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11 Oct 2024

Dynamic Pricing and Price Monitoring Trends Around Black Friday

Dynamic Pricing and Price Monitoring Trends Around Black Friday
By Omnia Retail  Black Friday has long been a major event for eCommerce retailers. But the landscape is changing, particularly after the Omnibus ruling in 2023, which has driven retailers to rethink their pricing strategies.  In this blog, well explore key trends from our recent analysis of 40,000 products, highlighting what eCommerce retailers and brands are doing before and during Black Friday to manage pricing and maximise profits.

The early start to Black Friday discounts 

A noticeable trend in recent years is the early launch of Black Friday discounts. Industry experts such as IMRG have documented this trend year after year, where Black Friday is no longer just one day, but the entire month of November, and even parts of October and December.  Rather than waiting for the day itself, many retailers begin their promotions up to 10 days before. This tactic aims to capture early shopper interest and spread the purchasing window across a longer period.   While significant discounts are still reserved for Black Friday, the weekend that follows often sees even steeper price cuts”especially on Saturday”as retailers push to clear stock and maximise customer acquisition before campaigns end.  These heavier Saturday discounts reflect a highly dynamic pricing landscape, where prices are adjusted in real-time based on factors such as demand, competition, and stock levels.  We anticipate that for Black Friday 2024 and beyond, more retailers will optimise their pricing strategies in response to market movements, ensuring they remain competitive while protecting profit margins.  By closely monitoring the market, retailers can better decide how long to run their campaigns and ensure their discounts arent overly generous.   For example, if a retailer offers a branded top at 50% off while competitors are only offering 20% off, they could adjust their discount to be closer to market levels, e.g., 25% off.  Price-sensitive customers who compare deals across sites may still be likely to choose retailers even with a slightly better offer. 
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