5 Tips To Get Your E-commerce Logistics Ready For The Peak Season

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E-commerce is a lucrative domain with high revenue and profit opportunities. According to US government statistics, e-commerce sales accounted for 14.6 percent of total sales in 2022.

Another study indicates that the country has 218.8 million online shoppers, and they spend an average of $5,381 per person in 2023. The numbers show how big the industry is.

The peak season is a booming phase, but you cannot overlook the challenges that abound during it.

Logistical issues are perhaps the hardest to deal with as you may struggle to keep pace with the high order volume and ensure they reach customers in time.

Logistics providers are flooded with work, and issues like returns complicate the situation further.

As a seller, you must find a way to ensure the best shopping experiences for your customers. American shoppers have high expectations when it comes to shipping.

They expect free shipping with no minimum order value, discounts on total purchases, on-time delivery, and free returns. 

Matching these expectations can get tougher when the traffic is heavy during the peak season.

Fortunately, taking a few measures beforehand can help you get through the phase and foster customer satisfaction and brand image. 

Let us share a few actionable tips to prepare your e-commerce logistics for the busiest times of the year.

Plan Earlier 

Freight rates rise, and capacity plummets during the peak season, leading to significant supply chain and logistics challenges for retailers.

That’s the reason you should forecast and plan for the high volumes earlier. August is the ideal time to gear up for the holiday rush, but many commerce brands end up waiting until November.

Commit to timely planning in the first place. Establish a baseline by measuring the performance of your operations.

Taking inventory and maintaining accurate data are key steps as they enable you to know what you have and what you’re about to run out of.  

Timely labor procurement and shipping collaboration are other factors to stay on track for the upcoming rush.

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Think Beyond Forward Shipping

Planning for forward shipping is only half the work for e-commerce sellers.

Besides shipping on time, reverse logistics is another factor you must prepare for. More goods sold translate into more returns to process down the road. 

Statistics show that 16.5% of e-commerce sales ended up as returns in 2023. You should be ready to handle the influx, from picking the products from buyers to bringing them back to the warehouse and preserving value throughout the journey. 

According to Sifted, a clear reverse logistics process can help sellers reduce hidden costs and gain customer satisfaction.

Additionally, it enables them to claim the leftover market value of products or dispose of them safely. It should be a part of the operations to facilitate a smooth movement of the returned goods. 

Set A Realistic Budget

Logistics can get expensive during the high season because of the interplay between demand and supply.

Having a realistic budget can help you deal with the financial struggle. You may also need to increase shipping rates, which seldom goes well with the buyers. 

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Realistic financial assumptions help you plan wisely. You can review historical data by analyzing the previous years’ shipping costs to chart a strategy for the current one. 

Explore options like contractual rates with shipping providers and taking less popular but cheaper routes to lower shipping costs during peak times. Having a budget helps you make savvy choices and control costs in the long run. 

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Leverage Multiple Carrier Services

A single-carrier system may be good enough to manage deliveries for a small e-commerce business.

But peak season can cause a sudden sales boom, so using multiple carriers is the best solution for an effective distribution process. 

Opting for different services means more options and cost-savings depending on the size, type, and destination of the shipment.

While multiple carrier management may seem a big hassle, you can streamline it with an automated solution.

With logistics intelligence, you can choose the best providers, secure optimal shipping rates, and manage carrier operations and contracts more effectively. Integrate the solution on time to get ready for the high season.

Embrace Shipping Best Practices 

The peak season entails high demand and last-minute orders. The ability to handle the rising order volume is the key to success.

An optimal shipping strategy can protect your brand reputation by preventing delays, mixed parcels, and poor customer experience.

Embracing shipping best practices can make all the difference. For example, you can prioritize full-load shipments to ease the distribution process.

Splitting shipment and dividing it between a few shipping carriers works well during the hectic season as it can help you deliver critical orders on time. 

Also, steer clear of transfers or indirect shipments, even if they have a money-saving potential.

Conclusion

The peak season is an opportunity to prove your worth as an e-commerce seller. Not to mention, going the extra mile with your product and service quality can boost profits and build loyal customers. 

A smooth logistics process can be a game-changer because buyers expect timely delivery during the rush.

You can rely on these measures to win the logistics game and stay on top of customer expectations. 

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