Stories

Abid Murshed, Head of Sales, PayPal India

As we gear up to celebrate the spirit of the holiday season with Black Friday and Thanksgiving round the corner, increasing demand from global consumers has begun to set the stage with total sales anticipated to reach ₹1 lakh crore in November.¹ To make the most of the opportunities that this season presents, small- and medium-sized businesses (SMBs) need to have a plan in place for enabling easy product shopping and payment checkout experience. This approach could help them to stand out among competitors, fulfil loyal consumers and onboard new ones, and drive sales in the upcoming months leading up to Christmas. Expanding into cross-border commerce can significantly enhance your reach and customer base globally. Let us look at these six effective tactics that can help small businesses achieve a successful festival season.

1. Pay attention to your data

Examine your sales data to pinpoint popular products based on historical trends, helping you determine which items to stock up on before the busy shopping season. A review of the past sales performance can help you make a more accurate prediction of customer demand for specific products, preventing both overstocking and understocking—ensuring you maintain optimal inventory levels. Especially in case of cross-border commerce, analyzing international sales data plays a critical role in identifying trends and preferences in different regions.

2. Enhance the checkout experience

Shoppers anticipate a quick and hassle-free guest checkout process. Businesses that fail to deliver a swift and smooth experience may lose sales and customers. This holiday season, enhance your guest checkout by speeding up the process and implementing tools that identify returning customers, enabling them to check out without remembering usernames and passwords or re-entering payment details for every transaction. Also, ensure your checkout process supports multiple languages and addresses any potential barriers to cross-border transactions. By doing so, you can create experiences that convert prospects into customers and encourage repeat purchases.

3. Expand inventory to meet the anticipated holiday demand

After analyzing your data and determining your needs, replenish your inventory early to prevent stock shortages and shipping delays. Ensure you have a reliable logistics partner to handle cross-border shipping efficiently. Consider developing additional marketing and rewards programs to encourage repeat purchases. Since cash flow can be a challenge for small businesses, particularly before the busy holiday shopping season, explore affordable business credit and working capital options as necessary.

4. Incentivize your customers

The best time to reward your customers is in the run-up to the festival season. In the current economic scenario, most of them are keen on securing good deals to fulfil their shopping needs while saving as much as they can. Research shows that the loyalty market in India is expected to grow by 12% annually to reach USD 5.37 billion in 2024² and 79%³ of customers say they are more likely to recommend brands with good loyalty programs. Offering personalized rich rewards, discounts deals, and loyalty programs can help to drive sales by attracting customers and even encourage repeat customers.

5. Offer a bouquet of payment options

Businesses must know that today, customers are more inclined to transact with a brand that offers their preferred payment option. For instance, some would want to use a credit card to help them maximize their rewards points on a specific vertical. Some others would want to opt for a digital wallet that allows them to checkout without having to enter all their payment and shipping information or even an alternative payment method. As a small business you can ensure to maximize your sales opportunities, by offering your customers a range of popular payment options. Digital payments in India are experiencing rapid growth, driven by new business models, evolving technology, and heightened customer awareness. In FY 2023–24, the year-on-year transactional volume increased by 42%, and it is expected to triple by FY 2028–29.⁴

6. Re-engage with newer consumers

Throughout the festival shopping season, expect new customers to visit your site. Ensure you have the right tools to gather important customer information, allowing you to retarget them later with personalized offers on related products they’ve purchased to boost repeat sales. Tailor your re-engagement strategies to different cultural contexts and shopping behaviors. Additionally, consider sending follow-up emails to remind customers about products they viewed but did not buy, helping to keep your business and offerings at the forefront of their minds.

As the festivities begin, small businesses that adopt the tactics mentioned will be well-suited to convert prospects into customers, enhance the experiences of their existing customers to encourage repeat purchases, and ultimately increase their sales.

If you are a small business looking to reach international customers this festive season, read here to know more.

¹ Festive Season Will Generate ~₹100,000 Crore In Online Sales
² India Loyalty Programs Market and Future Growth Dynamics Report 2024: India's Loyalty Market is Forecast to Grow from US$4.79 Billion in 2023 to Reach US$7.92 Billion by 2028
³ 107 staggering statistics that show the power of loyalty programs in 2024
⁴ Indian Payment Handbook 2024