG Show 2013!
OrderDynamics® is heading to the NRF’s 102nd
Annual Convention & EXPO, better known as Retail’s BIG Show. The EXPO will
take place next week, January 13-15 at the Jacob K. Javits Convention Center in
New York City.
Last year, the BIG Show attracted over
25,500 attendees, and this year is expected to be even bigger with over 500
exhibitors and sponsors, including major companies such as Google, Walmart,
Walgreens, Starbuck, Mango and many others.
OrderDynamics is looking forward to engaging with
clients, prospects and partners, as well as attending valuable speaking
sessions by retail experts and professionals on mobile and digital retail,
marketing and brand management, merchandising, IT, global expansion, the future
of retail and more.
The Coca-Cola Happiness Lounge will be an
excellent, casual networking opportunity for NRF Members, in which
OrderDynamics hopes to connect and gain valuable insight from fellow attendees.
For more information on the BIG Show, visit
NRF.com. Check back after the show for OrderDynamics’ Recap.
Internet Retailer on OrderDynamics and Selecting an eCommerce Platform
Internet Retailer magazine kicks off the New
Year with a special feature on top priorities for e-retailers including social
media and selecting the right e-commerce platform.
The January issue of Internet Retailer presents
the social media formula that can yield the best sales and marketing results
for e-retailers. Social media has been identified as a key factor in online
marketing for some time, however, the question of how to do so effectively has
still remained. In this issue, Internet
Retailer outlines the social media initiatives of the top 3 e-retailers listed
in the Internet Retailer Top 500, and how they have efficiently utilized
aggressive social media campaigns to generate revenue and boost traffic.
Also in the January issue is a feature on
how e-retailers can ensure they select the right eCommerce platform for their
business goals. One of OrderDynamics®’ newest clients, Laura Canada, was
highlighted in the article, crediting OrderDynamics H.I.V.E.™ integrations as a major selling point of the SaaS-based platform. A key factor
in selecting the OrderDynamics Platform - as stated by Laura Canada’s eCommerce
Director, Sam Barnes – was the
integration with Canada Post, enabling fulfillment capabilities such as
Real-Time Rate Lookup, Real-Time Order Tracking, Ship-to-Post-Office, and
Generate Return Label.
According to Mr. Barnes, OrderDynamics was
the right choice because the Platform is built on functionalities and
capabilities that were vital in facilitating the online customer experience
Laura Canada wanted to provide, a consideration that John Kinsella of
FitForCommerce says is imperative when selecting a vendor to power an online
storefront. Kinsella states that while individual goals may differ, all online
retailers must evaluate eCommerce platforms based on functional abilities, and
vendor support and relations. Other
points to consider are whether the Platform provider addresses mobile, product
content, and social media as well as whether it provides centralized multi-channel
capabilities for retailers whose business is also based on a physical
storefront, key items that are present in the OrderDynamics
On-Demand eCommerce Platform.
Read the full article here.
Pile of Pillows Makes Their eCommerce Debut with OrderDynamics
OrderDynamics would like to congratulate Pile of Pillows on
the launch of their eCommerce site on the OrderDynamics On-Demand Commerce
Platform.
Pile of Pillows offers high quality, hard to find home décor goods including duvet covers, bed sheets, pillows, towels, and more. The Canadian-based e-retailer prides itself on offering North American shoppers the best deals in a fresh and fun online shopping experience.
Modern and up with the trends, PileofPillows.com meets consumers’ growing demand for convenient and affordable ways to find and shop specialty bedding and home items online. The website features a clean and stylish design with high-resolutions photos of all items, detailed product descriptions and sizes, and in-depth category breakdowns to create an online shopping experience that provides the ease and comfort of shopping for personal home items in a retail outlet. In addition to browsing by brands, categories and prices, shoppers can search products by unique attributes such as sleep position, product sizes or even fabric.
