It seems Wayfair's new retail holiday paid off, as sales reportedly jumped 400% on April 25. The 24-hour sales, called Way Day, was meant to offer consumers prices as low as Black Friday and free shipping, which seemed to resonate with consumers.
According to data from Edison Trends, a company that analyzes e-commerce trends based on email receipts from purchases, New York shoppers spent an average of 400% more than the same day in March, and Pennsylvania and California shoppers spent about 300% more than on March 25.
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Other states where dollar spend on Way Day was increased significantly include Illinois, up 210%; Florida, up 110%; and Texas, up 101%.
In addition to sales, the special day brought in more unique buyers, up almost four times the average at Wayfair from the month previous. The average consumer order on Way Day was around $276, similar to the average for the previous month ($275).
"Today’s consumers are becoming increasingly knowledgeable and strategic in the way they shop, doing more research and comparison shopping before they commit to a purchase. With so many options available to them online and in store, these savvy shoppers are showing through mass purchase events like Black Friday, Cyber Monday and Amazon’s Prime Day that the demand for major discounts is growing. To meet that need, we are seeing brands like Wayfair obliging with high discount sales like Way Day," Hetal Pandya, co-founder of Edison, told FierceRetail.
Although Wayfair tends to have reasonable prices much of the time, quite often with discounts of 60% or even 80% off list prices, Way Day had extra markdowns of 20% and 30%—sometimes 60%—off. Pandya noted that the event was well advertised and garnered high visibility from retail media outlets as well to drive attention.
The big sales increases on Way Day demonstrates that the event does seem to resonate with consumers.
"We already know that Cyber Monday gets bigger and more popular year on year, with those across the pond in Europe even getting in on the act," Pandya said. "Black Friday and the holiday season is such a hyper competitive time of the year, that brands are having to innovate their sales strategies with more of these kind of 24-hour events and promotions to own the day and not get lost in the noise."
Pandya said that marketing effectively ahead of time is important in these events in order to bring in new shoppers. Plus, timing is a big consideration—executing a sale when no other competing or major sales are taking place.
In conclusion, Pandya said that Way Day is a good example that other merchants can learn from.
"Now more than ever merchants need to innovate and find ways to stand out in a hyper competitive market filled with savvy shoppers," Pandya said. "To help that effort, they should have a business data strategy in play that is going to help them always be learning to win the day."