Autumn has only just begun, but it is already time to look ahead to the busy month of December. The holidays guarantee one thing for online stores: peak traffic. This can cause a spike in your profits, but also logistical problems. How do you make sure your webshop keeps running smoothly?
Black Friday and the holidays are the busiest time of the year for almost every online store. The large peak in orders can cause considerable logistical challenges: will it be possible to deliver all the packages on time and will the stock remain at the right level? Not to mention the return flow that starts up after the holidays.
Michel Clausing of DHL eCommerce sees in the daily business that web stores of all shapes and sizes struggle with this. From the largest web giants with tens of thousands of packages, to the smaller entrepreneurs who ship from their shed. “Order volumes are simply thirty to fifty percent higher than the rest of the year,” he says. So he advises business owners and logistics departments to start preparing for the holidays in August and September. He provides five best practices from the field.
Tip 1: Analyze your numbers
According to Clausing, the first step in your preparation starts with your numbers from the past year. What did the peak around Black Friday, St. Nicholas and Christmas look like? What agreements did you make with carriers about package numbers at that time, and did you come out with these? In addition, you can also take a closer look at the past six months. Perhaps certain trends can be discovered, or certain products sell better or less well than in previous years. These insights not only help you to be better prepared, but also to optimize your marketing strategies and purchasing decisions.
Tip 2: Plan timely with your carriers and logistics partners
Logistics is one of the biggest bottlenecks during the holiday season. Without proper arrangements with your carriers, your packages may arrive late. This is a big problem especially for St. Nicholas and Christmas presents. Clausing warns that companies often start making these arrangements too late: ''We as DHL start talking to our biggest customers as early as June about their expected volumes. This gives us a chance to prepare logistics and manage peaks so that packages arrive on time.“As a small or medium-sized webshop, it's just as important to have a timely conversation with your logistics partners. This way they know better what you need during this period, and they can tell you what is possible.
Tip 3: Spread the rush as much as possible
The biggest issue of the busy December period is that customers order en masse on the same day. “For example, we recommend making Black Friday an entire week,” Clausing says. This can help reduce peak times and allows both you and your carrier to handle the pressure better. In addition, you give your customers the opportunity to take advantage of discounts at different times.
For example, to spread the rush for St. Nicholas and Christmas, you can email your customers as early as November with the tip to do their shopping in time for the holidays. That way they can be sure to get their gifts on time.
Tip 4: Ensure optimal ordering process and inventory management
Nothing is more frustrating for a customer than a slow or non-functioning website during the checkout process. So make sure your payment systems are up to date and functioning without any problems. The last thing you want is for customers to drop out because they encounter technical glitches during the payment process. ,,Also make sure your texts and photos are in order. If the color isn't right after the holidays, for example, you'll see a huge flow of returns,” Clausing says.
Also keep an eye on your inventory management. Clausing emphasizes that products coming from Asia, for example, have a delivery time of six to eight weeks: “It's important to have your cash flow and storage in order. If you start buying too late, you run the risk of not having enough stock in time. Of course, you also need to have enough space to store your inventory.”
Tip 5: Communicate clearly with your customers
Holidays come with tight deadlines: customers want to make sure their gifts arrive on time. So expectation management is crucial. Clausing explains: ,,You have to inform customers clearly and timely about delivery times. Don't promise anything you can't deliver.” He explains that it is better to inform customers in advance that delivery times may be a little longer during the holidays than to disappoint them later.
For example, it may be a good idea to indicate that you can only guarantee that the customer will receive a package for St. Nicholas or Christmas if they order by a certain date. ,,Also give your customer the option to choose pickup points or lockers. This way you help your carrier deliver everything on time.”
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Source: De Ondernemer
Picture: Michel Clausing CCO DHL eCommerce Benelux by Arie Kieviet