November and December represent the year’s busiest months for the retail and eCommerce industry. With major shopping events like Click Frenzy, Black Friday, Cyber Monday and Boxing Day creeping up, retailers should be well-armed with the right strategy for the biggest shopping frenzy of the year.
Yet, according to Sendle data, 59% of SMBs plan for peak season only 1-2 months in advance. This is a tight window with little room for error, especially when faced with economic challenges like inflation and increased competition from global marketplaces like Shein and Temu.
Nine of the year’s biggest-selling days in eCommerce happen in Q4, so retailers in key gifting categories like clothing, secondhand and toys can expect shoppers to jump in early to secure bargains ahead of the festivities. But to truly make the most of the peak season, retailers need to do more than just react to surging shopper demand — they need to plan strategically and deliver a winning shopping experience that stands out from the rest.
Here are the critical strategies that every brand should be implementing this peak season.
Plan for high volumes and strong operational efficiency
Peak season isn’t just about sales, it’s also about logistics — even the best promotions won’t matter if orders can’t be fulfilled on time. Our data shows parcel volumes are expected to increase by up to 45% during November and December, compared to the months prior. Retailers need to lock in the best shipping deals as early as possible to manage costs and get the best possible deal.
When expecting higher volumes than usual, brands should be looking to streamline operations wherever possible and have the right systems in place that are set up for success. This could mean improving fulfilment processes, hiring seasonal staff, or partnering with third-party logistics vendors (like Shipstation) to handle the increased demand. Processing packaging satchels in bulk will help reduce costs too.
For example, our Ship & Save program is designed to put savings back into retailers’ pockets, with savings of up to 55% as a reward for loyalty. The more you ship, the more you save — meaning there are significant discounts available especially during high-volume sales events.
Another important consideration is delivery times as consumers expect quick order fulfilment and delivery. Reliable and fast shipping is often the key differentiator between a sales conversion and an abandoned cart. With shipping cut-off dates also looming, retailers should be transparent with clear communication on the dates to avoid disappointment.
Get creative with customer incentives
We all love a great deal. So, make your brand stand out from the competition by offering unique and creative incentives for spending with you. Free shipping, bundle discounts or loyalty rewards, can be a make-or-break decision for many Australian consumers.
Our data shows that over half (58%) of SMBs are planning to offer free shipping as a way to entice customers. Free shipping is a simple but effective strategy that’ll get you noticed by frugal shoppers and help drive sales conversions. For example, setting a minimum order value before offering free shipping, such as $100, can help offset costs while still appealing to bargain-hunting shoppers. But the incentives don’t need to stop there.
Value-added perks, such as free samples or eco-friendly packaging, can help retailers stand out. Using recycled materials for packaging or offering carbon-neutral delivery can boost brands’ appeal to environmentally-conscious consumers. For retailers the bottom line is important, but going green can cost less. Leveraging supplier partners who have sustainability baked in is a simple way to become more sustainable without having to make big (and expensive) changes.
Verdict: Don’t wait until it’s too late
November and December are the busiest time of the year for retailers. By anticipating high volumes, improving operational efficiencies and getting creative with customer incentives, retailers will reap the rewards of the online shopping season. This peak season, we’re encouraging everyone to prepare early to take advantage of the discounts available (consumers and businesses alike). Be kind to your delivery drivers who are on the front line and doing their best — rain, hail or shine — to ensure you and your customers receive their goods on time.
Laura Hill is managing director of Sendle.