Ecommerce
November 8, 2024

Ecommerce Brands Biggest Mistakes During BFCM

Author
Daniel Doan

Black Friday and Cyber Monday (BFCM) represent the most critical sales period of the year for ecommerce brands, generating billions in revenue across the industry. For online retailers, these peak shopping days can make or break their annual performance, with successful execution leading to record-breaking profits, while poor planning can result in devastating losses. 

With fierce competition and high customer expectations, ecommerce brands must get everything right—from website performance to inventory management to shipping and logistics—or risk losing market share to better-prepared competitors.

Supply Chain and Inventory Issues

Sales events like Black Friday and Cyber Monday push ecommerce operations to their limits. Online store managers juggle massive inventory shipments while sales numbers hit record highs. Product shortages can tank customer satisfaction and revenue targets in hours. BFCM generated approximately $9.8 billion in sales on Black Friday and $12.4 billion on Cyber Monday last year, marking a significant revenue boost for ecommerce retailers.

BFCM Mistake #1 for Brands: Late Inventory Shipments

  • Missing delivery deadlines causes major problems when stores plan for big sales events
  • Customers get angry when products don't show up on time
  • Sales staff spend hours explaining delays
  • Phone lines fill up with order inquiries
  • Warehouse teams struggle to process incoming stock
  • Solution: Build extra time into schedules

BFCM Mistake #2 for Brands: Warehouse Capacity Problems

  • Storage space becomes precious real estate during the holiday season
  • Small warehouses pack shelves to the ceiling
  • Larger facilities juggle multiple delivery trucks
  • Staff needs room to move safely and find products quickly
  • Many stores rent temporary storage units for overflow

BFCM Mistake #3 for Brands: Stock Forecasting Errors

  • Over 230 million shoppers participated in Black Friday 2023
  • Unpredictable shopping patterns cause inventory issues
  • Last season's bestsellers may sit untouched
  • Unexpected hits sell out within hours
  • Stores lose money both on stockouts and excess inventory

Financial Planning Failures

Many online stores struggle with money management during Black Friday and Cyber Monday sales. Store owners miscalculate stock requirements. Empty shelves or excess inventory drain profits. Unexpected shipping costs deplete emergency funds. Poor planning affects revenue long after December ends.

BFCM Mistake #4 for Brands: Marketing Budget Shortfalls

Shoppers spent an average of $256 during BFCM 2023, yet many small stores missed these sales due to empty marketing budgets. Ad costs spike during peak shopping days, draining funds meant to last the entire season. Large companies snap up prime advertising spots, pushing small stores off customer screens. Without money for last-minute marketing pushes, stores watch holiday shoppers click through to competitors instead.

BFCM Mistake #5 for Brands: Poor Cash Flow Management

Sales events strain online store bank accounts. Inventory purchases deplete funds weeks before revenue arrives. Marketing costs and staff wages increase rapidly. Limited cash reserves prevent quick stock purchases. Proper money management supports growth during peak periods.

Importance of Funding Solutions

Online stores need fast capital during sales seasons. Alternative funding speeds up cash access. Store owners research options before emergencies occur. Each business requires specific funding types. Knowledge of financing choices increases sales success.

  • Invoice Funding

Clearco offers ecommerce businesses a streamlined way to fund their unpaid customer invoices. Companies can get funding in as little as 24 hours based on their revenue history and business performance. 

With predictable weekly payments, stores can manage inventory and costs without disrupting cash flow. To qualify, businesses need to demonstrate at least 12 months of revenue exceeding $10,000 USD monthly. Funding capacity is tailored to each business, taking into account factors like sales history, business attributes, banking records, and advertising performance.

  • Receipt Funding

Clearco helps ecommerce businesses access funding against paid vendor receipts, ideal when you've already invested in inventory, marketing, or logistics. Their platform offers funding in as little as 24 hours through a non-dilutive solution with predictable weekly payments. 

This allows businesses to maintain healthy cash flow even after making upfront vendor payments, without collateral or personal guarantees. The funding amount is customized to each business's needs rather than requiring acceptance of a large lump sum, helping businesses better manage their capital while keeping profits from high-earning periods in their accounts.

