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Increased Holiday Sales Make Shipping and Fulfillment Critical

Author Cara Posey on 10/12/16 8:34 AM

Shipping during the 2016 Holiday Season is critical to fulfilling on the sales generated during October, November, and December. The National Retail Federation is expecting that in November and December alone, retail sales will increase 3.6%.

Even more importantly for Pacejet customers, online sales are expected to increase between 7 and 10 percent over last year to as much as $117 billion. Retailers will be hiring hundreds of thousands of seasonal workers, and many will be working in shipping and fulfillment. This means that your ERP and shipping platforms have to be ready with efficient tools that can help many users.

2015 Showed that Carrier Selection is Critical

In 2015, one in three people made over half their holiday shopping purchases online and more than half of people increased the amount of shopping they did online (2016 NRF Retail Holiday Planning Playbook.) Out of all these shoppers, 85% said their top concern was guaranteed on-time delivery. With 60% of retailers offering free shipping during the holidays, carrier selection becomes critical for Pacejet customers to reduce shipping costs that would otherwise eat into profit margins. Choosing the right carriers impacts the delivery times expected by the customers and the shipping costs, whether those are passed on to the customer or the retailer. This is why Pacejet offers integration with hundreds of shipping services so that our customers have more options. You can download the carrier list to learn more.

Shipping Considerations in 2016

UPS reports that retailers need to offer options that cater to the "I Want it Now" shoppers. 31% expect expedited shipping options at checkout. While arrival time is important, costs are also a concern. 46% abandoned a cart because the shipping time was too long or not provided. Two day delivery preference is up 20% in 2016, likely driven by the prevelance of Amazon Prime. While this is an important option, Economy Ground is still selected the majority of the time. The UPS study shows that customers expect multiple shipping options, which is another reason that Pacejet customers rely on a multi-carrier solution.

While the settings you have in Pacejet are important, make sure to also keep in mind how you are publically communicating with customers regarding shipping. One of the things to consider as you update your website and language around shipping offers: make sure you communicate clearly the holiday cut off dates. In order to meet customer expectations, make sure they know if you have specific dates set. This is likely dictated not only by carrier selection, but also on staffing and the number of orders you can get out the door each day. Another reason why Pacejet is an important tool to keep shipping moving efficiently, during the holidays and thoughout the year.

Interested in learning more about how Pacejet can transform your shipping?

Contact Pacejet

 

Image featured in content related the the post attributed to Christopher Amrich through Flickr Creative Commons

Topics: Holidays

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