Black Friday 2017: Top OrderDynamics Customers See 41.9% Growth to Start the Holidays
Friday, December 1, 2017

Black Friday 2017: Top OrderDynamics Customers See 41.9% Growth to Start the Holidays

Black Friday 2017, and Cyber Monday: What Happened

RetailMeNot was quoted in Forbes forecasting that Black Friday 2017 spending would increase by 47%, compared over 2016 results for the same period. Albeit bullish, this is all good for a retail sector that has been hit hard with bad news. The reports this past year exaggerated the demise of the physical store, mall, and industry overall. In fact, we are pleased to announce that the OrderDynamics figures for Black Friday through to Cyber Monday approximate RetailMeNot’s expectations and forecast.

OrderDynamics' ten largest customers saw a 41.9% increase in order volumes between Black Friday and Cyber MondayBetween Black Friday and Cyber Monday, OrderDynamics’ Ten largest customers appreciated a stunning 41.9% increase in order volumes. Plus, solid omni-channel retail fulfillment paid off with 20.9% growth in overall order sales revenue compared to the same period 2016.

There is a  growing realization that omni-channel retailing is a solid option for rushed consumers. These extremely strong Black Friday, and Cyber Monday (BFCM) figures should result in continued positive results, specifically for those retailers that have deployed in-store pickup offerings, for example. In fact, RetailMeNot found that “Some 81% of Consumers Use Up to Six Channels to Shop for the Holidays.” This means omni-channel retailers truly are in pole position to win this season. Also, now that omni-channel is a common and known means of shopping, consumers are not going to go back to their previous expectations. Rather, they are going to expect that all retailers offer them all the flexibilities of shopping how they want to shop.

OrderDynamics’ OMS during BFCM

We found that AOV’s (average order value) dropped just shy of 14.8% for BFCM this season. That was the direct result of the huge increase in order volumes growth (triple this rate). In effect, this resulted in a bonanza for retailers which rolled out an OrderDynamics DOM (distributed order management). A lower AOV is the direct result of more customers using in-store pickup for their purchases. It can get the purchase into the consumer’s hands fast and at their convenience. Best of all it puts the shopper in control – which ultimately increases their satisfaction with the process, and the retailer’s service. Given that pickup orders don’t include a shipping fee, consumers may opt for somewhat lower valued purchases, and more than offset this by ordering more goods, more frequently.

Also, don’t forget that 58.8% of in-store pickups still result in additional purchases. So, despite a small AOV slip, the net effect of more omni-channel shopping among consumers provides a higher overall AOV impact.

 

CIO Guide To Order Management Systems

 

BFCM Busy Hour

Like the 2016 season, 11:00 PM ET was the busiest hour from an orders transaction perspective. During busy hour, OrderDynamics retailers experienced a 61% increase in order volumes, compared to last year’s period. This again stresses the need for robust retail ready systems that can scale on a moment’s notice, to avoid outages.

Second busiest hour was 3:00 PM ET. For the eager consumer 7-9 am are the best hours to shop for deals. Yet the 4:00 – 7:00 pm period also shows an easing of consumers orders.

Order Volume By Time of Day on Black Friday 2017

Exceptional Start

11pm ET was the busiest hour on Black Friday 2017 from an orders transaction perspectiveWhether it is the stock market’s Santa rally pushing the DOW over 24,000; the strong economies firing on all cylinders, or the phenomenal results of this season’s BFCM – retail is roaring into a solid holiday shopping season. Purchases and orders are up by 41.9%. Sales during this BFCM are up over 20.9%. it looks like omni-channel retailing is successfully beating the doom & gloom of the first half 2017.

Wishing all our friends and colleagues in retail a happy and successful season! Well deserved.

 

Author:

Charles Dimov - Director Marketing OrderDynamicsCharles Dimov is Director of Marketing at OrderDynamics. Charles has 21+ years experience in Marketing, Sales and Management across various IT and Technology businesses. Previous roles include Chief of Staff, Director Product Marketing, and Director Sales. Charles has held roles in brand name firms like IBM, Ericsson, HP, ADP, and OrderDynamics.

 

 

Related: 

Innovative Game Plan: How to Implement Your OMS Want to Know More About Distributed Order Management? How to be the ideal retailer this holiday season