Jimmy Kim explains why the week after Christmas is gold for online stores. Between December 26 and January 5, shoppers get store-credit refunds they treat like found money and spend impulsively. Brands that issue credit instead of cash refunds and push targeted emails can capture a surge in sales most competitors ignore.
The 3 big reasons that Q5 works so well is quite simply, A, returns, B, gift cards, and C, self-gifting. It is that simple.
Yeah. Okay. Okay. Let's, let's break these down. So first, returns. By December 26th, people are already returning stuff, a sweater that didn't fit, a gadget that they didn't already have, or some questionable gift that Aunt Susan gave them, right?
Yes, that's right. And when they do return something, They don't just take the cash and leave. Most often retailers give store credit or process refunds that land in, let's call it, 3 to 5 days. So that kind of December 26th to that, let's call it January 5th window. Dude, so many people, right? Millions and millions of people have fresh credit burning a hole in their pocket. And here's the key. You know, this return credit has really kind of a high propensity kind of to spend. More so than like actual regular money, right? It's AKA found money. I don't know if you know that whole thing, like the girl math thing. Yeah, exactly. You know, people treat it differently. They're more likely to impulse buy or treat themselves during this specific time.
Which is perfect for e-commerce brands. If your return policy gives store credit, those people are coming back. If you sell on the marketplace, people are returning stuff and then buying from you with that credit.
Yeah, you know you gotta send it so you can learn a lesson from retention marketing to email and text message.
