Retailers face significant challenges during peak shopping periods, and according to Lee Thompson, CEO of fulfilmentcrowd, which offers fulfilment services and technology, the pressure can either make or break a company’s year.
“Peak season can make or break your year, and since retailers have started to launch their campaigns early, it has become a customer expectation,” Thompson explains.
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With Black Friday 2024 on the horizon, many businesses may already be feeling the heat of rising costs and missed sales opportunities.
Retailers often experience a range of pain points during these crucial months, with missed service level agreements (SLAs), lost parcels, and operational inefficiencies being some of the most common issues. “Many businesses can feel dissatisfied with rising costs, negative customer feedback, or missed sales opportunities during peak season,” Thompson notes.
These challenges, if not addressed, can lead to a stressful experience for teams and damage the confidence customers have in brands.
Key pain points for retailers during peak season
Thompson highlights eight primary pain points that retailers face:
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By GlobalData- Missed SLAs: Late deliveries can lead to unsatisfied customers.
- Spike in lost parcels: Increased loss of parcels creates trust issues with customers and additional costs for replacements.
- Customer service overload: Higher customer service demand as customers chase delayed or lost orders.
- Missed sales: Inefficient operations can prevent retailers from capitalising on peak demand.
- Rising operational costs: Delays and errors result in unpredictable and rising costs.
- Stressful peak: Emotional strain on teams as they try to manage the influx of orders.
- Damaged brand confidence: Negative customer feedback can damage a brand’s reputation.
- Missed opportunities: Underperforming during the busiest time of the year can be a missed chance for growth.
According to Thompson, one of the worst mistakes retailers can make is failing to switch fulfilment providers when these issues arise. “Switching fulfilment providers mid-peak can feel like a daunting prospect, but a bad peak can do more damage for your brand than good,” he says.
Retailers should seek providers that can handle order surges, offer cutting-edge technology, and provide fast and seamless onboarding to minimise disruption.
Importance of scalable fulfilment during peak
Thompson also emphasises the critical need for scalable fulfilment infrastructure during peak seasons.
“During peak season, having a scalable fulfilment infrastructure is crucial. You should ensure that your warehouses, technology, and workforce can handle increased order volumes efficiently,” he advises. This ensures orders are delivered on time and customer satisfaction remains high.
Real-time tracking, hassle-free returns, and personalised offers will be key differentiators for retailers this season.
As Thompson notes, “Post-purchase experience plays a critical role during peak seasons. Consumers expect more than just a delivery; they expect a seamless experience, with real-time updates and the ability to return items easily.”
Adapting to changing consumer behaviour
The consumer landscape during Black Friday and other peak shopping periods continues to evolve. fulfilmentcrowd’s data from Black Friday 2023 revealed a strong shift in purchasing behaviour, particularly in beauty and cosmetics, which saw a 68% increase in like-for-like sales.
The trend reinforced the ‘lipstick effect’, with consumers indulging in smaller luxury items while avoiding larger purchases.
To succeed during the upcoming peak season, Thompson advises businesses to prepare thoroughly. “Be prepared for surges in demand and ensure your technology can handle the spike in orders to avoid delays or outages during peak trading,” he says.
As the retail world moves into Black Friday 2024, retailers must be ready to navigate the many challenges that come with peak season, ensuring their fulfilment processes are robust enough to meet customer expectations.
