Like all eBay sellers, we were looking forward to the Black Friday weekend to sell, sell and…sell some more. To boost our business we used our Markdown Guru tool to create markdown sales that would drive traffic, rank us higher on eBay’s search, get rid of old inventory, and did I mention sell more? So how did we do? In a word, our best sales ever! Read along as we share our results and show how you can create the same success for your store!
A little background – we have had two eBay stores for the past 10 years, each selling thousands of electronic and lab equipment products. Amongst our clients you will find engineers, hardware project managers and other technical people who are involved with all sorts of projects, whether medical or in other fields. That makes it hard for us to boost sales through discounts, as most of our buyers are less interested or affected by sales, but driven to purchase according to their own needs. This was an extra challenge that we faced.
Well, the general upshot of Black Friday this year was quite surprising, as reported by the different e-commerce channels. To begin with, there was an overall increase in online sales this holiday period, including Black Friday, in comparison to Black Friday sales at brick and mortar stores.
However, Black Friday sales still didn’t meet the forecasts, but were far lower then expected. According to “The Verge”, the reason for that was that the holiday shopping period is now starting in October.
As the holiday season is longer, the Black Friday hype was lower, and the sales were scattered around the whole holiday period. Despite this trend, in our store we managed to overcome the challenge and create a huge buzz on Black Friday and boost our sales within those two days of sales.
Let’s have a look at our Part2Go store stats. Currently, we have almost 7,200 listings on hand in the store. For the Black Friday sale (we did the sale on Friday-Saturday) we put about 60% of our store listings (4,369 listings) on sale, with various discounts adjusted to each different listing, running between 10% – 60%.
How did we do? Our Black Friday Marked downs listings made $1878 in only two days!! This is out of a total of $2711 in sales during those two days. That means that nearly 70% of our Black Friday sales were driven by discounts!!
Here are two diagrams, the first is our November weekend sales (only Friday-Saturday to match the BF sale) and the second is our monthly revenue over the last 6 months.
Now let’s see how we figured those numbers.
The Part2Go store monthly average revenue in the past five months was $22,479. Based on this, our daily average sales were $733.
Given those numbers, during the two days of the BF sale our total income of $2,711 was almost double our daily average income! And, it’s 12% of our monthly average revenue.
Out of this $2,711, $1,878 came from the massive sale we did, which is 8.3% of our monthly average revenue. This and other sales efforts during the month we did such as new listings, auctions and emailing, led us to an all time record of more than $31K.
Our November revenue was over 40% more than our average monthly revenue for the prior five months.
How exactly did we do it? Here is how we created seven different discount rates for different groupings of products in just a few minutes to have record sales.
- We divided our store listings into different sales groups in just a few minutes by using CampaignGO’s Markdown Guru. Each group contained different listings sharing mutual parameters, thanks to the Markdown Guru’s smart filters.
- We wanted to put all of our unsold, very old listings, that didn’t have any watchers, on a huge sale, with 60% off.
- We located all of our unsold listing by using the “SOLD” filter, defining “sold less than 1” items.
- Next we added the “DATE LISTED” filter, and defined a date listed of two years back, and located all of our very old listings that have been in inventory for more than two years.
- And last, we added the “WATCHERS” filter and inserted “less than 1” watchers to locate all the listing without watchers.
We repeated this for the other discount levels:
- 55% off for very old listings that were never sold, but this time with watchers (eBay sends the watchers an email each time the item’s price is changed).
- 50% off for very old listings that had sales.
- 45% off for listings that were listed more than one year and had no sales or watchers.
- 40% off for old listings more than one year in our store, but were sold before or had watchers. Same filters, different definitions, a totally different sale! So easy!
- We created two more discount levels of 20% off and 10% off. For the 20% off sale we filtered our new items that have a large quantity in stock and for the 10% off we filtered the very new items that we have plenty from.
That was it. Seven different discounts for seven different groups of items, covering most of our store inventory. It took us less than 30 minutes. Those 30 minutes (or less) brought in $1,878 of revenue! It was definitely worth it.
This result was easily seen through the Markdown Guru Reports feature, which enables you to see a monthly summary of your markdown performances.
We believe that the mix of different discounts made our store look diverse, appealing and drew interest to it, rather than setting a uniform discount on the entire store.
And, most important, we were able to adjust the discounts rates to the specific items according to the items’ “priority”, i.e., older items or dead stock could get a very large discount, and newer or attractive items got a smaller discount. It became possible only thanks to the Markdown Guru advanced filtering options. We couldn’t do it without it, or it would take us forever.
We hope this case study inspires you to create successful sales and reach your full business potential. We are all about your success.
Happy Holidays and great sales!
The CampaignGO Team