Vic Ricci, Senior VP of Operations, Dotcom Distribution
During busy holiday shopping seasons, brands face a difficult catch-22. Despite increases to order volume, consumers still expect their purchases to be delivered with accuracy and speed. This means that even the most established brands have to rethink their logistical practices.
To avoid any holiday shipping disasters, brands have to prepare for the shopping rush. Companies that do not fully anticipate the holidays jeopardize their business health and bottom line. When consumers are dissatisfied with shipping practices, brands also risk losing long-term loyalty and future recommendations. A disenchanted customer is a threat to any brand, especially during the holiday seasons.
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Between November and January, retail holiday sales are expected to trend toward $1 trillion. Brands cannot afford to displease consumers contributing to this pool, and preparation is the best way that brands can guarantee proper execution of ordering and shipping. This holiday season, give these three tips a try:
1. Forecast Holiday Shopping
To prepare for the holidays, e-Commerce retailers can forecast what the coming months will require. Although it’s likely that these predictions will change, steps can be taken to abet typical seasonal stresses.
For example, retailers can align important sales and product launches with spikes in the holiday calendar to balance how order volume increases. Even something as simple as when a holiday falls can help retailers forecast. If Christmas is on a weekend or if there are fewer days between two holidays, retailers can predict when consumers will shop.
E-Commerce retailers should also leverage past sales data to predict peak sales opportunities, popular holiday items and probable trouble spots. In terms of supply chain management, insights from previous sales cycles can help retailers better control shipments and SKUs next year. Retailers have to be able to understand their inventory flow in conjunction with sales data to avoid increasing costs or losing customers.
2. Place Value on Long-Term Customer Relationships
Another great way to avoid holiday shopping disasters is to communicate with your customers to build trust. When things get rough, consumers need to be able to rely on retailers to deliver.
During the holidays, consumers are monitoring multiple orders. Retailers can help shoppers by directly communicating their specific order status throughout the entire delivery process. There are many channels available for communication, and every interaction helps retailers manage customer expectations. Communication can also cultivate long-term trust and brand loyalty to extend customer relationships beyond the holidays.
Even if a shipment is running late – as can easily happen during the holidays – retailers are responsible for letting shoppers know. While consumers may exhibit initial frustrations, in the long run they will appreciate the heads up that allows them to readjust their schedules and purchases.
3. Ask An Expert for Help
Sometimes, retailers will not be able to survive the busy holiday season alone. During periods of struggle, an expert third-party logistics provider can help retailers with their operations and order fulfillment.
The best third-party logistics providers already know how to navigate holiday stresses. In addition to knowledge about shipping and inventory, these companies will also have an existing network of shipping carriers and technology providers that retailers can use. When a retailer’s focus shifts away from distribution, it can give more attention to nurturing customer relationships and making strategic business decisions. Retailers can begin working with a distribution partner leading up to the holidays to ensure that customers remain happy during peak seasons.
No matter the holiday, peak purchasing seasons are a time for retailers to prove themselves and earn life-long customers. The next round of holidays is fast approaching, and retailers should start preparing now to avoid disasters. All companies can benefit from forecasting and improved communication, and partnering with an expert distribution provider that has experience in this area can help them achieve both of these objectives.
Vic Ricci is Dotcom Distribution’s senior vice president of operations. Vic is a senior leader with over 25 years of progressive experience in the strategic management of organizations, the operational infrastructure to support these strategies, and devising the necessary supply chain efficiencies to provide the highest service levels at the lowest cost.
