Why Black Friday has been the worst invention in history for trade

Why Black Friday has been the worst invention in history for trade

Black Friday is negatively affecting sales in October and possibly also in November. These are the consequences of thinking in the short term.

One of the good things about the app for Amazon sellers is that shows you by default growth statistics (or not) in comparison in the previous month and even the previous year.

Adobe Stock Photo Rights

The last 30 days may always be affected by factors that we do not control. Being still a small seller (10,000 euros / month of billing) can influence many things like the entry of new sellers, Amazon that suddenly offers the same product as you, new consumer trends, etc.

Sales in Spain paralyzed thanks to Black Friday

One of the things that I look at is that there is a month-to-month growth . Not all months are equally powerful so considering that we operate in 5 European markets there may be a drop in billing in a specific way in some country. Also due to tax regulations our account in the United Kingdom has been blocked for 2 months and restart the activity here to reach the previous billing levels is not being fast.

You look for employers and when you have been selling for so many years online you know where the shots go. At least for Spain. But all this is changing radically. And not for good. Yesterday my namesake Carlos put it on Twitter in this way.

August- Spain paralyzed

September- VISA cards burned in August and back to school.

October- Waiting for the BF

November- Waiting for the BF

August and September we have always known that they are not good. But months like October and November are becoming mediocre thanks to the worst invention in the history of trade: Black Friday . The worst thing of all is that I notice it in my own behavior as a consumer and I see it also reflected through comments from people who work on my team.

Black Friday makes businesses enter less

The worst of this evolution is that we are going worse . More and more people will be aware of the opportunity to catch bargains on Black Friday and also Cyber ​​Monday. We all know that especially the large companies have already raised prices to then give discounts "high" on this date and sell at prices very similar we have seen in summer. The popularity among consumers is obvious. The blame is mainly on businesses that continue to think only in the short term not being aware that this is not a sprint, it is a marathon. They do not have the patience to set up a business and become obsessed with sales spikes as generated by a Black Friday.

What nobody anticipated in such a way is the evolution we are seeing now. Everyone waits with the purchase until the happy date arrives. And we could think that in the end it is the same because it will spend the same amount but I tell you not. For 2 reasons.

  1. Less growth for business: money that I can enter today does not have the same value as the one I receive in 2 months. It is lack of liquidity that I can not use to buy more merchandise for these dates.
  2. Less consumption in stores selling product : what I'm seeing in many customers in my store is that they spend money on a recurring basis from the moment the payroll comes in. If you say you spend 100 euros each month and a month "save" for Black Friday does not mean you spend 200 euros. They will be more than 150 euros as much because the money will have already gone away in other themes of leisure such as cinema, restaurant or other things.

In the end, the play has come back. The billing goes down, the benefit goes to minimums and the liquidity is reduced. Clap, clap, clap.

All this is based on my own experience, data of my business and conversations with fellow workers. If there are tests, statistics that say otherwise, I shut up.

This year I will not participate in Black Friday discounts on my e-commerce . I refuse to play a game where everyone loses. In the end also the consumer because he is deceived with alleged discounts that have been achieved thanks to previous increases.

Equal in Quondos for being digital product we will do something but I still have not decided.

What was said. Black Friday for me is the worst invention in history. It is the perfect example that wanting to give the "pitch" in the short term always has long-term negative effects.