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Holiday Headaches? Retailers Must Prepare for 2021 Peak Season Challenges

While it’s the most wonderful time of the year for many, the holiday season can be stressful for the retail industry. Soaring e-commerce growth over the last 18 months has kept retailers on their toes, especially as they scramble to prepare for the added challenges of peak season 2021.

As Digital Commerce 360 reports, “2020’s peak holiday season was a peak on top of a peak” with U.S. shoppers spending $201.32 billion online during the season, up 45.2% from $138.65 billion in 2019. Remarkably, the pace of e-commerce sales has barely let up since last holiday season; meanwhile, retailers have had to contend with additional challenges driven by the ongoing pandemic, including periodic manufacturing shutdowns, transportation backlogs, and labor shortages that have disrupted supply chains for months, as Digital Commerce 360 points out.

Once again, retailers face a heavily strained supply chain this peak season, with online purchases outpacing resources required to meet the increased demand, leading to probable shipping delays on top of the reality of limited personnel, containers, and in some cases products. Retailers will have to get creative to safeguard against rising carrier rates and reduced capacity while finding ways to improve the way they fulfill e-commerce orders.

Free White Paper - Simplifying Multi-Carrier Parcel Management for Peak Season and Beyond

To minimize shipping and fulfillment headaches heading into peak season 2021, retailers should already be preparing by implementing the right mix of shipping and omnichannel strategies, including Buy Online, Pick-up In Store (BOPIS), ship-from-store, and on-demand delivery.

Developing an omnichannel distribution strategy that includes e-commerce, in-store pickup, ship from store, etc. and utilizes advanced cloud-based multi-carrier shipping systems positions retailers for success in the face of mounting challenges by providing them with greater flexibility to achieve cost savings while improving customer service and fulfillment.

Having the right technology to execute various fulfillment scenarios will improve customer satisfaction and enable retailers to better respond to peak season demand.

Contact Logistyx today to learn how you can ensure smooth parcel shipping this peak season and beyond.