The holiday season is one of the busiest times for any eCommerce business. Salesforce research shows that global holiday season revenue reached $1.17 trillion in 2023. This illustrates the huge number of orders shippers had to handle during peak season.
Stakes are high. Any delay or disruption can seriously impact customer satisfaction and sales during the busy period. So how can you manage this hectic period efficiently? A solid fulfillment strategy is your best friend.
The influx of shoppers and last-minute orders can strain any logistics system, complicating tasks like picking, packing, delivering, and stocking popular items reasonably (i.e. without overstocking). The increased demand also stresses the workforce, raising the likelihood of mistakes and making efficient operations challenging to maintain.
There’s long been a need for a well-planned fulfillment strategy to navigate the hectic period effectively. When it comes to this, all elements – from optimizing your warehouse operations to ensuring swift and accurate deliveries – play a critical role in delivering a great customer experience. To help you prepare, we’ve outlined several effective fulfillment tips to follow.
1. Forecast demand and plan inventory
The unpredictability of the holiday season lies in sudden spikes of purchases that are hard to forecast (especially with the rise of social commerce), and supplier delays that can slow restocking efforts. Yet, still, at most accurate demand forecasting is something retailers should consider, including both: clear understanding of what customers will want (what products are in priority), and the availability of critical supplies like packing materials, wrapping material, shipping labels, etc. Facing each of these issues, you risk either running out of stock or overstocking items or face last-minute panic due to lack of essentials.
Managing increased order volumes also requires planning for additional staffing to handle warehousing, packing, and customer service roles – which leads to additional expenses. For example, in the final quarter of 2024, retailers are expected to add 520,000 new jobs.
2. Optimize your warehouse and enhance fulfillment process
Around this time of year, many eCommerce businesses increase their inventory at least times. That’s a lot of pressure on your warehouse. If all operations in your (or your fulfillment partner’s) warehouse operations like picking, packing, storage, labeling and other, are optimized and automated (preferably) – your chances of handling the increased volume of orders during the holiday season increase significantly. An optimized and well-organized warehouse also means that the probability of errors is eliminated (or at least decreased), contributing to your order fulfillment speed and the possibility of returns caused by inaccurately fulfilled orders.
To make this more clear, below are the list of some best practices we at ShipTop adhere to make our warehouses holiday season ready:
- We stress automation in our fulfillment operations both in routine tasks (picking, packing, searching for items etc.) and warehouse data flow at most levels.
- We have established a well-designed shipping workflow to handle large volumes of orders quickly and efficiently.
- We always keep in touch with our partners on demand forecasts to make sure that top-selling items are positioned in easily accessible areas to speed up the picking process. (Through the ShipTop platform, we get updates or last-minute changes in real time.)
- Both our staff and warehouses are equipped with the latest technologies (barcode scanners, mobile devices, etc.) for faster and more accurate picking and packing.
- We use the ShipTop platform to manage orders and inventory levels in real time, reducing the risk of stockouts and overstocking.
- ShipTop platform is integrated with various eCommerce platforms and marketplaces for seamless data flow and order coordination.
- Finally, we ensure that all our staff receive proper training to maintain a high level of efficiency and accuracy.
Need help with your eCommerce fulfillment during the holiday rush? Consider best practices from ShipTop – leading eCommerce fulfillment provider.
3. Introduce an attractive custom holiday packaging
Attractive packaging is something retailers definitely never miss on, especially during holiday season, where chances of getting into people’s feeds with your festive box are even higher.
When keeping this in mind during fulfillment, there are countless options to make the unboxing experience unforgettable for your customers. Even when you outsource fulfillment to a 3PL partner, you can get in touch and coordinate on the usage of custom printed boxes, themed wrapping paper, branded tape, custom inserts, and ribbons, or engage eco-friendly materials to appeal to environmentally conscious shoppers. These thoughtful touches will surely enhance the festive vibe for your customer and increase the chance of seeing your product in online unboxing videos.
4. Integrate marketing into your fulfillment strategy
This tip may remind you somewhat of the previous one, but beyond packaging, the right fulfillment offers many ways to maximize your marketing impact during the holiday season. Festive packages containing product samples, QR codes or discount coupons can encourage repeat purchases and introduce your customers to new seasonal products.
