Each year, the holiday season, especially between Thanksgiving and Christmas, is when Americans start shopping a lots. Sales are expected to increase by 25-30% on average compared to normal days. As an online retailer, it's important to start preparing now by stocking more products, ensuring sufficient inventory, and confirming that last-mile delivery is smooth. This will allow you to ensure timely delivery when customer demand increases.
How can you ensure smooth last-mile delivery?
In the U.S., last-mile deliveries are typically handled by shipping companies like UPS, FedEx, and USPS. During the holiday season, these companies increase staffing, but they often still struggle to keep up. Delays can occur from package pickups to deliveries to customers. This is a common issue during peak seasons. So what can you do to prepare?
Expand your shipping channels: If you're only using UPS, consider adding FedEx and USPS to diversify your shipping options and reduce risk.
Increase seasonal staffing: This will help maintain warehouse efficiency and prevent delays due to high order volumes. If the shipping company cannot pick up packages every day, having extra staff ensures that you can deliver packages directly to the shipping companies yourself.
Start holiday promotions early: If you have sufficient inventory, consider starting your holiday promotions early. This encourages customers to make purchases ahead of the holiday rush, helping you manage peak shipping volumes.
Offer expedited shipping options: Many customers want to receive their orders faster during this time. Offering expedited shipping options with an additional charge may be more efficient than relying solely on standard shipping. Also, clearly communicate estimated delivery times and potential delays on your website to manage customer expectations and avoid dissatisfaction.
Assess warehouse staffing levels: If you anticipate insufficient staff, consider partnering with third-party warehouses to store some of your inventory. This can help ensure timely shipments.
Extend customer service hours: If your website has customer service representatives, consider extending their hours. This ensures that customers can quickly contact your company with questions about their orders or delays due to peak season, improving satisfaction.
Partner with third-party logistics (3PL) companies: 3PLs can provide expert advice and handle more logistics challenges during peak seasons, helping to resolve issues quickly and saving your company on labor costs.
By preparing early, you’ll be better equipped to handle the holiday rush, increasing profits and improving customer satisfaction during peak season.
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