A key feature of
PileofPillows.com is its online Buying Guide, which helps shoppers choose the
right bedding, sheets, towels and pillows with detailed descriptions of the
types of items that are available. The Pillow Finder
is an excellent tool, which identifies the perfect product for each sleeping
style based on materials used, as well as the preferred head position of the sleeper.
 |
| PileofPillows.com's Find the Perfect Pillow Guide |
The e-tailer leverages key integrations in the OrderDynamicsPlatform that create a sophisticated and interactive online shopping experience,
equipped with tools like Social Sharing, Email-A-Friend, Mini-Cart, and
Clickable Breadcrumbs to enable efficient shopping and simplified
navigation.
 |
| PileofPillows.com's Support Guide |
Other great features include personalized recommendations
and cross-sell suggestions in the Product pages, running through to Check Out
pages, as well as a scrolling carousel of Featured Products on the site’s home
page.
The new site is also outfitted with the OrderDynamics Endpoint solution for enhanced order management and fulfillment. OD Endpoint™ will enable Pile of Pillows to manage inventory levels, and facilitate order processing and shipment directly from their own warehouse. The Endpoint solution also integrates with various shipping carriers, so that PileofPillows.com can provide their customers with real-time shipping total calculations, order-shipped emails and order tracking codes.
 |
| PileofPillows.com's real-time shipping total calculator |
Happy Holidays 2012 from OrderDynamics!
As 2012 comes to an end, OrderDynamics
would like to extend our gratitude to all of our partners, clients and vendors
who helped make this year an incredible success. For OrderDynamics, 2012 has
been a year full of new and exciting opportunities including speaking
engagements, conferences, new technology integrations, and site launches – and
the support from our friends has been much appreciated.
Our
Connected Commerce-Retail Vision
This year, we launched an all-new website with client videos to highlight the newest addition to our platform technology, Connected Commerce – a system that seamlessly supports and manages multichannel retail. Our Platform Team also produced enhancements to our Order Management System that include Globalization features and Loyalty Program Capabilities. These new implementations have helped build our reputation in the industry, and fueled our unprecedented Canada Post Integration, which offers services like Ship to Post Office, Real-Time Order Tracking, Real-Time Rate Lookup and Generate Return Label. The OrderDynamics Platform is Canada’s most comprehensive ever.
This year, we launched an all-new website with client videos to highlight the newest addition to our platform technology, Connected Commerce – a system that seamlessly supports and manages multichannel retail. Our Platform Team also produced enhancements to our Order Management System that include Globalization features and Loyalty Program Capabilities. These new implementations have helped build our reputation in the industry, and fueled our unprecedented Canada Post Integration, which offers services like Ship to Post Office, Real-Time Order Tracking, Real-Time Rate Lookup and Generate Return Label. The OrderDynamics Platform is Canada’s most comprehensive ever.
Recognition
from Key Analytics and Industry Experts
We are extremely proud of the recognition we have received this year from various industry experts, including being named a Vendor to Watch by Internet Retailer, and identified as a Leading Platform Provider in the 2012 Forrester Research SMB eCommerce Solutions Report. OrderDynamics also became a member of the National Retail Federation and Shop.org communities.
We are extremely proud of the recognition we have received this year from various industry experts, including being named a Vendor to Watch by Internet Retailer, and identified as a Leading Platform Provider in the 2012 Forrester Research SMB eCommerce Solutions Report. OrderDynamics also became a member of the National Retail Federation and Shop.org communities.
Thought
Leadership at Leading Retail Conferences
In addition, OrderDynamics exhibited at 8 different trade shows throughout Canada and the US, this year being the first time we have had a presence at Shop.org, STORE, Retail West, eTail Latin America, and the first ever Dx3 show. These shows presented us with speaking opportunities and interviews with Internet Retailer, Retail TouchPoints, Retail Council of Canada, and Amber Mac (to name a few). OrderDynamics was also invited to moderate an “How to Enter eCommerce” discussion panel at Dx3 last January, and provided an information session entitled “Getting eCommerce Right” at STORE2012 in June. OrderDynamics showed excellent thought leadership in providing industry professionals with information, best practices and experiential advice.