Our partner Grace & Stella reinforces this point, highlighting how during our collaboration, ShipTop’s distribution of hundreds of product samples supported their marketing efforts and strengthened customer relationships.
5. Omnichannel fulfillment
It is not a secret that modern customers are not tied to just one buying channel, preferring fluid experience between in-store experiences, eCommerce platforms, and even in-social media buying. Retailers, in their turn, simply require the same level of flexibility when it comes to fulfilling products, especially during the holiday season when both stakes and number of inventory are high. Omnichannel simply allows them to manage the increasing number of orders across various channels (physical stores, Amazon, Etsy, TikTok Shop), having a unified look of it across all locations in real-time. What gives? For example, if a popular toy runs out of stock in one location, the fulfillment system with omnichannel capabilities can redirect the order to be fulfilled from another store or warehouse. This not only speeds up the shipping process but also helps in managing returns more effectively, which is particularly crucial when dealing with post-holiday returns.
6. Improve your shipping strategy
The holiday season is also a season of gifts, meaning customers expect special precision and speed when it comes to order delivery. But according to Forbes, eCommerce sales are expected to grow 8.8% in 2024. These retail numbers put increased pressure on couriers that are also under pressure during the holiday season. This, in turn, applies to all the others who are engaged in the pre-holiday hectics, so that everyone’s schedules need to be locked in precise harmony.
However, despite many concerns among retailers and consumers, FedEx had a 98.3% on-time delivery rate during the 2023 holiday season, meaning that the partnership with the major carriers and couriers can be fundamental for your fulfillment strategy this holiday season. Another factor is 3PLs: a report by Inbound Logistics revealed that 3PLs can secure shipping rates up to 30% lower than what an individual retailer can negotiate, meaning the holiday season can pass without sacrificing a considerable proportion of the several months’ revenue.
And that doesn’t mean sacrificing the quality, either, since same day delivery is an option with the more tech-savvy 3PLs. That’s essentially why ShipTop offers a wide range of fast and reliable shipping options through partnerships with respected carriers and couriers like UPS, Canada Post, USPS, FedEx, and DHL.
7. Consider a reliable 3PL to survive the holiday season
After we discussed many crucial aspects of holiday fulfillment, we’ve finally reached the point where it’s legitimate to say that managing this all alone might be challenging for many businesses, especially small and midsize merchants. Without adequate resources and infrastructure (having enough staff, efficient order and inventory management system, and physical storage space to meet the increased demand), the sheer volume of orders can overwhelm your business, leading to delays, mistakes, and subsequently a sheer number or returns. And we also remember that coordinating shipments, managing returns, and handling customer service inquiries about shipping can quickly become unmanageable.
In this scenario, partnering with a 3PL helps in achieving cost-effective fulfillment with no extra resources, as it eliminates the need for businesses to invest in warehousing, staffing, and shipping. Furthermore, a technology-focused 3PL provider uses advanced technology and optimized processes to guarantee fast, accurate deliveries.
Why ShipTop for Holiday Fulfillment?
At ShipTop, we know very well the pressures of the holiday season in eCommerce. Considering the increasing complexity and volume of orders, we may recommend to choose a digitally-enabled fulfillment partner that facilitates the process and minimizes human error with the right technology.
ShipTop’s digital platform simplifies multichannel order and inventory management, providing real-time inventory levels and the latest reports to keep your fulfillment organized.
Our partnership with trusted carriers such as UPS, Canada Post, USPS, and FedEx, provides you with more affordable shipping rates (ShipTop secures shipping rates up to 30% lower than what an individual retailer can negotiate) and guarantees your customers receive their orders quickly (same or 2-day) and in perfect condition.
Also, since unique packaging can make your orders stand out and create a memorable experience for customers, we offer custom packaging and branding solutions (custom boxes, bags, and tapes) for your apparel brand, enhancing the unboxing experience for your customers.
Do you also need help managing high volumes and scaling your business during peak seasons? Partner with ShipTop and experience seamless, reliable fulfillment.
