The 4th quarter of 2024 is on our doorstep which means it’s time to prepare your business for success during the busy holiday shopping season. Businesses typically earn a significant portion of their revenue during the holiday season, up to 20% or more, according to the National Retail Federation. For e-commerce businesses, opportunities to earn revenue at this time abound. In 2023, U.S. holiday season online sales reached almost $254 billion. With this in mind, it’s clear that careful preparation for the holiday rush is essential for the success of e-commerce businesses.
Prepping for a successful holiday season includes creating a plan for efficient shipping of your products to your customers. Timely and reliable delivery is critical to maintaining competitiveness and customer satisfaction. Obstacles are bound to arise such as weather-related delays, shipping carrier overload and last-minute shifts in demand. Will your business be ready? Here are four tips to prepare for a prosperous season.
Assess and Adjust Your Inventory Now
Is your inventory ready to meet increased demand for products sold online? Take stock of your inventory now to become aware of what you are prepared to ship. Then use your historical sales data or market trends to estimate holiday demand this year and plan to update your inventory. Your work will help you avoid under or over stocking, which can cause missed sales or excess inventory.
There’s nothing more frustrating than seeing a surge in demand for your products and being unable to fulfill orders. If you are selling popular or limited-edition items it’s important to check with your suppliers to ensure they will be ready to meet increased demand this holiday season.
Review and Update Your Shipping Policies
Free shipping and fast shipping are the top influences in 1 in 5 holiday purchase decisions. Since shipping holds so much weight in a customer’s decision to purchase an item online, your business needs to prepare clear holiday shipping policies now. Publish clear shipping cut-off dates for standard, expedited and international shipping. Clear communication is an important element in meeting customer expectations. If you can offer free shipping, announce this well ahead of the holiday rush to capture sales from customers shopping early in the season.
Implement Efficient Order Management
Four elements of a user-friendly system include a clear returns policy, an extended holiday return window, flexible return options and fast refunds. It’s no secret that customers like easy purchases and easy returns. Automating your sales process will help you more efficiently handle the surge in demand. Automation can save you 2 hours and 15 minutes daily according to one study and reduces the chance for errors. E-commerce businesses can leverage automation software to expedite order management, track inventory or generate shipping labels.
In addition to getting your product to your customer quickly it’s critical to offer an efficient returns process. A user-friendly returns system can increase customer confidence in your business and result in repeat sales.
Prepare for Shipping Delays
We would all like to rest in the thought that shipping carriers will be able to deliver products without delay every time but this is wishful thinking. Major carriers like UPS, FedEx, and USPS often face delays during the holidays due to strains during peaks in demand. On top of labor shortages carriers are faced with harsh winter weather in many parts of the US and carrier capacity limits. Get ahead of unexpected delays by shipping early when possible and provide clear communication that potential delays are beyond your control.
As an e-commerce business, your message to your customers is powerful. Set their expectations upfront about delays that may occur. When possible, offer expedited shipping options as a free or discounted upgrade. Reduce the possibility of peak season delays by shipping early. If delays arise make sure you have a responsive customer service team that can personally communicate with your customers.
Customers are ready to start shopping for the 2024 holiday season. Are you ready to ship?
The time to prepare for a successful holiday season is now. Last year 41% of consumers planned to begin their holiday shopping before November according to a Gallup poll. Successfully shipping your products to your consumers starts with careful preparation of your policies and systems to meet the surge in demand during this critical season. Any ecommerce business can say they “plan to have a great holiday season” but they are unlikely to experience this imagined success without planning for seasonal changes.
Get a Supply Chain Checkup
If you’re unsure how strong your systems will stand up to the coming surge in orders contact Sweetwater Logistics for a complimentary supply chain checkup. This multi-point checkup audits four areas of your business including operations and shipping, sales and marketing, vendors, and storage. Use this checkup to identify areas for improvement and leverage best practices to maximize your holiday sales.