In addition, OrderDynamics exhibited at 8 different trade shows throughout Canada and the US, this year being the first time we have had a presence at Shop.org, STORE, Retail West, eTail Latin America, and the first ever Dx3 show. These shows presented us with speaking opportunities and interviews with Internet Retailer, Retail TouchPoints, Retail Council of Canada, and Amber Mac (to name a few). OrderDynamics was also invited to moderate an “How to Enter eCommerce” discussion panel at Dx3 last January, and provided an information session entitled “Getting eCommerce Right” at STORE2012 in June. OrderDynamics showed excellent thought leadership in providing industry professionals with information, best practices and experiential advice.
High
Profile Omni-Channel Site Launches
The OrderDynamics Platform experienced substantial growth, launching 8 new eCommerce sites for reputable brands. Some of our most exciting launches include Canadian retailers such as Murale.ca – a sub-brand of Shoppers Drug Mart offering high-end beauty products and cosmetics. The launch of Laura.ca was also a highlight event for OrderDynamics by entering eCommerce for the first time after over 80 years in retail, and becoming our first client to utilize the Canadian Post Fulfillment Integration within our H.I.V.E. Ecosystem. We launched Inova.com.mx, a leading direct response marketer in Mexico City and no. 17 on the Internet Retailer Top 300 Latin American Retailers Guide in 2012. Additionally, OrderDynamics launched 5 new mobile commerce websites, helping clients invest in Connected Commerce.
The OrderDynamics Platform experienced substantial growth, launching 8 new eCommerce sites for reputable brands. Some of our most exciting launches include Canadian retailers such as Murale.ca – a sub-brand of Shoppers Drug Mart offering high-end beauty products and cosmetics. The launch of Laura.ca was also a highlight event for OrderDynamics by entering eCommerce for the first time after over 80 years in retail, and becoming our first client to utilize the Canadian Post Fulfillment Integration within our H.I.V.E. Ecosystem. We launched Inova.com.mx, a leading direct response marketer in Mexico City and no. 17 on the Internet Retailer Top 300 Latin American Retailers Guide in 2012. Additionally, OrderDynamics launched 5 new mobile commerce websites, helping clients invest in Connected Commerce.
Explosive
Black Friday/Cyber Monday Results for Our Clients
This year’s Black Friday/Cyber Monday yielded excellent results for OrderDynamics retailers. The OrderDynamics Platform processed 162% more orders over the same weekend last year, generating 178% more revenue. The sophisticated enhancements to the OrderDynamics Order Management System allowed the Platform to process 154% more transactions, attesting to the scalability of the Platform.
This year’s Black Friday/Cyber Monday yielded excellent results for OrderDynamics retailers. The OrderDynamics Platform processed 162% more orders over the same weekend last year, generating 178% more revenue. The sophisticated enhancements to the OrderDynamics Order Management System allowed the Platform to process 154% more transactions, attesting to the scalability of the Platform.
We are extremely proud of all that we’ve
accomplished this year, and are excited to continue developing our Platform,
providing innovative solutions and service to our customers, and helping them
grow their business in the new year. From the OrderDynamics Family to yours,
Seasons Greetings and Happy New Year!
OrderDynamics Monthly Google Updates Report – December 2012
Last month we reported that businesses saw
minimal search results fluctuation in November; it would appear that Google was
putting off updates until November, as they reported several updates while
there were also suspicions of additional updates that have not been confirmed
by Google. Google Adwords continued to make updates and enhancements every few
days as seen in October, while Analytics made one small but significant change.
Google
Search
Google made a Panda Refresh on November 5,
just over five weeks after the last Panda change. The refresh was suspected by
some sites, leading Google to confirm via Twitter that 1.1% of English
searches in the US would be affected, while 0.4% of global searches would
yield changes noticeable to a ‘regular user’ – e.g. someone not technical.
