Flash sales have been around forever, but they’ve become the new big trend in e-commerce recently. They can be a great way for your brand to get additional attention, and when done right, can turn in a lot of profits as well. For flash sales to be successful, you have to make sure that they’re planned and advertised properly. But more importantly, you want to make sure that it’s actually a good idea for your particular business. So, how do you know if you should be holding a flash sale or not?
You Need Instant Cashflow
If you’re having cash flow issues, then a flash sale can be a good way to inject some cash into your business. A 2-3-day flash sale can increase your profits fast, and get you funds to finance inventory, new acquisitions, or reinvest in more marketing. You could even run 2-3-hour flash sales if you want. Flash sales are also a good option if you’re trying to liquidate some inventory or make way for a new model of a certain product.
You Need to Build Awareness
Flash sales can be a great way to also gain some awareness recognition for your brand. This is one of the most powerful tools you can use if you want to gain traction on social media. Most people love a deal, and if you find a way to showcase your brand to people in your area and in the right group, then word will spread.
Flash Sales Fit Your Brand Image and Product
You also have to take your brand into consideration before thinking about flash sales. Flash sales are not always the best choice if you’re a luxury retailer, for instance. Holding flash sales could actually end up cheapening your brand, or could raise suspicion on the quality of your products.
You should also try to avoid flash sales on top products. If you’re going to be holding a site-wide flash sale, you need to have a clear purpose for it. For example, a flash sale could be great if you want to recuperate some of the money lost on returns after the holidays. A good way to use flash sales would be to target a product that is popular with your competitors, and temporarily sell it at a lower price while marketing heavily to their client base.
You’re Trying to Keep Your Customers Loyal
Building customer loyalty can be tricky if you’re in a crowded niche. You may have noticed that you have a significant number of sales, but not plenty of return customers. In this case, having a flash sale could be a great way to win them back. And while you’re at it, you could take the occasion to encourage them to sign up to your mailing list so they can stay tuned for future sales and offers.
Flash sales can be the perfect tool to increase awareness and get an instant spike in sales. However, like everything, it will need a proper strategy, and you’ll also need to use them wisely so that they don’t become a habit and lose their appeal.