Online shopping has brought with the idea a whole brand new approach to the weekend sale.
Online furniture retailer Wayfair followed Amazon’s footsteps last week with its inaugural one-day sales event called Way Day during which items were marked down by an extra 20% to 30%. which random Wednesday, CEO Niraj Shah told investors, was its “biggest revenue day in our history, as well as also we expect which the event will grow further for us in future years.”
Wayfair declined to provide details to BuzzFeed News. Edison Trends, a company which analyzes e-commerce trends, estimates which while customers spent on average about the same on Way Day as they did on average the previous month — an average of $276 on Way Day compared to $275 in March — its average number of unique buyers increased an estimated 400%.
Way Day illustrates a burgeoning trend across e-commerce platforms to abandon established sales calendars used by brick-as well as also-mortar stores which center around weekend holidays, when people are more likely to be out shopping. Without the reliance on foot traffic, companies like Wayfair, Amazon, as well as also eBay are experimenting with their own branded sales days as the importance of long weekend shopping events wane.
However, the boost during these promotional events doesn’t always add up to a long-term increase in revenue as well as also sales. “the idea’s much more about marketing,” said Neil Saunders, an analyst at GlobalData Retail.
Amazon as well as also Overstock have been running their own branded sales days with large success. Amazon’s Prime Day in July 2017 resulted inside the company’s biggest-ever sales day until Cyber Monday topped the idea just a few months later.
Prime Day 2017 grew by more than 60% compared to the year before as well as also more brand new members joined Prime on July 11 than on any single day in Amazon history, according to the company. Purchases also grew by 50% compared to the previous year.
eBay’s Green Monday generated an estimated $1.6 billion in sales in 2016, according to Statista. “Whether the idea’s shoppers logging on after the weekend, waiting for great last-minute deals, or simply procrastinating, Green Monday continues to be a big online shopping day as well as also ranked as eBay’s fourth highest sales day in 2016 as well as also the third highest in 2015,” the company told BuzzFeed News.
For about nine years, Overstock has held an anniversary sale in October — called Overstocktober — which CEO Patrick Byrne once described as “sort of an Overstock Black Friday.” This specific year the idea plans to mark down products at an even deeper discount along with various other promotions for its loyalty program members, the company told BuzzFeed News.
Yet despite its long track record, the last Overstocktober didn’t leave much of a mark during a challenging time for the company. Even that has a boost in marketing spend, revenue still fell by 13%, as well as also the company reported a loss during the quarter which included both Overstocktober as well as also the holiday season.
As for Way Day, the event follows a roughly $107 million net loss for Wayfair inside the first quarter, nearly twice the loss for the same period a year ago.
GlobalData Retail’s Saunders told BuzzFeed News which, unlike Way Day, Amazon’s Prime Day contributes to the company’s profitability because its part of the Prime ecosystem as well as also drives brand new subscriptions.
“The thing with furniture is usually people don’t buy the idea regularly,” he said. “The repeat business is usually reasonable however much more infrequent. Some of the dynamics which are attractive for Amazon are not there for Wayfair.”
At Etsy, under brand new CEO Josh Silverman, the company launched a discount tool for sellers to opt in to sales events such as Labor Day as well as also Cyber Week. During a promotional week called “World of Etsy Sales Event” at the end of March, sellers discounted their items by 20% to 50%.
The company declined to provide comment on the sales as well as also revenue by the planet of Etsy, however Silverman told investors on a call in February which “pop-up” sales will continue to be a part of its sales growth strategy.
“What we are not is usually a discounter which’s always inside the business of discount,” said Silverman. “However, many great retailers want occasional sales as well as also promotions. as well as also what I like about which for Etsy is usually the idea’s a reason for buyers to think about us again as well as also discover which we’re relevant more often throughout the year.”