Two days later, Google announced a Page
Rank update for Google Toolbar users (for searches via the Google Toolbar).
These updates are generally infrequent – the last being in August – and as Page
Rank contributes but does not weigh heavily in Search Rank, many SEOs
considered this update very minor.
It was suspected that an update to Google
Images Search was being rolled out November 15 to 16, as many SEOs and businesses
reported seeing a drastic change in the way images were being indexed. It was
noted that ALT text and a keyword-rich file name appeared to hold less
relevance with respect to image search placement. However, Google did not
confirm whether there was an update.
On November 21, Google implemented an
official Panda
Update with less drastic results than the Refresh earlier in the month.
Google tweeted that 0.8% of searches would display a noticeable difference.
Google
AdWords
In October, Google announced that changes
to Impression Share Reporting would take place in November. Impression Share
refers to the amount of overall ad space on the web that a single business
encompasses. According to AdWords
Support it is calculated based on the total number of impressions an
Adwords campaign receives divided by the number of impressions the business was
qualified to receive. Google confirmed that updates to Impression Share Reporting
went live November 7, and included features that allow for improved display and
easier reading of reports; new filters, charts and rules to segment the reports
including “Hour of Day” segmentation; and improved calculation of Impression
Share.
Google unveiled AdWords
Editor 9.9 on November 12, with major updates and improvements to the
following:
- Google Display Network - Google implemented the Flexible Reach panel to easily manage flexible reach settings.
- Import and Export Improvements - changes to various campaign settings (including flexible reach) and how AdWords handles duplicate ads pointing to different URLs by uploading changes via CSV.
- Device Targeting - the release only applies to Blackberry devices currently; it allows AdWords users to point ads specifically to Blackberry users.
On November 15, AdWords announced
significant improvements to location
targeting:
- Airport Targeting - allows AdWords users to target ads to the devices of those who are in and around airports.
- Location Extensions - a link below Sitelinks in the search results stating the location (or nearly location for a chain business) that displays a map when clicked on.
- Better Location Matching - this allows AdWords users to extend the reach of their ad campaign to just outside a given postal code area, enabling them to attract people who may be travelling or who are close by but not within the postal code area
- Conversion Reporter - Analytics within AdWords enable conversion tracking for each Location Extension
AdWords also updated the Call Extensions
feature, as mentioned in last month’s report, which covers up a business’ phone
number in an AdWords ad with a Google Forwarding number to allow for phone
conversions of AdWords campaigns. The November 29 update made the Click to Call
feature available for ads on mobile apps.
Google
Shopping
Just in time for the holidays, Google also
released on November 13 exciting updates to the new Google Shopping model. The
Holiday Toy Collection is a section within Google Shopping which retailers
can use to provide enhanced views of toys including 360 View, which Google
hopes will instill confidence in online shoppers by providing the tools to
mirror the in-store shopping experience – something that many shoppers struggle
with when purchasing toys online. Along with the Holiday Toy Collection, Google
also unveiled Shortlists, which is essentially a wishlist or shopping cart of
items found in the Google Shopping network that can be shared with friends, and
allows for side-by-side comparisons of related items – also in an attempt to
channel an in-store experience.
One day later, Google announced that the
new Google Shopping, which officially changed over in North America on October
17, is now available in 10
more countries: UK, France, Germany, Italy, Switzerland, the Netherlands,
Spain, Brazil, Japan and Australia.
Further updates to the Google Shopping
model include the display of promotions for items in Google Shopping that have
gone on sale; the ability for shoppers to read reviews written by people they
know; view visually similar items; and the release of the Google Shopper 3.0
app for Android devices.
Google
Analytics
In November, Google Analytics introduced Enhanced
Link Attribution. The feature applies to in-page analytics, and allows for
tracking of user behaviour regarding individual links on a single page. Site
owners can implement the feature with two lines of code in their current
tracking snippet, and the click-through data provided is relevant even if links
lead to redirects or are triggered by Java Script.
