Deep inventories pay off on Cyber Monday
November 30, 2010
The last weekend was big for Internet retailers and Cyber Monday was predicted to break records nationally.
Backcountry.com, Park City’s largest online retailer and one of the biggest in Utah, had its biggest sale day ever on Monday.
Dustin Robertson, Backcountry.com Chief Marketing Officer, said Black Friday was the company’s biggest percentage gain over last year, outperforming November 2009 by 43 percent.
All Internet sales nationally were up about 28 percent that day, he said.
Monday sales were only up 30 percent over last year, which trailed the national trend. But in dollar volume, it broke all existing sales records for the company, he said.
More good news for Backcountry.com is that Dec. 13 the last day for shipped items to arrive by Christmas is expected to be even bigger.
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The previous two years were hard and the economy is recovering slowly, Robertson conceded. Sales margins have been tight and sales growth has been slow.
What accounts for his company’s phenomenal success is a risk the company’s buyers took last January, he said.
Because the previous two years were so difficult, most retailers are still carrying shallow inventories only stocking what they know they can sell.
That means availability is limited. taking a risk and ordering more, Backcountry.com’s 11 websites have products not easily found elsewhere.
"This time of year everything is full price. People buy from us because we have it and the local shops don’t," he explained. "Our buyers placed a bet and it’s worked out great."
Internet sales have been strong across the board, he added. Big names like Amazon.com are doing so well "it will baffle you," he said.
According to data from Channel Advisor, Amazon almost doubled its sales from last year on Cyber Monday. Black Friday sales were up over 80 percent.
View Backcountry.com has best day ever in a larger map