With a change in season, there will also be a change in your performance. Seasonality impact is something that many industries face. The E-commerce industry is no different.

While there may be a time when your sales are at a peak but there will also be a time when the sales will drop. It all happens sometimes because of a change in season.

Since this seasonality impact is something that can not be stopped or avoided, we can definitely adapt to some best practices that will help us sail through this time.

What is the best season for E-commerce industries?:

Well, there is no concrete answer for the same. It varies according to the industry. However, during the holidays & festivals, the statistics have it that sales do increase during this time as audience prefer to buy a lot during such periods.

And hence, it is important for the brands to make the most out of this time.

Why is there a seasonality impact?

1. With a rise in CPM: 

Generally, during the festivals & marketplace sales, it is a common trend we face every year with CPM rising at its highest. There is a whole lot of competition during this time. & since Facebook ad auction system selects the best ads to run based on the ads' maximum bids and ad performance, the CPM rises for many brands.

We do have an article that can help us take preventive measures to control the CPM. You can find the article here.

2. Consumer Behavior: 

The performance also takes a hit because of the consumer behavior. We generally see performance for many brands going down during the month of December. From our understanding, we have observed that during the festive season including Ganesh Chaturthi, Dussehra, & Deepawali, etc. the Indian audience by then already spend a lot in shopping & thus, shy away from spending more as the festival season starts to go away. This shift in consumer behavior affects the performance in general.

How to tackle the Seasonality Impact? 

1. Plan the year in advance:

-- During holidays & festivals, sales pick by tremendously. And hence, a planned schedule will definitely help you make the most during this time. You may also consider scaling up your campaigns during this time to make the most during this season.

E.g.: For Apparel brands, running ‘holiday marketing’ during New Year, Holi, Eid, Deepawali, Dussehra, etc. will yield a fruitful result.

2. Change your products with the weather:

-- You can not expect the users to buy your crop top or sleeveless collection during the winter season. While it may have given you an amazing sale during the summer, it will not be very fair of you to expect the same sale during the winter. Not switching your products according to the weather can also impact your performance greatly. The brands should be prepared in advance & act accordingly.

E.g.: Brands come out with Winter Collection, Summer Collection, Fall Collection, etc. to tackle such a situation. 

Footwear brands focus heavily on boots, woolen chappals, etc. during winter, whereas apparel brands focuses on winter wears.

3. Be aligned with Marketplace sales:

Competing with Marketplace sales hosted by Myntra, Amazon, Flipkart, etc. will not be a good option as CPM rises tremendously during this time. Since Facebook ad works on an auction basis & majority of the placements are taken away by these marketplace ads, it might not be a very wise option to run the sales at the same time with them.

You can instead first look at the annual calendar of these marketplace sales & plan your year accordingly. The annual calendar of these marketplaces are generally available on Google & easily accessible.

4. Incentivize Impulse Buying:

-- Incentivize impulse buying during the on & off-season to boost your sale flow. Running Limited Time Deals, Clearance Sale, Final Close-out Sale, Now or Never Sale, etc.

5. Clear the Excess Inventory rather than carrying it forward:

Run clearance sales at the end of every season to clear out your stock. It helps you to get rid of excess inventory, if exists. It not only helps you in starting afresh but also helps you with a seamless inventory management.