Inova.com.mx Re-Launches its Global Website with OrderDynamics
OrderDynamics, Canada’s leading on-demand
commerce platform provider, would like to congratulate Inova.com.mx on the re-launch
of their Spanish-language eCommerce site on the OrderDynamics Platform. The
launch marks the first in Latin America for OrderDynamics.
Inova: Mexico's Leading Direct Response Retailer
Inova is one of Mexico’s largest online retailers (and no. 17 on Internet Retailer’s Top 300 Latin American Retailers Guide) and has offered innovative products for health and beauty, sports and fitness, kitchen and housewares, electronics and children’s toys for over 20 years. Known in Mexico as the equivalent of the Shopping Channel/QVC and As Seen On TV stores, Inova has provided Mexican shoppers with well-known brand name items at great prices.
 |
| The new Inova.com.mx |
With
the online B2C sales in Latin America set to surpass $62 billion by 2016,
according to eMarketer, Inova made the strategic decision to upgrade its
eCommerce platform with OrderDynamics. The re-launch of Inova.com.mx will support
Inova’s long-term growth and international expansion goals, as well as provide a
flexible call centre and order management solution, and enhanced marketing and
merchandising capabilities that their legacy platform could not provide. In
addition, the new site provides an easy-to-navigate shopping experience that
caters to customer convenience and confidence in the Inova name.
Key features that enhance the Inova.com.mx customer experience include one-click live online chat, and call center support and order capabilities, enabling shoppers to ask questions and solicit any product information they may need to assist in their order.
 |
| Inova's Live Chat feature |
Inova.com.mx also offers the unique Cash on Delivery feature in addition to PayPal and credit card, which allows customers to pay for their order when it is delivered, and helps those who do not have access to a credit card to still make purchases online. For added convenience, Inova.com.mx also provides the option to pay in multiple installments for selected items to help customers alleviate the strain of higher priced items.
 |
| Inova's multiple installments payment option |
We’re very excited to partner with Inova to
help them achieve their aggressive growth goals,” said Michael Benadiba, Chief
Executive Officer at OrderDynamics. “OrderDynamics eCommerce platform is
designed to accelerate growth with robust online merchandising capabilities and
integrated call centre and order management solutions.”
OrderDynamics 2012 Black Friday to Cyber Monday Wrap-Up Report
It comes as no surprise that the weekend including and after the US Thanksgiving Holiday saw a great impact on retail sales. As many retailers including WalMart, Sears and Target opened their brick-and-mortar doors as early as 8pm on Thanksgiving Day, and marketing efforts for the holiday weekend started as early as October, revenue saw a huge jump and traffic was 11% higher over the same 5-day period last year.
Retailers Don't Want to Miss Out on Thanksgiving Day Sales
Online retail traffic for Thanksgiving Day increased 6% over 2011, reaching $633 million in revenue. IBM Smarter Commerce reported a 17.4% revenue growth on Turkey Day – which is not necessarily surprising given that many retail outlets were open, but could indicate that despite the public backlash against encouraging shopping during the major US holiday, many retailers may be apt to do the same next year so as not to miss out.
Black Friday: Driving Significant Mobile Traffic
With 57 million shoppers in the US alone, Black Friday 2012 set a new record of reaching $1.04 billion – surpassing the $1 billion mark for the first time ever. Brick-and-mortar traffic was up only 3.5% and revenue actually dropped, representing an increase in tech-savvy buyers this year that preferred shopping via web and mobile over mad dashes at retail outlets. Internet Retailer reported that mobile traffic exceeded average daily mobile traffic by 155% on Black Friday, contributing significantly to the 36% online revenue growth.
Cyber Monday Sales Set Single Day Record
Cyber Monday maintained its record as the highest spending day ever at $1.98 billion, surpassing the $1.5 billion that was predicted over 2011’s $1.25 billion. Despite the astonishing growth, it was reported that average sale value on Cyber Monday had dropped by nearly 7%; instead consumers opted for a bigger bang for their buck, as average items per order was up 14.1% to 8.34 items per purchase. Nevertheless, retailers like Build.com and Wayfair.com saw revenue growth of 40% and 60%, respectively, the latter reporting 20% conversion rates.
