Black Friday is just around the corner, and with it comes the excitement of scoring some great deals and discounts.
While it is an exciting period for shoppers, big companies such as Amazon, Apple, Samsung and others make some of their largest gains of the year precisely in this period. In 2022, Amazon announced that the Black Friday shopping season of that year was their biggest ever.
However, with all the hype surrounding this shopping holiday, it's important to approach it with a smart and strategic mindset. In a survey conducted by Octa, such a mindset was one of the qualities the more experienced traders possessed - reflecting their extensive financial markets background.
This year, Octa’s experts analysed the most common Black Friday offers and devised some rules to incorporate when spending money this shopping season. Here are some of the most common offers from big stores and companies this year:
Early access lists
One of the most effective tactics used by big companies is the creation of early access or “early bird” lists. These lists give certain customers the opportunity to shop for Black Friday deals before they are made available to the public. This not only creates a sense of exclusivity for those on the list, but also encourages customers to make purchases early to secure their desired items.
Time-limited deals
Time-limited deals are another popular strategy employed by big companies during the Black Friday season. By offering limited time discounts on select products, companies create a sense of urgency and encourage customers to make quick purchases. This tactic not only drives sales but also creates excitement and anticipation among shoppers.
Free shipping promos
Free shipping promos are also a common feature of Black Friday promotions. Many companies offer free shipping on all orders or orders over a certain amount, in an effort to entice customers to make purchases without the added cost of shipping. This is a particularly attractive offer for online shoppers, as it can save them a significant amount of money on their purchases.
Targeted discounts
By offering personalised discounts based on a customer's browsing and purchasing history, companies can tailor their promotions to individual shoppers, increasing the likelihood of a sale. This not only provides added value to the customer but also helps companies maximise their sales potential.
Free gifts with a minimum purchase
Many big companies offer free gifts with a minimum purchase during the Black Friday season. This tactic incentivises customers to spend more to receive a complimentary gift, making it advantageous for both the customer and the company. This strategy not only increases the average order value but also helps companies clear out excess inventory by bundling products with popular items.
Be a smart customer this Black Friday
Not all Black Friday offers are equally good – some companies only make them look advantageous when, in fact, they are created solely to benefit the seller. To find truly great deals and not overspend during Black Friday, one can use strategies that are in common with the analytical approach taken by traders in the financial markets.
A survey conducted by Octa in 2022 showed, among other things, several ways that trading experience affects the Black Friday shopping experience of traders. According to the survey, 77.9% of traders compare the prices before and during Black Friday with varying frequency - highlighting the prevalence of an analytical mindset common among professionals in the financial markets.
Here are Octa’s tips for approaching Black Friday smartly – based on the tactics traders use during the shopping season:
1. Research the market
It's essential to do your research. Before the big day arrives, take some time to browse through the ads and promotions from your favourite stores. List the items you're interested in and compare prices across different e-commerce platforms. This will help you identify the best deals on the market.
2. Stick to your budget
Another important tip is to set a budget and stick to it. It's easy to get caught up in the excitement of Black Friday and overspend on items that you don't really need. By setting a budget and being disciplined about your spending, you can avoid falling into the trap of impulse buying and regretting your purchases later on.
3. Be mindful of flash sales
When it comes to limited-time offers and flash sales, it's important to act quickly but also be mindful of your purchases. Just because something is on sale doesn't mean you should buy it if you don't really need it. Focus on the items on your list and prioritise those over-impulse purchases. Octa's survey says traders with less trading experience make spontaneous purchases more often.
4. Monitor social media
In the age of social media, many retailers use their platforms to create excitement around their Black Friday deals. Keep an eye on your favourite stores' social media accounts for sneak peeks of their promotions and exclusive discounts. This can give you a starting point for planning your shopping strategy and ensure you don't miss out on any great deals.
5. Know your rights
Another important tip is to be aware of return policies and shipping costs. Some retailers offer free shipping and returns, while others may have strict return policies or high-shipping fees. Be sure to read the fine print before making a purchase, especially if you're buying from a new or unfamiliar retailer.
Black Friday deals that help you earn, not spend
Some Black Friday deals that can help you earn rather than spend include cashback offers, purchase reward points, and gift card promotions. These types of deals allow you to receive some form of monetary or point-based reward for your purchases; ultimately helping you save money or earn additional benefits while shopping. Additionally, some retailers may offer trade-in programmes or discounts for trading in old electronics or items. This allows you to earn credit towards new purchases.
Octa, an international broker, is launching a major promo campaign that will take place from November 20 to 24. The promo is aiming to turn Black Friday into an earning - rather than spending - period.