In e-commerce, flash sales are one of the most widely used marketing tools for generating maximum sales over a limited period of time.

This promotional sale can take many forms, and offers many advantages. But is it a solution to be deployed at all costs? And what are the best practices for a successful flash sale?

In this article, Rakuten France answers all your questions. Definition, advantages, disadvantages, advice... We'll help you prepare for your next flash sale.

What is a flash sale?

Flash sales: definition

A flash sale is a promotional operation that offers a substantial discount on the products on sale. And for a (very) limited time.

The regulations governing flash sales are much more flexible than those governing sales. Few prohibitions are imposed in e-retail. So, if you want to launch a flash sale, you can :

• Organize as many flash sales as you like, throughout the year.
• Choose the limited duration of your choice, as long as it's clearly stated: 3h, 12h, 24h...
• Use the promotional offer of your choice (up to 80%). This reduction must be applied to the lowest price displayed in the 30 days preceding the start of the promotion.

As with sales, sales at a loss are prohibited during flash sales. As an e-tailer, you are also obliged to supply customers with the items concerned throughout the operation. Watch out for stock-outs, the enemy of flash sales !

The different types of flash sales

Thinking about your next sales and marketing operation? Flash sales are an attractive and beneficial initiative (for customers and retailers alike), which can take a number of different forms:

• Flash sales on specific products : are some products about to expire ? Do you have a stock of items to sell off? Targeted flash sales are an option, to boost sales of specific products.
• Flash sales limited by promotional coupon : to encourage your customers to buy as quickly as possible, create promotional coupons limited in time and quantity. Buyers will feel a sense of urgency and scarcity, and will be more likely to use your offer.
• Flash sales on the entire catalog : for a very limited time, have you thought of offering your entire stock of products at a discount? This is the ideal way to generate sales during periods of low sales activity.

Whatever the type of flash sale, the advantages are numerous. But beware of the risks for your online store !

 

Why organize (or not) a flash sale?

 The advantages

Flash sales are very popular with customers and e-tailers alike. There are many reasons for this:

• Sense of urgency and scarcity : limited duration, limited stocks, exceptional offers... There are many psychological biases influencing consumers. In particular, they create a sense of urgency and scarcity, inviting consumers to make up their minds (very) quickly, without taking the time to compare or the risk of abandoning their shopping baskets. A godsend for retailers !
• Increased traffic : during the flash sale period, visits to e-commerce sites rise sharply. The result? Maximum visibility, new buyers, cross-selling and up-selling for the company.
• A boost to brand awareness : if flash sales are accompanied by marketing and communication initiatives, you're sure to reach a new audience... and gain brand recognition. Perfect for your brand image!
• Improved sales : if the operation is well executed, growth will be stimulated. The volume of sales over a short period contributes to increased turnover. A good return on investment (ROI) !
• Retaining existing customers : your favorite customers like to save money. So they keep an eye on your sales offers, and are bound to be seduced by a flash sale. It's the ideal opportunity to encourage repeat purchases and long-term customer commitment. What's more, exceptional discounts encourage customer satisfaction: a winning combination!
• Stock rotation : thanks to this type of operation, you can sell off less popular products to make more room in your inventory. Flash sales improve and facilitate inventory management.

 

 The downside

Although flash sales are an opportunity for e-retailers, they also represent certain risks. To preserve your financial health and guarantee a memorable customer experience..:

• Lower margins : be careful not to turn flash sales into a threat to your profitability. With excessive discounting, you run the risk of sacrificing your sales margin, which is the key KPI for success in e-commerce.
• Brand image damage : some consumers may feel pressured by flash sales. The result? They turn away from the brand, resulting in lower customer engagement. For other customers, flash discounts are synonymous with poor product quality. This perception is detrimental to the brand's image !
• More volatile customers : flash sales often generate a peak in sales. But these buyers are much more volatile than normal. Do you have an action plan for building customer loyalty? How will you keep in touch with them? To limit the risk of "one-shot" customers, anticipate the "after flash sale".
• Activity overload : when sales increase over a short period of time, so do the orders you need to anticipate. Do you have the resources to handle such a peak in orders? And guarantee on-time delivery to satisfy your customers? Your e-commerce logistics must be a priority. Have you considered outsourcing to Rakuten.

 

 

8 best practices for successful flash sales

 

1. Set a clear objective

Why do you want to organize a flash sale on your e-commerce site? If the answer to this question isn't clear, skip it. A SMART objective is necessary to ensure the success of such an operation.

The sales objective must be specific, measurable, achievable, realistic and temporally defined.

A case in point? Your mattress e-shop launches a brand-new product: a bed base. The objective is to make the product known to as many people as possible (minimum 5,000 unique visits) and generate 300 sales through a 24-hour flash sale.

As an e-tailer, you may also be motivated by the need to clear stock of an item quickly, to increase orders according to the seasonality of sales, to attract a new type of customer... It's up to you to choose your objective.

2. Estimate profitability

No flash sale without calculations. It's as simple as that: before launching a flash sale, think about your achievable margins, your potential profit and your profitability. Preserving your ROI is a priority!

You need to find the right balance between offering customers an attractive product... and making a fair profit for your e-commerce site. After all, selling at a loss is unthinkable.

