Christmas Sales 2021 in Online Shops: Hidden Potentials

christmas sales online shop
Author: Haydar Yuece // 8min

With the Christmas season, the highest revenue period of the year is just around the corner. Whether it’s the classic Christmas shopping or the Black Friday bargain: for online shops, this phase of increased demand means the biggest rush of customers of the year. The annual sales records for online Christmas business and the increasing Christmas budget of Germans give online merchants enough reason for optimism in 2021 as well.

Even though most online shops are well prepared for the 2021 Christmas sales, some are unfortunately overlooking fundamental opportunities. Because with a minimum of extra effort, a maximum of sustainable growth can be achieved. If you turn the right screws, you can make the high-revenue phase around Christmas into a growth engine that will bring you increased revenue not only in certain phases, but throughout the year.

Christmas sales 2021: opportunities and risks

The Christmas shopping season is the high turnover time of the year – both for stationary shops and for e-commerce. More than a quarter of the annual revenue is generated in e-commerce during this time. This includes promotional days such as Black Friday and Cyber Monday. For online merchants, the business around Christmas results in a correspondingly high sales potential. However, there are also risks that you should keep in mind.

Christmas Shopping E-Commerce

Significant increase in traffic during the Christmas season

Unsurprisingly, our internal data (+450 anonymised shop data) shows that traffic in Q4 increases by almost 30% compared to Q3. The increasing traffic already starts in October and reaches its peak in November. In December, the traffic starts to decrease again. However, this does not apply to the pre-Christmas period in the first weeks of December, when many consumers do their last online Christmas shopping. Traffic only starts to drop with the onset of the holidays.

christmas sales traffic

The question for online merchants is: How do I use the increased traffic of the Christmas sales optimally?

Rising consumer Christmas budget

The Christmas budget of consumers in Germany increased by 10% in 2020 compared to the previous year: While Germans spent an average of €400 on Christmas in 2019, the budget rose to €440 in 2020. The majority of respondents justified the increased Christmas budget by wanting to give themselves a treat.

This means a high sales potential for retailers and especially online merchants. It is to be expected that the significant decline in short-time work will give the Christmas business a further boost in 2021.

christmas budget online

The question for online merchants is: How do I generate the largest possible share of the consumer’s Christmas budget?

Increased advertising pressure due to competition

However, the increased demand and the rising Christmas budget are only one side of the coin. On the other side, the advertising pressure from the competition is increasing. The Christmas shopping season is highly competitive. After all, money is easy to spend on Christmas presents. As search volume and cost per click (CPC) on the social media platforms increase and the competition also wants to attract attention, campaign prices also rise considerably. After all, this is the busiest time of the year in terms of sales.

If we compare the advertising spending of the individual quarters, for example, we come up with an unsurprising result. For mobile advertising alone, there was an advertising spend of around 316 million euros in Germany in the fourth quarter of 2018. For comparison: In the first quarter, it was just under 174 million euros only for the mobile part of the advertising.

revenue christmas

The question for online merchants is: How do I increase the return on investment (ROI) of my Christmas campaign?

Discover potential and seize opportunities: 3 tips

As you can see: The Christmas season offers great potential – but also certain risks due to the increasing advertising pressure.

With uptain, you can exploit the full potential of the increase in traffic and the rising Christmas budget for your online shop. At the same time, you can make your Christmas campaign more efficient by increasing the Return on Investment with the help of the all-in-one conversion tool.

And this is how it works…

1. Increase your sales with Abandoned Cart Emails

Due to the increasing demand and well thought-out Christmas campaigns, traffic is increasing significantly. However, this does not mean that sales will follow suit. You can be sure that the majority of visitors will search and compare in numerous other online shops before buying. Since Christmas shopping is also usually perceived as stressful, there are also far more annoyed shopping cart abandoners. Therefore, only very few visitors will buy from your online shop. So it’s not enough to just drive a lot of traffic to your shop.

christmas business online shop

Abandoned Cart Emails are sent after a shopping cart abandonment has already happened. The software recognises the customer’s characteristics and the reason for abandonment, so the content of the email is tailored to the needs of the shopping cart abandoner. The tone (cordial, factual, hip) and the incentive (e.g. service offer, discount code, reminder email) are therefore perfectly tailored to the individual recipient. In this way, you secure sales that you almost lost to the competition.

Get more detailed knowledge about Abandoned Cart Emails here: Abandoned Cart Emails: Examples & Templates.

2. Increase Return on Investment with Exit-Intent Popups

The increased advertising pressure during the Christmas season inevitably leads to more advertising spending. Whether Google, Facebook or Instagram: As an online merchant, you cannot afford to do without advertising at times of increased demand. So turn the screws that are left to you and make your Christmas campaigns more efficient!

Exit-Intent Popups appear shortly before the shopping cart is abandoned. Here, too, the software recognises the customer’s character and the reason for abandonment. With individual content based on this data, you can convince your visitors to complete the purchase shortly before they abandon. In this way, you make optimal use of the expensively generated traffic. With every visitor convinced by an Exit-Intent Popup, the Return on Investment increases, so that you minimise the investment risks.

3. Get year-round sales with Newsletter Popups

Hand on heart: Like most online merchants, in the last quarter of the year you probably focus on the immediate sales you generate in the Christmas sales. It’s no wonder, considering that Christmas sales account for a quarter of your annual turnover. But what do you intend to do with the visitors who are not yet ready to buy? For a variety of reasons, they visit your online shop without ever making a purchase. Unless, as an online merchant, you have a long-term strategy and gain their trust so that they possibly return after the Christmas season.

In this case, you use Newsletter Popups to grow your email list with visitors who are interested but not ready to buy. The Christmas season is particularly suitable for this because of the increased traffic. With well thought-out newsletter marketing, you then convert your new newsletter subscribers into paying customers in the long term. In this way, you also use a segment from which no revenue can be expected in the short term. In the long term, you will be rewarded with sales outside the Christmas business.

Profit from Christmas business all year round with uptain

With uptain, in addition to the immediate increase in sales during the Christmas business and the minimisation of risks, you ensure sales spread over the entire year. Abandoned Cart Emails, Exit-Intent Popups and Newsletter Popups are automatically addressed to the appropriate target group, so that you can concentrate on the current Christmas business without interruption. Take advantage of the Christmas sales and start with uptain with just a few clicks!

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