With Black Friday and Cyber Monday rapidly approaching, we thought we’d take a look at some key trends and insights from our own transaction volumes and values in 2014 and share some predictions for 2015.
Black Friday & Cyber Monday 2014
1. More People Shopping Online
On Black Friday and Cyber Monday 2014, we recorded significant increases in online transactions. Between Black Friday and Cyber Monday, we processed 2.7 million transactions through our payment gateway, totalling more than €334 million worth of business over a four day period.
2. The Black Friday Effect
Black Friday, originally a US phenomenon, was traditionally a post Thanksgiving in-store event which has now taken the UK and Ireland by storm. Our transaction figures for 2014 show that Black Friday is now a fully fledged online campaign as retailers look to extend their reach to millions more customers across borders with irresistible deals and special offers in the run-up to Christmas.
It’s no surprise then that we recorded a staggering 17.5% increase in transaction volumes on Black Friday last year compared with the same day in 2013, as 900,406 online transactions worth €111.6 million were processed.
Perhaps more significantly, Black Friday was, for the first time, a busier day for online transactions than Cyber Monday in Ireland and the UK, posting 0.8% more transactions over a full 24 hour period.
3. Higher Value Transactions processed on Cyber Monday
Nevertheless, we still recorded an increase of 8% in online transactions on Cyber Monday in 2014 over 2013, with 893,113 authorised payments passing through our payment gateway. Interestingly, Cyber Monday still posted a higher total value of transactions (€123 million) than Black Friday despite fewer transactions being processed. Notably, transaction volumes peaked between 11am and 12pm on both Black Friday and Cyber Monday as 72,607 and 72,054 transactions respectively were processed.
Predictions for 2015
1. Further Increases for Mobile Spending
When you are formulating your ecommerce strategy for this year, think mobile. Recent analysis by IBM found that mobile accounted for 47.3% of UK online sales on Black Friday in 2014, a 35.5% year-over-year increase, while on Cyber Monday, sales via mobile devices increased by 29.3%.
However, research from Formisimo.com found that only one in five mobile users who began buying something made it to the end of the purchasing process between midnight Thursday and midnight Monday. This one statistic alone conveys the importance of a mobile-optimised checkout process – make sure you don’t lose sales to a bad user experience!
2. High Demand for Click and Collect
‘Click-and-collect’ proved to be a popular feature of online retail during the 2014 festive season. According to research conducted by YouGov on behalf of JDA, 39% of online Christmas shoppers opted to use click & collect services last Christmas. The demand for click and collect seems set to rise further, with IMRG predicting a 20% growth in popularity per year. This is something clicks and bricks merchants can take advantage of this Black Friday and Cyber Monday.
3. Broken Records
Digital commerce consultancy Salmon has predicted that Black Friday 2015 will be the UK’s first £1bn online shopping day, with 30% of online shoppers planning to buy online this year. Can your website and payment process handle the additional traffic? Advance testing is advisable.
Realex Payments’ payment gateway operates at 5% capacity, meaning that there is plenty of room for any spikes in the volume of transactions processed, so our merchants can be assured of a reliable payment service, whatever their volume of online sales. In all things ecommerce, we wish all our customers a very successful Black Friday and Cyber Monday 2015.