OrderDynamics Merchants Continue to Outpace Industry Growth
For OrderDynamics merchants, the Black Friday through Cyber Monday weekend yielded astounding results. The OrderDynamics Platform processed 162% more orders over the same weekend in 2011, allowing OrderDynamics retailers to generate 178% more revenue. Cyber Monday was the busiest of the 5 days, peaking at 9pm. “It’s amazing what OrderDynamics retailers accomplished this year,” says Michael Benadiba, CEO at OrderDynamics, “the dynamic nature of our SaaS platform allows us to maintain excellent scalability that accommodates big traffic and order spikes. We have sophisticated order management and order processing systems available to all OrderDynamics merchants through our SaaS software that enable high order capture rates, and allowed us to process 154% more transactions over last year.”
Carain Buchalter, Marketing Director at OrderDynamics’ merchant Henry’s Camera, stated that despite slim margins on cameras, additional items and School of Imaging packages helped push some Henry’s Camera stores up 200% over expected revenue. Buchalter also reported that this year’s Black Friday online revenue exceeded last year’s Boxing Day revenue – which is traditionally the busiest Canadian shopping day of the year.
The explosive growth in revenue for OrderDynamics merchants indicates that Black Friday through Cyber Monday weekend success can only continue to trend upward in years to come. Revenue from Canadian OrderDynamics retailers alone surpassed 2011’s total OrderDynamics revenue by 18%. New retailers experiencing their first Black Friday weekend on the OrderDynamics platform contributed to 32% of this year’s revenue, and expectations for next year are positive given the growth of legacy merchants.
Canadian Retailers Aggressively Tackle Black Friday and Cyber Monday
Though Black Friday and Cyber Monday have not traditionally been Canadian phenomena, last year’s Canadian interest sparked proactivity in Canadian retailers.
A pre-Black Friday poll conducted by Ipsos Reid in Canada showed 44% of Canadian consumers intended to take advantage of Black Friday and Cyber Monday promotions this year. Considering that 2011 saw an 8.3% increase in Canadian Black Friday sales, and up to 40% of cross-border shoppers make the trek from Canada, retailers decided to offer their own Black Friday and Cyber Monday deals – including the tax break. Reitman’s in Quebec mall, Place D’Orleans, offered shoppers who made purchases between 12pm and 5pm on Black Friday to have the tax returned to them in a gift card at the mall’s customer service location. Sears Canada also admitted to offering items at extremely low margins, but acknowledged that’s what it takes to keep Canadians shopping in Canada. Cadillac Fairview, manager of a chain of reputable Canadian malls, opened their malls as early as 7 am to accommodate those who wanted to shop.
Communications Manager for Future Shop, Elliot Chun, says that Black Friday sales were held all weekend long at Future Shop, and given the traffic seen, the sale may continue for an entire week. Chun states the importance of considering the fact that many people in the US have the day off from work on Black Friday as a result of the Thanksgiving holiday, and as such, Canadian retailers need to offer promotions that can accommodate the Canadian workforce’s schedule.
Mobile Commerce Has Arrived In A Big Way
Mobile was a major player this year, contributing to 22% of Cyber Monday sales – a 100% growth in mobile purchases over 2011. The iPad appeared to be the mobile weapon of choice during the 5-day period between Thanksgiving through Cyber Monday, encompassing 68% of mobile traffic. The iPhone and Android tied at 15% each. Showrooming proved to play as big a part as expected according to reports prior to the holiday weekend, as 13% of the weekend’s mobile shoppers did so while physically located in a retail store. However, Jay Henderson, Strategy Director of IBM Smarter Commerce, asserts that retailers who performed the best over the holiday weekend were those who utilized multichannel strategies to encourage purchases, which may mean Showrooming could be helping rather than harming.
