BFCM Debrief: Reviewing and Optimising eComm Performance for 2025

Introduction

Good morning everyone, and thank you so much for joining today's debrief on the recent BFCM (Black Friday Cyber Monday) period. Before we dive into the details, it's important to acknowledge the traditional custodians of this land, the Gatal people of the Oration, and pay our respects to Elders past and present.

My name is Hugh Griffin, and I'm the Head of Enterprise at Airwallex. I'm thrilled to be joined by the remarkable Paul Wy, a leading e-commerce executive and advisor, as well as the bestselling author of Shopify for Dummies. Paul also chairs the advisory board of the National Online Retail Association (NORA) and advises several top online retailers in Australia. Welcome, Paul!

It's great to catch up again. We recently met at NORA's event, where you presented an award. It was a pleasure to share a dynamic conversation with you that evening. Today, I'm excited to discuss e-commerce strategies, looking specifically at the metrics and trends that have emerged following BFCM.

Recent Findings from Airwallex Digital Economy Index

To kick things off, I'd like to highlight some findings from our recent Airwallex Digital Economy Index. After a challenging year, e-commerce merchants experienced an increase in spending during the last quarter, heralding an optimistic end to the year.

Global shoppers have shown great enthusiasm for Australian brands, leading to significant international spending on homegrown products. Notably, merchants in regions like Western Australia, Kazakhstan, and the ACT reported some of the highest year-on-year increases in spending.

During the peak sales period, our payment processing customers observed a 46% increase in payment volume from December 1 to December 2 compared to last year—an 11% increase on Black Friday and a fantastic 16% on Cyber Monday.

With December nearing its end and Black Friday behind us, I’m keen to delve into important performance metrics that are crucial for assessing current e-commerce strategies.

Key Performance Metrics

As we evaluate this current month, it’s crucial to consider the following performance metrics:

Revenue vs. Profit: While many brands may experience high revenue months during holiday sales, it's vital to keep an eye on profitability. Understanding your Cost of Goods Sold (COGS) during this period is essential, especially if your sales rely heavily on discounts.
Conversion Rate: This metric is critical in gauging how effectively your site turns visitors into customers.
Average Order Value (AOV): AOV can provide insights into purchasing behavior and customer engagement during peak sales times.
Cart Abandonment Rate: High abandonment rates might indicate issues with the user experience on your site that need addressing.
Baseline Sales: Understanding how quickly your sales return to normal post-cyber sales can indicate how dependent your brand is on discounting.

Brands need to be proactive about determining their pricing strategy in alignment with their financial goals, especially when considering the dip in sales that often occurs post-sale periods.

Mistakes to Avoid Post-BFCM

As merchants analyze their performance data, one common mistake is impulsively choosing to run additional sales or splurging on more marketing without thoroughly evaluating their past data. In the U.S., we’ve seen brands skip the immediate post-BFCM period to preserve brand equity, while others give in and offer discounts.

Those who follow a consistent strategy should understand how to navigate inventory and promotions, and make informed decisions regarding their positioning in the market.

Strategies for 2025

Looking towards 2025, we’ve observed brands leveraging Airwallex's infrastructure to explore new growth corridors. Notable trends include:

Utilizing local payment methods, such as Buy Now Pay Later (BNPL), to enhance AOV and provide consumer flexibility.
Exploring new territories by localizing payment options.

For example, Australian brands are effectively tapping into international markets, with significant increases reported by organizations like Baby Boo Fashion, which receives 86% of its revenue from the U.S. market.

Future Trends in E-commerce

The future of shopping is not just about static online purchases; it's evolving with trends like live streaming and interactive shopping experiences largely seen in regions like Asia. Live shopping could soon become an integral part of e-commerce strategies in Australia, providing a new direction for merchants seeking to stand out.

Financial Literacy in E-commerce

Lastly, as both consumers and brands grow more educated about financial implications, it’s essential for e-commerce businesses to prioritize understanding their financial metrics. Profitability, as opposed to vanity metrics like revenue, should always be a brand’s primary focus.

Keyword

BFCM
e-commerce
performance metrics
revenue vs. profit
inventory management
local payment methods
financial literacy
live shopping
brand strategy

FAQ

What are the most important metrics to track post-BFCM?
- Key metrics include revenue vs. profit, conversion rate, average order value, cart abandonment rate, and baseline sales.
What mistakes should brands avoid after the BFCM sales?
- Brands should avoid impulsive additional sales and unnecessary marketing spend. Instead, data analysis should guide their decisions.
How can small businesses access the technology typically available to larger enterprises?
- Small businesses can leverage platforms like Shopify and Airwallex for cost-effective, plug-and-play access to advanced e-commerce technologies.
What is one significant trend expected in Australian e-commerce for 2025?
- Expect an increase in live shopping and interactive selling experiences as brands adapt successful strategies seen in Asia.
How can brands enhance their customer conversion rates?
- Brands must establish a clear point of difference and effectively communicate their unique value proposition to consumers.