The Impact of Ecommerce Seasonality on Your Ecommerce Business

The changing seasons play a large role in ecommerce trends because they impact product demand.

The impact of ecommerce seasonality can be seen with how the demand for hot products fluctuates with the seasons.

By understanding how the demand for seasonal products changes throughout the year, a small ecommerce business can adjust its marketing strategies to meet customer demand and increase sales. 

Defining Ecommerce Seasonality

In order to structure your marketing strategy in accordance with ecommerce seasonality, it’s important to consider whether your product performance fluctuates with the seasons of the year or with the holidays.

For example, if your small business sells coats, you’re going to see more sales in the colder seasons such as fall and winter.

On the other hand, a business selling toys should consider marketing strategies centered around certain holidays because ecommerce trends favor toy sales during those times.

When you understand how your product performs based on ecommerce seasonality, you can prepare for inventory demands throughout the year. 

Understanding Demand Fluctuations

Ecommerce trends fluctuate with the seasons. This means that during certain seasons or holiday periods, you may sell more products than during others.

As mentioned in the previous example, ecommerce trends show that coat and jacket sales peak in November and December.

A store that sells coats and jackets will financially benefit by meeting the demand for coats and jackets by ensuring that they have enough in stock.

This means that their coat and jacket inventory in the months of November and December should be higher than in months such as June and July which have the lowest coat and jacket sales.

Understanding the impact that a season or holiday period has on your sales will help prepare you for the inventory you should carry to meet the demand. 

Ecommerce Seasonality and Advertisements 

In addition to adjusting inventory demands, ecommerce seasonality impacts advertisement schedules and expenses. During peak sales months, it’s financially beneficial to produce more ads to increase your sales.

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The Google Ads tool can help you track the performance of your ads by showing you how many people clicked on the ad and how many of those ad clicks led to a sale.

It’s important to track how your ads perform to get an idea of the products people are buying and which product ads are not yielding sales.

The Google Ads tool also helps in seeing which season or holiday periods saw the most users click on the ad. 

Preparing for Seasonal Slumps

Once you determine the ecommerce seasonality of your product, you can also see when your ecommerce business experiences a seasonal slump.

Seasonal slump refers to the worst-performing periods for your ecommerce business.

A slump is almost inevitable in any ecommerce business but that should not mean that your sales become non-existent.

When your ecommerce business is approaching a seasonal slump, you can consider some of the following solutions:

  • Can I release a new product? – Depending on the type of ecommerce business you’re running; you might consider releasing a new product that will perform well in a different season or holiday. For example, if your business sells coats or jackets, you may consider releasing lightweight jackets or raincoats for the spring weather. 
  • Can I run a sale? – A sale can benefit you in clearing out a product that does not sell well or one you’re no longer interested in selling at your ecommerce business. 
  • Can I change my marketing strategy? – Adjusting your marketing strategy can mean anything from changing the frequency with which you send emails out to targeting a new audience with your ads. 

It is vital to be financially prepared for a seasonal slump. Proper budgeting during periods of high sales will leave you better prepared to tackle seasonal slumps. 

Tools to Determine Ecommerce Seasonality Trends

Now that you understand what ecommerce seasonality is and the impact that seasons have on ecommerce trends, you can start collecting data to help you determine the seasons your product performs best in.

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There are many tools available to ecommerce business owners that will help them collect ecommerce seasonality data. 

Google Search Console

Your ecommerce site should be SEO-optimized to drive traffic to it. Google Search Console is a tool that tracks which keywords garner the most traffic to your site and also organizes site traffic by time period.

This can help ecommerce business owners understand which periods their product performs best.  

Google Analytics

Once the consumer is on your website, you want to analyze which content they interact with.

Google Analytics is a tool that features information from how long consumers visited your site, how many left, and what content they spent the most time interacting with, among other data. 

Product Performance Reports

A Product Performance Report breaks down information such as total quantities sold, the best performing months, and the best-selling items in your ecommerce business, among others.

If your ecommerce content management system (CMS) doesn’t have a product performance report, you can install a plug-in that will generate one. 

These three tools are vital in determining the ecommerce seasonality of your product.

By understanding your top-performing keywords, best-selling products, products with the highest return on investment (ROI), and top-selling months, you can make the adjustments your ecommerce business needs to improve sales. 

Conclusion

Determining the ecommerce seasonality of the products in your ecommerce business will help you determine how to market your products.

You can increase your sales numbers by being prepared to offer an in-demand product. Additionally, understanding ecommerce trends can help you financially prepare for periods with lower sales.

Thus, taking advantage of various data systems to determine ecommerce seasonality will allow you to have a competitive and profitable ecommerce business. 

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Jonathon Spire

Jonathon Spire

Tech Blogger at Jonathon Spire

My diverse background started with my computer science degree, and later progressed to building laptops and accessories. And now, for the last 7 years, I have been a social media marketing specialist and business growth consultant.

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Jonathon Spire

I blog about a range of tech topics.

For the last 7 years I have been a social media marketing specialist and business growth consultant, so I write about those the most.

Full transparency: I do review a lot of services and I try to do it as objectively as possible; I give honest feedback and only promote services I believe truly work (for which I may or may not receive a commission) – if you are a service owner and you think I have made a mistake then please let me know in the comments section.

– Jon