  • Inventory Funding

Using invoice and receipt funding, Clearco helps ecommerce businesses buy inventory. The platform offers funding up to $1 million USD within a 60-day period, with individual transactions capped at $500,000. Businesses can get reimbursed for paid vendor receipts or fund upcoming inventory purchases, with approval possible in as little as 24 hours. 

The platform uses predictable weekly payments rather than daily revenue deductions, making it easier for stores to plan their cash flow. This flexibility is especially valuable during key shopping seasons like Black Friday and Prime Day, allowing businesses to stock up on inventory while maintaining their cash reserves.

Operational Timeline Mistakes

Ecommerce brands often face significant challenges during the Black Friday Cyber Monday (BFCM) season due to operational timeline mistakes. These errors can severely impact a brand's ability to capitalize on the surge in consumer demand during this critical sales period.

BFCM Mistake #6 for Brands: Missing Key Warehouse Deadlines

Failing to meet crucial warehouse and inventory deadlines can lead to shortages and fulfillment delays during BFCM. This includes not ordering enough stock in time or not preparing the warehouse for the influx of orders. 

For example, a clothing brand might underestimate demand for a popular item and fail to restock before the cutoff date, resulting in lost sales and disappointed customers during the peak shopping period.

BFCM Mistake #7 for Brands: Late Marketing Campaign Launches

Launching marketing campaigns too late can result in missed opportunities to build anticipation and attract customers. This mistake often stems from underestimating the time required for campaign preparation and execution. 

For instance, an electronics retailer might delay their email marketing campaign until the day before Black Friday, leaving insufficient time for customers to plan their purchases and potentially losing them to competitors who started promotions earlier.

BFCM Mistake #8 for Brands: Website Preparation Delays

Postponing website updates and performance optimizations can lead to technical issues during high-traffic periods. This includes neglecting to test the site's capacity, updating product pages, or streamlining the checkout process. 

An example would be an online beauty store that waits until the last minute to implement a new checkout system, only to discover on Black Friday that it can't handle the transaction surge. This results in lost sales and frustrated customers.

Solutions and Best Practices

Store owners learned tough lessons from past Black Friday failures. Traditional banks often deny funding right when online stores need it most. Savvy retailers now partner with working capital providers for ecommerce growth without requiring equity or collateral.

Planning Timeline

Successful stores begin Black Friday planning in July, knowing late starts killed profits in previous years. Marketing teams secure affordable ad spots early. Website developers find and fix problems during quiet months. Warehouse staff develop rapid shipping methods when pressure stays low. Monthly funding checkpoints ensure money flows when each team needs it most.

Funding Strategies

A strong BFCM performance depends on adequate capital access. Traditional bank financing is still an option, but their extended approval timelines and rigid requirements might not be suitable for holiday shoppers. Clearco's approach speeds up funding when traditional financing moves too slowly. Growth capital arrives based on store performance, not personal collateral. Flexible payment schedules match actual sales patterns. Store owners keep full ownership while accessing capital for peak season needs.

Inventory Management

Empty shelves taught stores the value of backup suppliers and careful stock tracking. Clearco's ecommerce funding helps stores secure inventory before prices rise. Computer systems alert managers long before items run low. Storage spaces expand gradually as delivery dates approach. Revenue-based financing means stores order confidently when suppliers offer early discounts.

Success Through Smart Planning and Fast Funding

Smart retailers captured significant portions of Black Friday's $9.8 billion sales in 2023. Early planning prevented warehouse chaos, marketing mishaps, and website crashes during peak shopping days. While traditional banks often deny funding before major sales events, Clearco offers quick capital for ecommerce growth. Ready for success? Sign up with Clearco today and get funding decisions in as little as 24 hours.

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Daniel Doan
I write high-converting marketing assets for Fortune 500 companies using behavioral psychology and cognitive neuroscience | 12+ Years Exp | Healthcare - IT - FinTech | @ HubSpot, Stanford Medicine

Daniel Doan is a conversion copywriting and content marketing expert who has crafted high-converting sales pages, emails, ads, and articles for over 224 of America's largest B2B companies and digital brands. His 12+ year expertise in bridging the communication gap between companies and their ideal customers has led him to develop a cutting-edge "Neuro-Response" framework that drives significant conversions. Additionally, he has authored comprehensive guides on the neuro-response process and shared his insights with global audiences as a public speaker. Building from his decade-long experience, Daniel's work has been widely recognized, establishing him as America's #1 most trusted conversion copywriter.