Cyber Monday is an important day for retailers because it allows them to boost sales before the holiday season. But is it really cheaper than Black Friday?
Some categories, like electronics, pajama sets and must-have toys, tend to see better discounts on Black Friday. But other items, like kitchen appliances and furniture, see deeper discounts on Cyber Monday.
Understanding Price Reductions on Cyber Monday
If you are planning to buy a specific item for yourself or for someone else, Cyber Monday can be a good time to get it. The deals are usually better than those on Black Friday, and you can often find coupons that stack. But, if you don’t have a particular item in mind, it might be better to shop later in the holiday season when retailers typically unload toys, video games and clothing.
Cyber Monday is a shopping event that takes place on the first Monday after Thanksgiving (in late November or early December). It was originally created as an online alternative to Black Friday, when National Retail Federation observers noticed that consumers continued buying items even as they returned to work from the holidays.
Since its inception, Cyber Monday has grown to be a major online shopping event. It is also known for offering great bargains on electronics, such as laptops and PCs, TVs and video games. Many retailers offer free shipping on Cyber Monday, which further increases the value of a purchase. However, some shoppers don’t know exactly how much better the deals are compared to prices on other days of the year.
Average Discounts on Cyber Monday
After a long Thanksgiving weekend of family, food, and football, many American shoppers are ready to shop. They can camp out in front of their favorite store and fight their way through a mob of bargain hunters at the crack of dawn on Black Friday, or they can roll out of bed, pour a cup of coffee, and browse online for Cyber Monday deals.
The average discount on Cyber Monday is 26%, and small retailers can see up to a 501% sales increase that day. This is a great opportunity for small businesses to compete with large retailers, but it can also be confusing and overwhelming for consumers who don’t know what to look for.
Compared to Black Friday, Cyber Monday offers better discounts on electronics and appliances, while it has smaller discounts on apparel and toys. This year, there are also more coupons and discounts available for Cyber Monday, which is good news for consumers. Moreover, ecommerce sales are up over the holiday weekend, a good sign for retailers. However, there is a caveat: Some retailers may be using low-quality product pictures to lure shoppers and entice them to buy. As a result, shoppers should be careful and read the fine print.
Cyber Monday Prices vs Regular Retail Prices
The first Monday after Thanksgiving is Cyber Monday, an online shopping event in which retailers slash prices and offer free shipping. It’s become a major landmark of the holiday season, when shoppers are looking to make savings on gifts for friends and family as well as themselves.
Unlike Black Friday, where you have to skip your family dinner or camp out in the parking lot, a shopping spree on Cyber Monday can be done from the comfort of your own home. Just log on to the websites of the stores you know will have the items you’re after, and then browse for deals. You can even sign up for email lists to get coupons or offers you can use on Cyber Monday.
According to Ramhold, it’s important to do some price research ahead of time. That means making a list of the products you want to buy, then noting their current prices at various retailers. If a certain item is in high demand, you may be better off buying it on Black Friday or earlier so that you don’t miss out.
You can also shop later in December, when some retailers are trying to clear out seasonal merchandise, McGrath says. That’s when you might see discounts on things like clothing and footwear. Last year, for example, Converse offered Chuck Taylor All Stars for $25 and Nike sold Air Zoom-Type Crater shoes for 30% off.
Limited-Time Deals and Flash Sales
Many retailers offer limited-time deals on Cyber Monday that are not available later in the year. This is a good way to move inventory and excite shoppers with new offers. It also creates a sense of urgency to encourage shoppers to buy before the deal expires. This type of offer is especially effective for products that are in high demand or difficult to ship.
Some examples include clothing, shoes and beauty items. Last year, Ulta offered a 3-pack of Burt’s Bee’s liquid lipstick for $7 and a Revlon NYX eyeshadow palette for $11. It’s also common for apparel retailers to offer discounted online-only sales on Cyber Monday.
You can also find great limited-time deals on household goods like kitchen appliances and mattresses on Cyber Monday. This is the best time of year to score a major bargain on a Dyson vacuum or air purifier, for example. And you can save up to 50% on Ugg boots and slippers.
Look for limited-time offers on popular toys and games as well as seasonal merchandise on Cyber Monday. In 2021, Target’s Cyber Monday offerings included a PlayStation 4 Pro for $299 and those famous blue tins of Danish butter cookies that could be repurposed as a sewing kit.
Price Tracking and Pre-Cyber Monday Research
As online shopping has become increasingly popular, more consumers are looking to take advantage of Cyber Monday discounts and sales. To do this, they often use a price tracking tool to keep an eye on the prices of specific products. This allows them to identify when a product’s price drops below their target amount, making it more affordable to purchase.
As a result, Cyber Monday is one of the biggest shopping days of the year for both small and large retailers. The ecommerce holiday generated $10.8 billion in sales in [year], surpassing Black Friday and becoming the largest ecommerce selling day of the year (CNBC, 2021).
Despite this, shoppers can also find great deals throughout the rest of the month. For example, many stores offer Black Friday-like discounts on clothing in the weeks leading up to the holiday. Additionally, some retailers also run ongoing sales on their most popular products to increase customer loyalty.
As such, it’s important for retailers to distribute their prices across multiple markets and offer attractive promotions on slow-moving products. Furthermore, they should focus their Cyber Monday marketing efforts on the most valuable customers to maximize sales and revenue. This way, they’ll encourage shoppers to return to their stores in the future and help them grow as a business.
Competitive Pricing and Price Matching Policies
As online shopping continues to break sales records (last year it reached 5.2 trillion, which is 52 plus 11 zeros), businesses have had to get creative to incentivize customers. Some of these tactics include price matching and discounted shipping.
Price matching is a common strategy among retailers and can help them stay competitive in the market. This practice is often used to improve customer loyalty, which can lead to higher ROIs for the business. It also provides a level of transparency for consumers, as they can easily find the best prices from competitors when searching online.
However, there are some concerns with this pricing strategy. For example, it can decrease margins, which may make it difficult for a business to maintain a profitable model. Additionally, it can lead to price wars between competing businesses, which can eat into profits and hurt consumer confidence.
Most stores have a variety of restrictions on their price matching policies. For instance, some retailers will only match prices from physical locations within a certain radius, while others will not accept prices from competitors that sell exclusively online. Other restrictions include clearance items, free gifts, as-is and demo models, and special promotions (like buy-one-get-one deals). Customers should check out a store’s online policy before they shop to be sure what is and isn’t eligible for a price match.
Conclusion: How Much Cheaper Is Cyber Monday?
Whether you’re searching for the latest high-tech gadget or a classic piece of furniture, Cyber Monday offers a great opportunity to find incredible deals. Just be sure to check the prices before making any purchases to make certain that you’re actually getting a bargain. And if you’re shopping for something in particular, be sure to research the best offers from various retailers before choosing one.
Since the first Cyber Monday debuted in 2005, it’s become a major online shopping event with tremendous growth potential. To benefit from this day, retailers need to prepare well in advance, ensuring that their ecommerce systems can handle the increased demand for products and services. They should also invest heavily in promotional campaigns and paid search advertising to capture shoppers who may be delaying their purchases until this event. And because mobile shopping is increasing in popularity, they should ensure that their websites are optimized for smartphones, as well. Otherwise, consumers will take their custom elsewhere. Good luck! — by John Lewis.