Despite Slow Growth, Social Commerce Still Matters
With an increasing amount of important being placed on social commerce over the past year, it was interesting to see how it fared during this year’s Holiday weekend. The contribution was meager, with only 0.41% of all online sales coming from social media traffic. It is noteworthy, however, that Facebook stores saw a 240% increase in sales over last year. Facebook and Twitter accounted for 77% of social sales, while Pinterest comprised 15%.
Notable Trends
Some notable trends seen during this weekend that bring with them some lessons in preparation for next year’s holiday shopping weekend are as follows:
Retailers Don't Want to Miss Out on Thanksgiving Day Sales
Online retail traffic for Thanksgiving Day increased 6% over 2011, reaching $633 million in revenue. IBM Smarter Commerce reported a 17.4% revenue growth on Turkey Day – which is not necessarily surprising given that many retail outlets were open, but could indicate that despite the public backlash against encouraging shopping during the major US holiday, many retailers may be apt to do the same next year so as not to miss out.
Black Friday: Driving Significant Mobile Traffic
With 57 million shoppers in the US alone, Black Friday 2012 set a new record of reaching $1.04 billion – surpassing the $1 billion mark for the first time ever. Brick-and-mortar traffic was up only 3.5% and revenue actually dropped, representing an increase in tech-savvy buyers this year that preferred shopping via web and mobile over mad dashes at retail outlets. Internet Retailer reported that mobile traffic exceeded average daily mobile traffic by 155% on Black Friday, contributing significantly to the 36% online revenue growth.
Cyber Monday Sales Set Single Day Record
Cyber Monday maintained its record as the highest spending day ever at $1.98 billion, surpassing the $1.5 billion that was predicted over 2011’s $1.25 billion. Despite the astonishing growth, it was reported that average sale value on Cyber Monday had dropped by nearly 7%; instead consumers opted for a bigger bang for their buck, as average items per order was up 14.1% to 8.34 items per purchase. Nevertheless, retailers like Build.com and Wayfair.com saw revenue growth of 40% and 60%, respectively, the latter reporting 20% conversion rates.
OrderDynamics Merchants Continue to Outpace Industry Growth
For OrderDynamics merchants, the Black Friday through Cyber Monday weekend yielded astounding results. The OrderDynamics Platform processed 162% more orders over the same weekend in 2011, allowing OrderDynamics retailers to generate 178% more revenue. Cyber Monday was the busiest of the 5 days, peaking at 9pm. “It’s amazing what OrderDynamics retailers accomplished this year,” says Michael Benadiba, CEO at OrderDynamics, “the dynamic nature of our SaaS platform allows us to maintain excellent scalability that accommodates big traffic and order spikes. We have sophisticated order management and order processing systems available to all OrderDynamics merchants through our SaaS software that enable high order capture rates, and allowed us to process 154% more transactions over last year.”
Carain Buchalter, Marketing Director at OrderDynamics’ merchant Henry’s Camera, stated that despite slim margins on cameras, additional items and School of Imaging packages helped push some Henry’s Camera stores up 200% over expected revenue. Buchalter also reported that this year’s Black Friday online revenue exceeded last year’s Boxing Day revenue – which is traditionally the busiest Canadian shopping day of the year.
The explosive growth in revenue for OrderDynamics merchants indicates that Black Friday through Cyber Monday weekend success can only continue to trend upward in years to come. Revenue from Canadian OrderDynamics retailers alone surpassed 2011’s total OrderDynamics revenue by 18%. New retailers experiencing their first Black Friday weekend on the OrderDynamics platform contributed to 32% of this year’s revenue, and expectations for next year are positive given the growth of legacy merchants.
Canadian Retailers Aggressively Tackle Black Friday and Cyber Monday
Though Black Friday and Cyber Monday have not traditionally been Canadian phenomena, last year’s Canadian interest sparked proactivity in Canadian retailers.
