Starting with Black Friday, the holiday peak season is the most rewarding, but also the most challenging time of the year for online retailers. During this time, the pressure on fulfillment operations increases significantly, as customers continue to expect fast and flawless deliveries despite the increasing volume of parcels. Any delay can negatively affect a company’s image. We have put together ten tips to help online retailers prepare for the upcoming challenges.
1. Make accurate forecasts
Accurate forecasts are crucial to successfully managing demand spikes during the peak season. Retailers should plan in detail all marketing and sales campaigns and the calculated sales volumes as well as the impact of newly introduced products. Historical data combined with AI-based algorithms can help predict sales and optimize the fulfillment forecast.
2. Scale strategically
Retailers should ensure that additional storage space is available in time to avoid bottlenecks. Flexible solutions such as temporary additional warehouse space or a partnership with a fulfillment service providers can be crucial during peak periods.
3. Hire and train staff early on
Timely recruitment and training of seasonal staff can make the difference between success and failure. A mentoring program, in which experienced employees train new staff, will speed up onboarding and foster teamwork.
4. Strengthen supplier relationships
Close communication with your own suppliers ensures that they can actually meet the expected demand. Cross-docking options, where products are sent directly from a supplier or manufacturer to the customer without being stored, are one way to shorten delivery times for items in high demand.
5. Offer multiple shipping options
Flexibility in shipping options is important to meet customer needs. During peak season, it is even more crucial that the (external) fulfillment operations have contracts with multiple last-mile carriers. This way, when a carrier has difficulty keeping up with the peak season load, there is a plan B.
6. Manage customer expectations through transparency
Transparent communication is essential to ensure customer satisfaction during peak season. Especially in the run-up to Christmas, it is important that delivery time estimates at checkout are as accurate as possible. A proactive approach not only sets realistic expectations for customers, but also reduces the number of customer service inquiries regarding order status.
7. Proactively communicate possible delays
With the help of shipping intelligence software, individual shipments can be monitored and controlled. This way retailers can inform their customers about delays in advance, significantly reducing frustration and improving the overall customer experience.
8. Develop contingency plans
Detailed contingency plans should be prepared for unforeseen events such as system failures, shipping delays or staff shortages. A specially assembled emergency team can then react quickly to unexpected problems.
9. Increase employee motivation and accuracy in the warehouse
Incentives can boost employee motivation and efficiency in stressful times. Rewarding the achievement of a certain error-free and delay-free service level with bonuses not only improves performance but also promotes a focus on quality and timely processing, which is crucial during seasonal peaks.
10. Optimize packaging with AI (long-term goal)
While it may be difficult to fully implement AI-powered packaging optimization for the upcoming holiday season, it is a worthwhile long-term goal. With the help of AI, the optimal package size for each order can be determined, which can significantly reduce shipping costs and promote sustainability.
Jeroen Leenders, Co-Founder of Salesupply, says: “The holiday season offers both opportunities and challenges. With the right preparation, however, online retailers can welcome a large part of the holiday shoppers back in the near future.”
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