Black Friday 2024: A guide for South African online retailers

Global retail, whether bricks-and-mortar or online, is in a mercurial space right now with many brands in South Africa reporting a brutal July and August. However, while the past few months have been challenging, the promise of a hyper-focused sales opportunity bodes well for those who are innovation focused and well prepared. According to Bankserv Africa, Black Friday sales in South Africa from 2023 totalled R4.5bn, and while the value of transactions at R3.1bn was 21% down on the previous year, there is no doubt that Black Friday and its tech-focused counterpart Cyber Monday may well be a boost to bolster both coffers and morale.

TDMC’s development director Duncan Colville and media director Caleb Shepard are well-versed in the Black Friday landscape and have years of experience in guiding the digital media agency’s many e-commerce clients as to best practises.They share some of their tried-and-tested advice as well as new insights for guiding e-commerce operators to achieving their best Black Friday yet.

Learn from your customers

A change in customer profiles is afoot and can be seen with the influence that younger, more conscious consumers are having on retail. Temu and Shein are having a significant effect on retailers, but there is also a growing silo of consumers who are quality focused. “This is an opportunity to amplify your messaging around this element of your offering in your organic and paid content, both generally and especially in the run-up to the Black Friday weekend,” advises Shepard.

On the flipside, customers are more conscious than ever about cost, are avid price watchers and comparers, and have definite expectations around discounting. “We advise clients to approach their discounting carefully: lighter discounts of 10% and 20% tend to have lower uptake, but bundle deals are an increasingly popular mechanism,” says Colville. He says aggressive discounting of up to 50% especially on in-demand items is a sure-fire way to get traffic to your site. “What’s essential is that you have adequate stock to fulfil high volume sales and that you can fulfil sales and deliveries efficiently to impress and maintain that customer,” he says. “We encourage a 24-hour dispatch system with 3-to-5-day delivery windows in main cities.”

First party data first

There has never been a more relevant time for harnessing first party data to drive sales and build robust customer communities. TDMC are leaders and proponents of this essential component of e-commerce. By analysing browsing and online purchasing behaviours and by tracking individual journeys, data can be used to create customer-centric journeys that guide towards concluding sales. “We are using our own deep knowledge and expertise and combining it with AI to implement sophisticated, personalised email flows and strategies. Events like Black Friday are also vital for gathering valuable data which will be of great use down the line,” says Colville.

Innovation and agility

As one of a handful of verified and top tier Shopify Experts, Meta Business Partners and Google Partners in sub-Saharan Africa, TDMC is at the forefront of e-commerce innovation. “Black Friday is a chance for retailers to lean into what AI has to offer, from creating personalised product recommendations to maximising SEO optimisation and harnessing effective lead generation channels,” says Colville. He suggests considering implementing AI-powered chatbots for immediate responses, but not foregoing human backup for more complex queries.

Colville stresses the importance of precise planning. “Plan for your customer communications around delivery and return norms and FAQs, make sure you have enough stock, and that your picking and packing processes are seamless. If you are working with high volumes, consider optimising delivery processes, using outsourced e-commerce warehousing and fulfilment services like Parcel Ninja or Barco.”

Colville adds that payment gateway processes should be checked for bugs and retailers should consider meeting customers where they are at with Buy Now Pay Later options. Likewise, having an effective cart abandonment and customer exit point strategy with pop-ups or sign-up options is a useful addition.

With weeks to go before Black Friday deals start to pepper media and entice customers, it is essential for all retailers to sharpen their processes and offerings. Shepard explains that South Africa is rather unique in its positioning, with bricks and mortar vs online silos and says, “South African retail is still very focused in store vs the global benchmark. A recent presentation by Peach Payments (one of our preferred payment partners) referenced the global retail split as 28% online vs 72% offline, while locally the split is reported by www.onlineretailreport as 7% vs 93% instore, this shows that while there is still much value in bricks and mortar retail, there is excellent opportunity for online retail growth.”

While the days of Black Friday and Cyber Monday stampedes may not be what they were across the globe, these retail periods remain key. “Some brands use the period as a chance to amplify their ‘no-sales’ approach to business at this time, thus standing out from the crowd by not participating,” says Shepard. Whichever strategy you choose, these fundamentals of e-commerce preparation and action are crucial for maintaining a foothold amongst your competitors.