In this week's issue of Data Bytes we'll be looking at category seasonality. While many sellers know that there are drops and spikes in demand at certain times of year for their products, they may not have considered that those drops and spikes could be at different times elsewhere in the world. For a seller open to selling internationally, this could be a good way to keep sales up all year long.
Consider, for example, snow skis and related equipment. While in the U.S., demand for snow skis seems to concentrate around the Christmas holidays, demand is high and steady from November through March in the U.K. and in Germany, where skiers get a longer winter season. Down in Australia, snow skis and related equipment reach peak sales from June through August, and remains low for the rest of the year. A smart ski seller anywhere in the world would do well all year by focusing marketing efforts on a different region of the world each season. Alternatively, this seller could add water skis to his/her inventory and round out sales for the year in his home country.
We see similar trends in heavy clothing such as sweaters and overcoats. Women's sweaters, for example, see pretty low sales most of the year in comparison to the huge spike in December. There is another spike in February in the U.S., and then sales gradually sink back down to about 20 percent of the peak. While the pattern is similar in Australia, sweater sales peak in June. If you're a sweater seller, now would be a great time to ramp up your sales in the southern hemisphere.
Pool pumps and pool toys see spikes on the opposite ends of the year. In the U.S. they reach their peak each June, hitting a low of 10 percent of the high in December. In the U.K. and in Germany, August is the peak for pool toys. Last year in the U.K. there was a pretty big spike in April - to 80 percent of maximum sales (they must have had a warm front early in the year). In Australia these peak in November, although sales have been strong through late March of 2007. Apparently Australia is having an exceptionally warm summer.
While winter vs. summer items may seem obvious, another trend to take into consideration is that of the school year. In the U.S., school supplies like textbooks and calculators peak each August at 100 percent of maximum sales. We typically see another spike in January when kids go back to class after the holidays. Over the past two years this spike has gone up to about 65 percent of the maximum for calculators. In the U.K. we see less dramatic spikes - calculator sales are steadier during the rest of the year but the do peak in September. In Australia sales were pretty low throughout 2005 but have climbed steadily in 2006. Both years saw spikes in February.
Laptop computers, while typically see higher sales throughout the year, follow a similar trend. Peaks and valleys are tied to the school season in each country.
Of course, if changing your inventory or market with each season sounds like too much work, there are many items that don't see as much of that same seasonality. iPods, for example, have been pretty popular at all times over the past two years in all countries. However, they still peak in December here in the U.S. with the Christmas season, then seem to hover at around 40 percent of maximum sales all year round. In Germany, the trend is similar although sales remain at a consistent 60 percent of maximum most of the year. In Australia, demand for iPods has been steadily increasing over the past two years. They also show a spike in December, but this past August, sales were at the same level they were in December 2005. Judging from the past two years, this may be the big year for iPod sales in Australia (hint: video iPods are growing fastest).
So whether you're a seasonal seller or sell the same items all year round, you'd do well to open up your sales to buyers in other countries. You can always start small by adding a small amount of inventory to another country's site. Test it out and go from there.
Please send questions, feedback or article suggestions to databytes@auctionbytes.com.
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