Peak shopping periods can be lucrative, but you need a plan to cope and maintain shopper's experience.
According to Statista, in 2022, holiday online retail sales in the U.S. amounted to nearly $240 billion, with the most money spent on Cyber Monday.
In this year, Cyber Monday became the biggest online shopping day in U.S. history, with revenue figures hitting approximately $10.7 billion. In the five-day period from Thanksgiving Day to Cyber Monday, known as Cyber Five, online sales were projected to total about $37 billion U.S.
This trend is expected to continue in future holiday seasons, making it essential for online retailers to have a solid order fulfilment strategy in place to manage the increased demand and ensure timely delivery to customers.
While this shows how Christmas, and other peak shopping periods, can be the most lucrative, they can also be the most challenging, especially when it comes to order fulfilment.
Managing inventory, shipping, and delivery during the peak shopping season can be overwhelming and could potentially harm your business if not managed correctly.
So, we’ve pulled together a checklist to help online retailers plan, manage and thrive during peak shopping seasons.
Start planning early
To make sure a successful holiday season, start planning your inventory and fulfilment strategy early. Identify your best-selling products and ensure you have enough stock to meet demand. Conduct a demand forecast to ensure you have enough inventory to avoid stock-outs.
Partner with reliable carriers
Shipping and delivery are crucial components of the order fulfilment process. Therefore, partnering with reliable carriers such as Asendia is vital to ensure timely deliveries. Consider partnering with carriers that offer real-time tracking and have a good reputation for delivering packages on time.
Offer multiple shipping options
Customers expect flexibility when it comes to shipping options. So, offering multiple shipping options is an excellent way to cater to different customer preferences. Offer expedited shipping for customers who require fast delivery and standard shipping for those who are not in a hurry.
Optimize your packaging
Ensure your packaging is optimized for safe and efficient transportation. Choose durable and sturdy packaging materials that can withstand the shipping process. Optimize the size and weight of your packaging to reduce shipping costs.
Automate your order fulfilment process
Automating your order fulfilment process can save time and improve efficiency. Invest in software that automates order processing, inventory management, and shipping. Automation reduces the risk of errors and streamlines the fulfilment process.
Offer free shipping
Free shipping is an excellent way to attract and retain customers. According to a survey by NRF, 75% of consumers expect free shipping, and 68% will add more items to their cart to qualify for free shipping. Offer free shipping for orders above a certain amount to incentivize customers to purchase more.
Provide order tracking information
Customers want to know the status of their orders. Provide real-time tracking information to customers to keep them informed about their package's status. According to a survey by Narvar, 98% of customers want to receive shipping updates via email, and 83% want to receive updates via text message.
Manage returns efficiently
Returns are inevitable in the retail business. Managing returns efficiently can improve customer satisfaction and reduce operational costs. Create a clear and concise return policy and communicate it to customers. Offer easy and convenient return options to customers, such as pre-paid labels and drop-off points.
Train your staff
Your staff plays a crucial role in the order fulfilment process. Ensure your staff is adequately trained to handle peak shopping season demands. Train them on inventory management, order processing, and shipping procedures.
Monitor your metrics
Monitor your fulfilment metrics regularly to identify areas of improvement. Key metrics to monitor include order processing time, shipping time, and return rate. Use the data to identify areas of improvement and make necessary adjustments.
So, why is this important, aside from the reasons outlined already that will make a difference to your customers, here’s the reason why you need to make the most of the lucrative peak shopping season.
- In the 2021 holiday season, U.S. e-commerce sales reached $207 billion, a 10.9% increase from the previous year, according to Adobe Digital Economy Index
- eMarketer found that during the 2021 holiday season, online retailers experienced a 50% increase in website traffic, with 33% of shoppers reporting longer wait times than usual
- In 2021, BigCommerce discovered that 64% of consumers said they were more likely to purchase from a retailer with fast and free delivery options
- MetaPack also looked into the money to be made during peak shopping periods and found:
- such as Black Friday and Cyber Monday, delivery times can increase by up to 40%
- 70% of shoppers say that an estimated delivery date impacts their decision to purchase
- A delay in shipping can result in a 55% increase in the likelihood of a customer cancelling their order
Planning and preparation are clearly key to making the most of peak shopping periods, so you not only get a big boost to your income but also gather the data of a larger customer base to entice them back with future promotions with email or direct marketing campaigns.
Those repeat customers will also, should they have a good experience, also become loyal repeat customers, maximising your ROI and profit even further.
And it a good experience that is key, so to make sure they get their orders on time, before Christmas Day for example, you need to partner with Asendia to fulfil all your orders.
