State of Black Friday 2023

“Cyber sales are clearly here to stay with more strategic shoppers taking advantage of the extended cyber sales period and stocking up ahead of Christmas,” says Australia Post spokesman, Gary Starr.

Black Friday and Cyber Monday combine to be one of the world’s biggest shopping events. With sales beginning in early November and ending in early December, Black Friday and Cyber Monday are a lucrative opportunity for eCommerce businesses to target new and repeat customers with deals, deals and more deals. Marketing teams must be agile to rise above competitors and reach new heights to exceed previous years results.

Today’s blog will discuss the state of Black Friday 2023. What it is, how Australia has fared and the importance of optimising websites to allow customers to quickly and easily purchase products.

Setting the Black Friday Stage

Participating in Black Friday is crucial for eCommerce businesses.

This year, 5.2 million customers shopped during these sales, and many waited and saved to afford products.

“Savvy shoppers want to get their holiday shopping done before December, and retailers across Australia have taken notice,” advises Director of National Retail Association, Rob Godwin.

“Consumers are waiting for good deals to appear before they pull the trigger on purchases,” suggests Deloitte Access Economics partner David Rumbens.

Black Friday serves as a stimulus for heightened consumer engagement. The widespread anticipation surrounding the event create the perfect environment for businesses to showcase their products and services to willing customers. By strategically participating, eCommerce stores not only tap into the seasonal shopping enthusiasm but also position themselves in the minds of consumers who are actively seeking bargains and deals.

Beyond the immediate sales, the potential for increased revenue extends to the long term. Successfully participating in Black Friday builds brand awareness, attracts new customers, and establishes a strong foundation for customer relationships.

Customer behaviour during Black Friday 2023

Shopify merchants set a Black Friday record with a combined $6.1 billion Australian dollars in sales, a 22% increase in sales year over year. When combining Black Friday with Cyber Monday sales, this increased to 13.8 billion Australian dollars, a total of 24% increase year over year.

“Another epic, record-breaking Black Friday in the books for Shopify merchants,” said Harley Finkelstein, Shopify President.

The average cart size for all Shopify merchants was $160.06 AUD.

Australia Post found similar data, with over 5.2 million Australian households making online purchases, an increase of nearly half a million from the previous year.

The most popular product categories worldwide included:

• Clothing
• Personal care
• Jewellery
• Health & beauty, and
• Home & garden

The most popular product categories in Australia included clothing, footwear and sporting & outdoor gear. Jumping over to Europe, popular product categories were electronics, clothing and homewares.

Select Megantic clients from a variety of industries have volunteered their Black Friday 2023 data to be shared. The client’s will remain anonymous, however they span from homewares, edible products, clothing and accessories, and automotives. Data reviewed 90 days including Black Friday/Cyber Monday sales and the 90 days prior.

Clients who participated in Black Friday SEO strategies had 65% more sessions to their website, with a 3473% higher conversion rate and 2773% higher revenue.

Let’s deep dive into the data for a fashion brand given that this industry was one of the most purchased worldwide and in Australia. The brand had a 26.5% increase in website sessions for the period of September to November compared to June to August. In the same period, their conversions increased by 45.7% and total revenue increased by 43.6%.

Switching gears towards an outdoor hobby brand, their focus on a Black Friday and Cyber Monday strategy rewarded them with a 18.6% increase in website sessions and a massive 63.4% increase in conversions, totalling to a 46.8% increase in revenue for the same period as above.

Finally, let’s review an automotive client. They saw a 28.5% growth in sessions during the Black Friday 2023 period and a 36.4% increase in total conversions. This led to a 33% increase in revenue. It’s safe to say that prioritising Black Friday and Cyber Monday was the right choice for them!

Online shopping is rising

Online shopping has substantially surged in recent years, reflecting a shift in consumer behaviour. As of the latest data, the online share of retail spending has reached 18.1%, amounting to a staggering $63.8 billion— a 1.7% increase year-on-year. Notably, 82% of Australian households engaged in online purchases in 2022, an 1.6% uptick from the previous year. It’s not just big cities; even in outer rural areas (6.4% increase) and remote (5.7% increase), more people are getting into online shopping.

The changing landscape of commerce versus eCommerce is mirrored in the varied preferences of consumers across product categories. Home and garden sales constitute almost 30% of all online transactions, despite a 3.5% year on year decrease. Meanwhile, the food and liquor sector surged by 11.4%, making up 20.6% of online sales, and variety stores saw an 8.6% increase, representing 18.1% of the total.

For specific industries, the digital landscape has reshaped sales dynamics. Fashion companies, in particular have unprecedented progress with a remarkable 32% of their sales completed online, totalling to $34.7 billion. Similarly, the home and garden sector recorded 26% of sales online, while health and beauty observed a 12% online sales share.

Australian consumers are changing how they shop, and businesses need to adapt to this digital trend to stay competitive.

SEO as a Revenue Booster

SEO plays a crucial role in maximising revenue during Black Friday and Cyber Monday. By creating successful landing pages that align with customer needs and searching behaviours, your website can rank above competitors. Updating URLs and category pages to form a strong and logical website hierarchy has increased website discoverability through search, resulting in increased sales and revenue, our data has proven.

“Competition is fierce for the limited discretionary spending available, and retailers appear to have pulled no stops during Black Friday,” reports David Rumbens.

Beginning with a meticulous research phase allows SEO experts to understand the full extent of target customers and their shopping habits. This comes in handy for all forms of marketing, including Black Friday sales. Only after this, are we able to technically restructure and reconfigure the website structure. New pages will be created to cater to the broad online market and will expand entry points to attract new ideal customers. 

Only by completing such a strong investigation into an eCommerce website can a successful strategy be created.

In the spirit of Black Friday, Megantic are willing to offer a free website review and consultation. Simply contact us today and let our team know that you would like to take advantage of this offer.

Black Friday SEO can also include optimising metadata to include Black Friday-related keywords. For example, these can include “[product category] Black Friday sales”, “[product category] Cyber Monday sales”, “[product category] Black Friday deals”, and so on. We also suggest creating a Black Friday FAQ page to answer questions that customers ask year on year.

Takeaways

The data from Black Friday 2023 paints a compelling picture.

With 5.2 million shoppers participating and Shopify merchants recording a 22% increase in sales YoY, the impact is clear. Businesses must adapt.

Clients employing Black Friday SEO strategies saw remarkable gains— 65% more sessions, a 3473% higher conversion rate, and a 2773% boost in revenue. Optimising for Black Friday is not just about the immediate sales, it’s a strategic move that builds brand awareness, attracts new customers, and sets the stage for long-term success.

But Black Friday isn’t the end. Klaviyo research shows that 25% of consumers are still holiday shopping post-Black Friday. Keep sales and marketing fresh until January when things start to slow down.