The Trap of Deferred Demand: Sales Have Been Found to be Harmful to Stores Themselves, Study Shows

A study by Flywheel has found that sales can be harmful to stores themselves, despite the initial surge in turnover and record orders. On November 11, sales increased by 15-20% compared to the same period last year, but the average order value decreased by 8-10%, indicating that buyers are taking advantage of discounts rather than buying more.

This phenomenon has significant implications for social commerce, as it suggests that stores are not able to retain customers after sales and are instead losing money on discounts. The low conversion rate of buyers into regular customers, ranging from 5-10%, further emphasizes the need for stores to rethink their sales strategies and focus on building long-term customer relationships.