Business Logistics for the 2022 Holiday Season: What You Need to Know
With September here, not only are kids back in school, but fall is just around the corner, and so are the holidays. With logistics, readiness is critical, as is prioritization, but there are ways to mitigate negative impacts and ensure shoppers receive the products when they want them, even though many companies have struggled to fulfill orders since early 2020. In this article, we’ll cover a few things to keep in mind when preparing for the 2022 holiday season.
Address Rising Carrier Costs
Due to the COVID-19 pandemic and the rise of inflation, carrier costs will continue to skyrocket. Experts predict that parcel shipping prices will increase up to 12% for international and cross-border shipping, with a 5% increase in parcel shipping prices within the country. Mitigating spending by consolidating existing locations and looking for other opportunities that don’t pass the cost onto the customer. By passing the cost on to the customer, you’re less likely to hit sales targets and have fewer positive customer experiences.
Communication With Customers is Key
To build trust with your customers and to set realistic expectations, all brands must focus on communicating their experiences as transparently as possible by providing reliable information concerning port delays, shipping delays, shortages in stock, and any additional fees. Not only can you send out emails to existing customers, but you can add a header that appears on every page so the customer will see the information. They might not be happy about delays, but at least they know about them and can plan accordingly.
Expand Sales Channels
It’s not always easy to expand into a new marketplace, but it will allow you to reach more customers. If you have a physical storefront, you can set up a method of paying online, offering in-store pickup, and providing your products on multiple platforms and channels.
Navigate Labor Shortages
The COVID-19 pandemic is partly to blame for the shortage of about 250,000 drivers in the United States; labor shortages also affect logistics in other countries. To account for labor shortages, consider consolidating inventory locations, investing in automation, changing partners, or even creating contingency plans to get around disruptions.
Optimize Fulfillment
Even though customers purchase their items online, brick-and-mortar locations still play a part in giving customers what they need. The option of buying online and picking up in the store has risen dramatically in popularity, and eMarketer stated that 18% of online orders for Cyber Monday in 2021 included curbside pickup.
Prepare For Early Holiday Shopping
You’re not the only one noticing the increased prices for shipping; so are your customers. They’re also aware that there might be shipping delays during the holidays, so to account for this, they’re likely to start holiday shopping earlier in the year. Not only do they do this to ensure that they have their desired item by the holidays, but they’re not paying extra once the holidays arrive.
How Can AFP Global Logistics Help?
AFP Global Logistics has been one of the premier logistics companies in the country for over 30 years. We pride ourselves on reliability and timeliness, and no job is too big or small for us to handle. Contact us to talk to the experts and learn more about how we can help you with your logistics goals.