6 Tips for Online
Holiday Success
BY ARIELLE FEGER
A
s the coronavirus pandemic hit, "the
country shut down, and everyone went
shopping," said Tony Cox, president of
5th Food Group. In fact, from March 16 to May 10,
online traffic grew 110 percent, conversion rates
were up 40 percent, and revenue grew 175 percent,
according to the company's research. Since
Mother's Day, conversion rates have normalized,
but traffic and revenue are still seeing triple-digit
growth, said Cox during a webinar, Selling Direct
to Consumers: Tips for Success in 2020, part of
SFA's Ask the Experts series.
During the boom, companies that had
previously only dabbled in e-commerce began to
see the benefits of a strong direct-to-consumer
presence and entire segments of the population
were purchasing specialty food online for the first
time, expanding the universe of prospects virtually
overnight. "E-commerce literally saved some
companies from going under," said Cox.
This boost in online purchasing bodes well
for makers entering the busiest part of the year:
the holiday season. If companies can keep their
margins down and e-commerce experiences
engaging, it could be a fruitful season for the
specialty food industry.
Holiday Season Outlook
Cox predicted that more active customers will
translate to higher sales for all companies this
holiday season. "The percentage in change of your
active customers runs in linear relationship to sales.
If you have 15 percent more customers, within
reason, you can expect to see a similar increase in
revenue change," said Cox.
Across the board, merchants are discounting
less but still seeing robust sales; and this will most
likely continue, he said. Many companies are
President of 5th Food Group Tony Cox
shared ways that makers can maximize
success during the winter holiday season.
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