The holiday season is coming, and it should be a cause for celebration for online merchants, as long as they have a good shipping strategy. The holidays are famously the busiest time of the year for all types of retailers, many making 40% of their yearly revenue during the end of Q4. From Black Friday onward, a feeding frenzy of consumerism will commence but unlike previous years, there is a pandemic-shaped elephant in the room and we can’t precisely predict how it will affect retailers. The New York Times is warning of an impending ‘Shipageddon.’

Demands for products purchased online and shipped to the door has already exploded in 2020. This has left many shipping companies struggling to keep up with demand. The holidays will generate more interest in online shopping, not less. Who wants to fight their way through a crowded shopping mall in the current climate? It’s anticipated that brick-and-mortar retailers will see a drop in business of some 25% this winter.

This all leads to three very important questions.

1. How much demand will there be for e-commerce throughout November and December?

If the pandemic has already made online shopping as popular as during the holiday period, will demand increase even further in the last quarter of the year?

   2. Can delivery companies, including the traditional giants, keep up with this demand and ensure that deliveries are made in a timely manner?

UPS has already announced they will only collect a finite number of packages per day, leading to delays of 24 hours or longer.

3. Shipping rates are likely to increase over the holidays. Will it be the customers or merchants that need to carry the can for this?

How can you continue to compete with the likes of Amazon on price without significantly reducing your profit margins?

Perhaps unsurprisingly, FedEx has braced themselves for events to come. You don’t get to be the world’s largest delivery company without planning ahead of pain points and adverse conditions. They have drawn up some tips for a successful shipping strategy during the holidays in 2020. Let’s take a look at these, and provide some bite-sized, digestible advice to avoid a personal nightmare before Christmas for your business and your customers.

1.   Incentivize Early Shopping

Shopping habits are changing. More and more customers are waiting until the last possible moment to make holiday purchases, hoping to catch a late bargain. Do all you can to discourage this by communicating with your customers.

Explain the logistical constraints imposed on merchants by the current circumstances, by setting clear and defined shipping deadlines. This will help your customers understand that, in 2020, it is better to act with haste than leisure.

Black Friday and Cyber Monday are likely to see huge amounts of transactions for major online retailers. Turn this to your advantage by researching how your competitors are handling this period and matching – or even undercutting – them on price.

Limited time discounts are a great way to capture the attention of consumers and encourage them to shop early. If somebody can be tempted into placing an order in early November rather than mid-December, everybody will have a more relaxed time.

2.   Manage Your Inventory

The advice to stock up early does not just apply to consumers. As a retailer, you’ll also need to brace yourself for increased demand – and potential delivery delays.

This means that you’ll need to be vigilant about managing your inventory. The most important element here is the products that you sell. Be extremely clear if stocks of certain items are limited.

Do not make customers complete the checkout process and then contact them explaining that you’re out of stock. Sure, you could offer a refund, but you’re disappointing a customer – and you have robbed them of precious time that could have been spent shopping elsewhere.

Think about the elements of your packaging, too. Do you offer bespoke packaging during the holidays? If so, ensure that your suppliers have the capacity to meet demand. Make sure you have plenty of packing materials, such as tissue, polystyrene, or bubble wrap. Shop early and stock up on anything that is non-perishable to avoid a logistical problem at the worst possible time.

3.   Encourage Bulk Orders Shipping

It’s always advisable to tie in shipping promotions with multiple purchases or minimum spending limits. This will save you money on shipping, while also encouraging consumers to spend more on your site. If you can convince a consumer to do all their holiday shopping with you, you could turn a handsome profit. Have pop-ups suggesting additional items that “other customers bought” with the item they purchased, or to be more direct, suggest items for “the important people on their lives” with catchy phrases like “this would make a great gift for someone you love”.

Perhaps more importantly in the run-up to the holidays, is that multiple orders can be packed in the same box. This, in turn, means that you’ll only need to do one packing and delivery, greatly enhancing your chances of getting the items to their recipient in good time and at a lower cost to you.

4.   Be Vigilant about External Circumstances

The holidays are not a time to send out your packages, cross your fingers and hope for the best. You’ll need to be constantly vigilant about the world around you. There are countless external factors that may impact shipping times.

Consider the weather, for example. Winter can lead to some extreme and adverse conditions in certain parts of the country. Before making any promises to customers about delivery times, review weather conditions. If you have a customer in Colorado or Montana, snowstorms may delay deliveries further. You cannot control the weather, but you can control the reaction of a customer to a delayed delivery.

Ensure you get constant updates on the state of play with deliveries all over the country. Google Alerts is your friend here. This way, you can ensure that you can manage the expectations of your customers.

5.   Communicate Constantly

Many businesses are wary about sending too many communications to customers. It’s easy to gain a reputation as a marketing pest and to be banished to a consumer’s junk mail folder. We are living in unique times, though. This is the time to over-communicate, not keep a low profile.

Send a steady stream of emails, SMS messages, and social media communications to your customers. Ensure that they are can be no confusion or crossed wires. Keep customers updated every step of the way when they place an order. For example, if it’s an option, get in touch when…

• An order is received
• The shipping label has been created
• The package has left the fulfillment center
• When you have an expected delivery date
• Delivery is completed

Yes, that’s a lot of messages. Yes, you may annoy some customers. They’ll be more enraged by being kept in the dark though, especially if they fear a missed delivery of a critical gift. It’s better to leave no stone unturned in your quest to communicate. It’s certainly better than fielding constant phone calls from anxious customers seeking updates.

6.   Work with a Reliable and Flexible Fulfillment Center

Finally, unprecedented levels of demand require the services of a skilled, flexible fulfillment center. You need help from a business that has contracts with a wide range of different couriers; if your put all your eggs in one basket, you are jeopardizing your chances of getting all deliveries out on time.

A business like Ameriworld has a vast array of couriers on their books. This means that if UPS has reached the limit of their pickups for the day, the rest of the carriers that pick up daily at their location can potentially absorb your volume. Even the biggest names in the business will not be able to handle every demand thrown at this during the holiday season. Reinforcements will need to be called in.

2020 has been a challenging time for consumers and merchants alike, and we all deserve a little festive cheer to close out the year. With the appropriate planning, this remains possible. Follow our advice and you’ll be able to remain on top of your operational planning for the holiday season. For further information, or to inquire about ways that Ameriworld Fulfillment can support your business, don’t hesitate to reach out.