As the holiday season progresses and the plethora of Christmas specials begin to hit your email inbox, a new report is estimating just how big this peak retail season of 2016 may be.
Adobe Digital Insights’ “2016 Digital Insights Shopping Predictions” report predicts that 57 of the 61 days in November and December will surpass $1 billion in online sales – including a streak of 53 consecutive days totaling over $1 billion in sales. In addition, the report states that overall online holiday sales will top $91.6 billion this year (an 11% increase) with Thanksgiving, Black Friday, and Cyber Monday counting for $8.4 billion of those sales alone, with each of those days expected to outperform their previous record shattering numbers of 2015.
While these predictions are sure to excite consumer and retailer alike, it should also spark some concern for those on both sides who are responsible for what happens once those online carts are emptied and credit card information is entered. Regardless of whether the buyer selects “next-day shipping," it is imperative that companies have their supply chain operations fully optimized and at prime performance levels if they want to keep up with what’s on deck for peak season.
Here are three key things companies can check up on to ensure their operations are in good standing:
Utilize real-time data and analysis
A top-tier supply chain management process is one that provides the most real-time visibility for its organization. Real-time data access is key to understanding the full scope of your supply chain operation so adjustments can be made on the fly.
Supply chains must be fully optimized and at prime performance levels if companies want to keep up with what’s on deck for peak season.
Michel da Silva
Director of Global E-Business, ModusLink
Whether its managing the amount of stock on hand to avoid a shortage, or monitoring the product assembly and packaging in the event of a sales surge, having this real-time data on hand is crucial to providing your team with the most up-to-date information if a decision must be made to keep up with consumer demand during those peak e-commerce sales days.
Define your aftersales strategy
As the volume of online retail sales continues to dramatically increase, the potential for an increase in returns is also highly likely.
Consumers are always looking for retailers to simplify their operations to better suit their needs, and returns are no exception. If a popular product is being returned in high quantity, there may be a widespread defect and the manufacturer will need to act fast to manage the influx of returned products while simultaneously issuing a stop sale.
Consumers are always looking for retailers to simplify their operations to better suit their needs, and returns are no exception.
Michel da Silva
Director of Global E-Business, ModusLink
Recently, many retailers are also offering “try before you buy”-type specials, allowing consumers to select products, have them shipped, pay for what they want and send the excess products back. These marketing strategies could create a major supply chain headache if this e-commerce merchandising play is not properly defined on the back end.
It is extremely important that the retailer understand exactly why the product is coming back to its warehouse (a simple “I didn’t like it” isn’t enough) for that data to be applied for future business practices. Proper payment practices must also be implemented so customers can pay the retailer and receive their proper refunds in a swift manner.
Organize your order fulfillment processes
In the e-commerce market, the speed of getting your product through the order process, down the supply chain and into the hands of your customer could be the only thing standing in the way of a sale. Next-day shipping has become the new normal and online retailers are doing their best to keep up with the craze.
Whether a company has an end-to-end supply chain operation that offers next-day or expedited shipping as an option or not, there are most likely several areas within the operation that could be improved to increase efficiency. Small things like shifting the layout of the warehouse or adjusting the accessibility of tools or materials will ultimately speed up the assembly and order times, making the seller even more competitive from the very second an online customer completes their order.
The e-commerce market shows no signs of slowing down – which means companies will need to pay close attention to keep up with their competition.
Michel da Silva
Director of Global E-Business, ModusLink
The e-commerce market shows no signs of slowing down – which means companies will need to pay close attention to keep up with their competition.
With consumers breaking their spending records every year online, e-commerce retailers need to continue to evolve their businesses based on consumer trends. By optimizing their supply chain practices per these trends, it could ultimately determine which companies will continue to grow with the e-commerce market and simultaneously improve their bottom line – and which ones will fall flat.