On average, the sales margin for an e-commerce site starts at 30%. Have you calculated yours?

3. Choosing the right time

As its name suggests, a flash sale can't last several days. And even less several weeks, unlike a summer or winter sale. The optimum duration for a flash sale is between 3 and 24 hours. Beyond 72 hours, you lose the desired effect.

The more limited the sale, the more important the timing. According to an Experian article, flash sales communicated by e-mail after 3 p.m. perform better than those scheduled for the morning or lunchtime. In France, evenings (after 8 p.m.) and Wednesdays are the most popular times for online purchases. Conversion rates are higher on weekdays than at weekends.

Finally, the French are increasingly adept at m-commerce. From their smartphones, they buy mainly in the afternoon, between 3pm and 7pm (source: OpinionWay study, 2021). Keep this in mind when organizing your next flash sale !

4. Define a communication plan

To get to the heart of your target, a communication plan is essential. It helps you define the channels, the back-planning and the messages, to promote the flash sale. Our advice?

• Know your target, so you can choose the best channels : e-mail, sms, posts or ads on social networks, Google Shopping ads... Communicate wherever your audience is (and if possible, omnichannel, to multiply your chances of being seen). On average, 56% of companies have a higher click-through rate on their flash sales e-mails (compared with other types of e-mail), according to Experian.
• Optimize your copywriting to create powerful messages : to avoid creating false expectations, carefully prepare your communication. Be clear and precise about the items on sale, their quantity, the duration of the flash sale and the return policy.
• Plan a realistic timetable to maximize marketing impact : communicating the day before the flash sale? Not a good idea. The sooner you share your offer, the more people will be interested. Start communicating several days (or even weeks) before the offer, as well as on the big day.

5. Choose the right target

Wanting to target everyone is the best way to reach no one. So what's your priority during this promotional sale?

For example, if you want to acquire new customers, there's no need to address your entire existing customer file. Instead, advertise on social networks (like Facebook and Instagram) or Google, to reach a new audience. And do it using keywords associated with your products on sale... Or using your competitors' audiences!

When using such a targeting system, be sure to remove the segment of your customers who have already purchased your item when it was at full price. Imagine their disappointment and dissatisfaction if they came across an ad offering a massive discount they hadn't taken advantage of...

On the other hand, your flash sale can be a loyalty-building tool. In this case, remember to target only existing customers (by e-mail, adverts, SMS, etc.). Reward these customers for their loyalty, with an exceptional offer... And reinforce their commitment to you.

6. Check inventory

Stock management is an essential step in ensuring the success of your flash sale. Before you even start advertising, make sure you have the right quantity of items for sale in stock. By doing so, you protect yourself from stock-outs, which penalize your customers and your business.

To ensure optimal tracking and logistics, here's a solution: use a service like Rakuten Fulfillment Network. With just a few clicks, you can control your entire e-commerce logistics. A real-time view of your inventory is a considerable advantage, enabling you to anticipate demand and avoid stock-outs.

 

7. Anticipate logistics

Before the flash sale, it's essential to anticipate stock management. Then, as soon as the operation begins... It's just as important to take care of logistics: packaging items, dispatching orders, delivering parcels, after-sales service, etc. Have you anticipated all these key stages, which will guarantee a memorable customer experience?

To avoid turning logistics into a headache, take advantage of a turnkey service like Rakuten Fulfillment Network. You outsource the logistics of your e-shop, while reducing your costs (25% savings on average). Meanwhile, you can concentrate on your core business: selling.

8. Prioritize quality over quantity

Better one flash sale every 3 months, than 3 flash sales every week. In e-commerce, quantity quickly becomes the enemy of quality ! In fact, if you organize too many promotional offers, you'll only be able to count on your customers at those times. The result? More customers the rest of the year.

The risk of becoming dependent on promotions to attract customers is real. So, chi va piano, va sano: don't hold too many flash sales... But organize them properly, so you can benefit from the results over the long term.

 

It's possible to create a flash sale on Rakuten !

Would you like to benefit from a community of 12 million responsive buyers ? Create your e-shop on our Rakuten marketplace, and benefit from all our advantages: online traffic, increased acquisition, turnkey logistics tools... Not to mention the possibility (and freedom) of organizing your own flash sales, to boost your growth.

Once your products are online on our marketplace, nothing could be simpler:

• Contact your E-Commerce Consultant to present your idea for a flash sale (on your entire e-shop, or just a selection of products).
• Your E-Commerce Consultant will create a Rakuten Coupons campaign and activate it on your ads. These coupons are limited in time and quantity. They are automatically placed in strategic Rakuten locations, such as the Rakuten Deals page and on product sheets.
• You will then receive an e-mail summarizing the operation : click on "Validate Operation".
• You can then promote this flash sale via our Rakuten Ads offer or via our e-mailing channels (sponsored newsletter).
• Then enjoy the results.

Flash sales now hold no secrets for you. Definition, advantages, best practices... Now you know why and how to create your own flash sale. Why not launch your next one on Rakuten?

12,000 professional sellers trust us and are active on the marketplace. Join them and organize your own promotional operations to boost your sales and visibility: