Maximizing Your Small Business Profits During the Holiday Season

The holiday season is often hailed as the most wonderful time of the year, but for small businesses or e-commerce stores, it can also be the busiest and most challenging period. With Black Friday on 24th November and Christmas right around the corner, it's crucial to ensure your business finances are well-prepared to handle the upcoming surge in sales and heightened customer demand. This is particularly important if your business operates internationally, as being able to receive payments from a global customer base can significantly impact your profitability.

To assist small business owners in making the most out of the holiday season, Wise Business customers in the US who upgrade their account to ‘all features’ can receive payments in multiple currencies directly from popular e-commerce platforms like Amazon, Shopify, and Etsy. Read on to find out how to make the season less stressful and more profitable for your business.

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1. Setting Clear Goals and Objectives

The journey to holiday season success begins with early planning and goal-setting. By proactively strategizing for this busy time, you can maximise your profits and customer satisfaction. Take the opportunity to review past holiday season performances, pinpointing what worked and what didn't. Setting realistic sales targets based on these insights will serve as a blueprint for the months ahead. Further, consider how much revenue you want to generate during the busy season and define specific key performance indicators (KPIs) to measure success. For example: My business goal is to achieve a 30% increase in international sales compared to the previous year.

Tip: Break this goal down by region or country to understand which markets offer the most growth potential.

2. Stocking Up and Inventory Management:

Efficient inventory management is critical. To prepare for the increased demand, start by forecasting what products will be popular and ensure you have enough stock on hand. Optimising inventory turnover is equally important to reduce holding costs and keep cash flowing smoothly. Consider using the Just-In-Time inventory approach, only acquiring goods and materials that will be needed for the holiday season. This proactive approach to inventory management is a cornerstone of maximizing your small business profits during the holiday season. Establish good communication and payment terms with key suppliers in case you need to re-stock a particular item.

Tip: Implement a just-in-time inventory system and consider offering holiday-specific promotions to drive sales of slower-moving items.

Inventory Template

3. Website and Storefront Optimization:

Prepare your online store for the holiday season by ensuring mobile responsiveness and creating a user-friendly interface to offer a seamless shopping experience. Streamline the checkout process, update product details and prices, and feature holiday promotions prominently. Consider A/B testing to refine your website's design and content, and conduct load testing to handle high traffic volumes. Maintain responsive customer support channels to address inquiries promptly. These steps will optimise your digital storefront, maximise customer satisfaction, and boost holiday season profits.

Tip: Enable customers to pay in their local currency to eliminate confusion and uncertainty associated with foreign exchange rates, to build trust and reduce card abandonment.

4. Marketplace strategies and withdrawing money in multiple currencies

If your e-commerce business operates on multiple platforms such as Shopify, Amazon, and Etsy, it's essential to recognize that each platform has its unique audience, algorithms, and requirements. Optimising your product listings for each platform is key to reaching your target customers effectively. This entails tailoring your product titles, descriptions, and images to align with the platform's search algorithms and user expectations.

Tip: If you’re a US-based business selling on platforms such as Amazon, Shopify or Etsy, by upgrading your account to ‘all features’ you can receive your earnings in multiple currencies directly into your Wise Business account with no additional fees. This way, you’ll avoid paying the high currency conversion fees that some bank providers would charge you.

Once you have money in your Wise Business account you can hold it, spend it online or using your Wise Business debit card*, send it to someone else or switch to another supported currency using the mid-market exchange rate.

5. Marketing and Promotion Strategies

Tailor your marketing campaigns to cater to your international clients, taking into account different time zones and cultural differences. Use geo-targeted advertising to create tailored promotions based on customers' preferences and buying habits in each market. Capitalise on global holidays and events, recognizing regional variations. For instance, tailor your marketing campaigns for Black Friday or recognize the significance of Thanksgiving in the US and Canada. Adapt your approach to encompass diverse Christmas traditions like Hanukkah or Kwanzaa, as well as New Year's celebrations such as Chinese New Year or Lunar New Year

By understanding and respecting these cultural differences, your e-commerce business can better connect with international audiences, resulting in enhanced engagement and conversions.

Tip: Translate your product descriptions and marketing materials into the local languages of your target markets. Ensure accuracy and cultural sensitivity in translation to avoid misunderstandings. Different regions have varying preferences when it comes to social media platforms. Research which platforms are most popular in your target markets and prioritise your efforts accordingly. For instance, while Facebook and Instagram are widely used globally, platforms like WeChat, Line, or KakaoTalk may be more prominent in specific countries.

6. Cybersecurity and Fraud Prevention:

In the midst of the holiday season hustle and bustle, safeguarding your business profits from potential scams is very important. By proactively recognizing and mitigating common tactics and warning signs, you can shield your earnings from falling into the wrong hands. Educating your team on the nuances of fraud detection and prevention is a crucial step in fortifying your financial defences. We've compiled the ultimate guide here.

• Be cautious when dealing with new or unfamiliar lenders, and verify their legitimacy before engaging in financial transactions.
• Educate your staff on the importance of verifying the authenticity of payment requests and invoices to prevent fraudulent financial transactions.
• Stay updated on the latest scam trends and share this information with your team regularly.

To maximise your small business profits during the holiday season, take proactive steps like setting clear goals, optimising inventory, enhancing online presence, tailor strategies for different platforms, create culturally sensitive marketing campaigns, and bolster defences against fraud.

Take your business to new places with Wise Business:

• No monthly subscription international business account
• Multi-currency support: hold 40+ currencies, send payments to 160+ countries, and get local account details for 8+ currencies including GBP, EUR, USD, AUD.
• Low cost currency exchange: mid-market exchange rate with transparent fees
• Batch payments: pay up to 1,000 recipients at a time in multiple currencies with one spreadsheet
• Multi-user access: manage user permissions and choose from any of the 5 roles to manage what your team members can view, access, and manage
• Accounting integration: connect with Xero, QuickBooks, FreeAgent and more.
• Digital expense cards for you and your team: up to three digital cards per team member, available for sole traders/sole proprietorships with no shareholders/Ultimate Business Owners (UBOs), and for any business with only one shareholder, where the owner of the profile is the UBO.