Inventory problems are a nightmare for small business and are only made worse during a downturn. But Stewart says when online retailers are preparing their stock for Christmas, they may need to order more than usual to compensate for international demand.
“This is a really important time for people with export markets, especially for the Northern Hemisphere where it is the peak buying season from November until February. You will find online sales often double because people are staying inside due to the cold and are on the computer more.”
Tilley reminds businesses that when stock cannot meet demand, then “you’re going to be losing money fast”.
Kogan says retailers must study the spending patterns of the past year to determine what items will sell, and how much of them should be ordered.
“You have to look for trends and products to be aware of what’s going to sell well, and then stock up on those. It’s paid off for us, with things like digital photo frames and GPS receivers. We studied the trends, stocked up on those items and then pushed them on the website.”
If you have a database of users, now is the perfect time to use it. Stewart says businesses without one should find a way of obtaining email addresses from customers to build up a database for future sales – including Christmas.
“You can do some really wonderful things with email marketing. Have a special of the day, or special of the week approach where you’re getting your name out there. In any case, you should have an email system just to improve your productivity. So when other offers or updates come along, you’ve got a massive list of people who you can email about something happening on the site.”
Nathan Aherne, chief executive of IT support company Reddog, says businesses need to focus more on the technical side of things when it comes to preparing for the Christmas digital rush.
“Make sure your website can handle the load. If you’re going to be getting an influx of traffic, then sign up with a reputable hosting provider so if there is a problem, they’ll fix it. The last thing you want is to spend thousands designing a site and then have the site fall over due to too much traffic, when your competitors are only a click away.”
“Prepare over and above what you expect. Hosting is so cheap, so spend a few extra dollars and make sure you have that extra space just in case, because you really aren’t losing anything by doing so.”
If you’re spending a lot of time updating your site for Christmas, it’s a good idea to see if it actually works. These experts recommend testing the site yourself to see how easy it is to locate information and buy a product.
“Start testing now,” McDonald says. “The Christmas rush is the hardest time to test new marketing or technology. Be ready for the biggest retail event of the year by experimenting in September and October and learning as you go.”
Did you know that Apple’s iTunes Store allows users to purchase and send gift certificates that appear in the recipient’s email inbox? There is no reason you can’t do the same with your own site, and McDonald says it is a sure-fire way to gain sales.
“Plan a gift card program. According to Google search data, gift cards are getting more popular each year and 2009 may be the biggest year yet. Although these are most effective during the last days of the holiday season as shoppers run out of specific ideas for gifts, retailers should begin promoting them online in October as people begin their Christmas research.”
While Christmas may be over after 25 December, these experts say retailers should look ahead. The shopping season doesn’t end after 1 January, and with many people still on holidays there is still a lot of time for retailers to take advantage of New Year sales.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
