How Is Technology Helping Businesses In Driving Black Friday Success

Introduction

The holiday season is approaching, and the countdown for the much-awaited Black Friday Sale 2024 has begun. Known as one of the biggest shopping events of the year, many shoppers begin planning their purchases months in advance to make the most of the discounts.

Initially, a one-day event, Black Friday has evolved into a month-long shopping phenomenon. Companies now launch their promotions as early as October to build up the anticipation and attract new customers for November deals. This extended sales period has majorly increased consumer spending.

During the 2024 Black Friday Sale, electronics, clothing, and accessories are expected to remain the most popular categories. Moreover, the predictions say that consumers will be spending approximately $278.645 billion, globally over the weekend. This shift reflects the growing importance of Black Friday sales as a key driver for both holiday shopping and business profits.

Key Trends in Consumer Behavior for 2024 Black Friday Sale

The consumer pattern is as dynamic as it gets, it is constantly evolving and keeps on changing every year. This year Black Friday weekend is predicted to surpass all the sales records of the previous years.

According to Forbes, around 24% of the buyers are intending to spend more than they spent in 2023. While 52.6% of them intend to shop in the pre-Black Friday sale as well.

This year, shopping habits are expected to change, with 58.4% of customers predicted to opt for a mix of in-store and online shopping, while 34.6% are anticipated to prefer exclusively for online purchases.

What Challenges Businesses Face in Black Friday Sale

When a business makes a plan for the annual Black Friday Sale, it is important for them to understand the challenges business owners face while selling their products online and in-stores.

These challenges can range from managing catalog and inventory to handling payment issues and website slowdown. So here are some of the major issues that the businesses may face during the Black Friday Sale:

1. Issues in Maintaining Inventory

Maintaining inventory and managing supply chains can be a significant challenge, especially during peak shopping seasons like Black Friday sales. Unpredictable consumer behavior, delays in shipping, and raw material shortages often lead to stockouts or overstocking, resulting in an imbalance in inventory levels.

Businesses that rely on just-in-time inventory systems are particularly vulnerable, as even the smallest delays can disrupt the entire supply chain. Adapting to these challenges requires improved forecasting, more flexible supply chain models, and a proactive approach to risk management.

2. Challenges with the Logistics

It becomes really difficult for the businesses to maintain their logistics as the transportation and the warehousing industries operate to their fullest. With more people preferring to shop online, there is a lot of strain on transportation and fleet management. As the number of orders rises, the e-commerce platforms must be well-equipped to process a high volume of orders simultaneously.

All the goods carrier services including air, ocean or road, all of them experience congestion due to high demand. Without a well-established network of carriers and logistics partners, many businesses risk failing to deliver their orders on time.

3. Impact of Price Rise

Black Friday deals kick off the shopping season with great offers, but this year, inflation is weighing consumers down. With inflation beating all the records, the prices of necessities like groceries, rent, gasoline, and other household items have also touched the roof.

A lot of the consumers are demotivated by the rising prices as they are hardly able to make ends meet. Even after huge discounts on all the products a lot of these products are out of their budgets, making them change their priorities and options.

4. Technical Issues

Technical issues such as website slowdowns and payment errors are frequent during Black Friday sales due to high traffic. As per Demandsage, Black Friday shopping alone attracted 9.8 million online customers in 2023 that shows the strain on digital platforms. This year the number is predicted to grow by 9.9% and reach 10.8 billion.

According to Baymard, there are 22% of the customers abandon the cart due to long and complicated checkout process and 17% because of the website crashes, further emphasize the need of website optimization during peak periods. Implementing solutions like CDNs, caching, and mobile-friendly designs can help prevent these issues and ensure a seamless customer experience.

How Can Businesses Prepare for the Sale Season Using Technology

Black Friday presents an excellent opportunity for businesses to drive sales and enhance customer satisfaction. However, achieving success requires careful and strategic planning. Here are the few ways businesses can effectively prepare for the holiday season sales with the help of technology.

1. AI For Customer Support

AI is one of the most effective technologies for businesses to utilize during the holiday season sales. By integrating AI, companies can easily engage with multiple customers through messages and address their grievances without burdening customer support team.

During peak season, businesses can use AI to manage basic queries related to FAQs, payment issues and order status updates. This allows human teams to focus on more complex customer queries. Not only does this lessen the burden on the support teams but also ensures higher service during this busy period.

2. Block Chain in Supply Chain Challenges

Blockchain technology plays a key role in maintaining smooth supply chain operations during the Black Friday sales season. By providing a transparent and secure platform, it helps businesses to track inventory and shipments, ensuring timely delivery to warehouses or customers.

Moreover, blockchain helps in preventing fraud by verifying the authenticity of goods and securing payment processes. With its efficiency and accuracy, blockchain helps businesses in meeting high demand, managing inventory, and provides a seamless shopping experience during this busy period.

3. Cloud Computing to Prevent Website Crashing

Cloud computing is a game-changer in preventing website crashes, especially during high-traffic events like Black Friday sales. By using cloud services, businesses can scale their website’s resources dynamically to handle sudden traffic surges.

Rather than relying on fixed server capacities, the cloud offers on-demand resource allocation, ensuring that websites remain fast and responsive even during peak activity. With powerful backup systems and real-time monitoring, cloud computing ensures a smooth online shopping experience, minimizing downtime and keeping customers satisfied during the peak sales.

Conclusion

The upcoming Black Friday sale highlights the importance of how businesses can strategically navigate through technological and logistical challenges.

Technologies like blockchain can enhance supply chain transparency while cloud computing can help in ensuring scalable online operations to accommodate high traffic. AI-driven customer support systems can ensure higher service by addressing routine inquiries.

Addressing payment concerns, like transaction declines or limited payment options, is critical for a seamless shopping experience. With proper planning and active measures, businesses can transform these challenges into pathways for impressive sales and heightened customer satisfaction.