A pre-Black Friday poll conducted by Ipsos Reid in Canada showed 44% of Canadian consumers intended to take advantage of Black Friday and Cyber Monday promotions this year. Considering that 2011 saw an 8.3% increase in Canadian Black Friday sales, and up to 40% of cross-border shoppers make the trek from Canada, retailers decided to offer their own Black Friday and Cyber Monday deals – including the tax break. Reitman’s in Quebec mall, Place D’Orleans, offered shoppers who made purchases between 12pm and 5pm on Black Friday to have the tax returned to them in a gift card at the mall’s customer service location. Sears Canada also admitted to offering items at extremely low margins, but acknowledged that’s what it takes to keep Canadians shopping in Canada. Cadillac Fairview, manager of a chain of reputable Canadian malls, opened their malls as early as 7 am to accommodate those who wanted to shop.
Communications Manager for Future Shop, Elliot Chun, says that Black Friday sales were held all weekend long at Future Shop, and given the traffic seen, the sale may continue for an entire week. Chun states the importance of considering the fact that many people in the US have the day off from work on Black Friday as a result of the Thanksgiving holiday, and as such, Canadian retailers need to offer promotions that can accommodate the Canadian workforce’s schedule.
Mobile Commerce Has Arrived In A Big Way
Mobile was a major player this year, contributing to 22% of Cyber Monday sales – a 100% growth in mobile purchases over 2011. The iPad appeared to be the mobile weapon of choice during the 5-day period between Thanksgiving through Cyber Monday, encompassing 68% of mobile traffic. The iPhone and Android tied at 15% each. Showrooming proved to play as big a part as expected according to reports prior to the holiday weekend, as 13% of the weekend’s mobile shoppers did so while physically located in a retail store. However, Jay Henderson, Strategy Director of IBM Smarter Commerce, asserts that retailers who performed the best over the holiday weekend were those who utilized multichannel strategies to encourage purchases, which may mean Showrooming could be helping rather than harming.
Despite Slow Growth, Social Commerce Still Matters
With an increasing amount of important being placed on social commerce over the past year, it was interesting to see how it fared during this year’s Holiday weekend. The contribution was meager, with only 0.41% of all online sales coming from social media traffic. It is noteworthy, however, that Facebook stores saw a 240% increase in sales over last year. Facebook and Twitter accounted for 77% of social sales, while Pinterest comprised 15%.
Notable Trends
Some notable trends seen during this weekend that bring with them some lessons in preparation for next year’s holiday shopping weekend are as follows:
- Peak order times on Black Friday were between 10:30am – 11:45am, and 11:25am on Cyber Monday. This indicates a lot of desk-shopping while customers have settled into their work day and are checking emails, and may be the ideal time to distribute email marketing campaigns that will stimulate purchase.
- The distribution of holiday-themed eMail marketing campaigns began in late October. Many retailers sending these out offered increasingly steep discounts over time. This, coupled with the fact that average order values were down on Cyber Monday despite generating more transactions, could indicate that consumers are being primed to wait for the best deal. Retailers may need to be aware not only of how they will compete with competitor prices, but also how they will compete with their own past pricing to continue to attract the deal-seeking consumer.
- With 13% of mobile purchases made while in-store, Showrooming is not going away. Retailers need to be aware of this should consider creating multi-channel strategies to work with Showrooming, rather than against it.
- Given such substantial growth during this holiday weekend, it will be interesting to see how the remainder of Q4 fares. Are consumers going to continue to shop? Or did they get everything they needed this past weekend? How can retailers maintain momentum throughout Q4?
- How much of their resources are retailers willing to allocate to this 5-day weekend, and what will they do for the rest of Q4 if their results fall short? As Q4 is the most critical quarter of the year for many retailers, are they comfortable with the notion that a large and growing portion of their sales comes from just a 5-day period?
- Peak order time on Thanksgiving day was 8:30pm, with traffic earlier in the day coming from smartphones, and evening traffic primarily from iPads.
