Specificities of the trade in seasonal goods

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Every business owner wants to increase profits. Entrepreneurs involved in e-commerce, particularly dropshipping, are no exception. Seasonal products can be a quick and profitable business. But you can't build a solid business on New Year and Christmas decorations or 'valentines' alone. Specialists from Oise Trade tell us how to work with seasonal goods.
Types of seasonality
Seasonal demand is the fluctuation in demand for a good or service. The level of demand is influenced by the time of year, holidays, the start of the school year, promotional periods, weather and other environmental and social reasons.

Three types of seasonality can be distinguished, depending on the difference between seasonal and non-seasonal sales volumes:
  • Moderate. The difference in sales volume is 10-20 percent. In principle, such goods can be classified as all-season goods, as they sell fairly well throughout the year. Examples are food and children's products.
  • Bright. The difference in sales is 30-40%. In this case, the profit in the "off-season" is quite low. These are, for example, goods for dachas, agricultural equipment, goods for beach holidays and goods for repairs. If you decide to sell goods with a strong seasonality, the assortment should be diluted and all-season goods should be sold.
  • Narrow. The difference in sales volume is between 50% and 100%. These are goods that are relevant at a strictly defined point in time, linked to holidays, calendar events, traditions and habits. For example, Christmas decorations or teddy bears with hearts for 14 February, which no one needs the day after the holiday. Of course, such products should only be a small part of the range, so that you can make money on other products during the rest of the year.
What to consider when selling light and hard seasonal items
Obviously, the sales strategy will depend on the type of product you choose. For beginners, it is better to start with all-year-round goods in order to have a stable income. Over time, as you gain experience, you can dilute this with moderately seasonal goods, as it is less risky to sell them.

The question may arise: why bother with strong and weak seasonality at all? The answer is that the stronger the seasonality of a product, the more profit you can make in the season of demand for that product. But only with the right approach.

You have to prepare for the season of a particular product. If you start choosing a New Year's product in October, it will be too late. The fact is that many shoppers look for goods in advance and sometimes buy them before the season starts. Secondly, at the beginning of the season, your product cards should already be at the top of the search engine. This is the only way to get the most out of selling seasonal goods. Otherwise, you simply will not have the time to get a good position in the search engine and most of the sales will pass you by.
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It is important to prepare in advance for a period of high demand. Preparation includes
  • Working out the range;
  • Buying goods (or finding a supplier if you drop ship);
  • Reviewing and editing the catalogue;
  • Updating product cards, adding missing information and images;
  • Calculating allowable discount limits;
  • Sending out advance notices to customers.
The season must end on time. It is important to take stock into account and sell as much as possible (this does not apply to drop shippers, who do not need to hold stock).
It is important to keep track of how your product is selling, how much is left and how many days are left until the end of the season. With this information, you can plan your sales. For example, you have calculated that you need to make 50 sales a day to sell out before the end of the season. But so far you've only made 40 sales. In this case, you need to stimulate sales. All sorts of raffles, discounts, sales will help. In extreme cases, it is better to sell at cost than to lose money.

If you need advice on sales management, marketing strategy development and other aspects of working in e-commerce, please contact Oise Trade Company.
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