The holidays are the busiest time of the year for e-commerce businesses which can be a stressful experience for many businesses and consumers. According to Statista Research Department over 2.14 billion people worldwide are expect to buy goods and services online in 2021. The ecommerce sales are expected to continue to rise especially after the impact of the COVID-19 pandemic.
Merchants face many challenges in the ecommerce market around storing and fulfilling inventory to keep up with the seasonal demands. The ecommerce market is extremely competitive, and businesses often struggle with the volume spikes, therefore, may find it challenging to manage the heavy traffic and order volumes. We have come up with four ecommerce fulfilment tips to help your business manage peak season sales more successfully:
Implement an Inventory Analysis:
Create a clear inventory analysis based on previous years’ sales history and current industry trends. An inventory analysis will allow decision makers to identify the periods of seasonal demand based on historical data which will allow merchants to take control of their profit margins and inventory levels of their businesses. The analysis will allow businesses to adjust their inventory levels when necessary to prepare for future seasonal demands.
Invest in an Inventory Tracking System:
Investing in a proper inventory management software will allow ecommerce businesses to have a better warehouse management operation in place. Installing inventory management system will allow ecommerce merchants to monitor sales of seasonal items and forecast the scale of demand outside the peak periods to plan inventory levels accurately.
The inventory tracking system also allows business to keep their goods organised and ensure full stock control. Without an inventory tracking system can lead to ineffective inventory management making businesses unaware of low stock levels which can lead to unsatisfied customers and a negative impact on the business.
Using a warehouse management system will allow ecommerce businesses to stay ahead of changing warehouse requirements and achieve warehouse excellence. Canary 7 is a scalable warehouse management system which streamlines warehouse operations by optimising use of staff, inventory, and order management, picking and put away, shipping and returns. The WMS provides monthly development sprints which allow Canary 7 to respond quickly and smoothly to changing warehouse requirements.
Prepare stock levels:
Preparing sufficient stock is extremely important during the holiday season. High volumes of orders are expected during seasonal periods including Black Friday, Cyber Monday, and Christmas. These periods are extremely competitive therefore, customers will find alternatives if there is no stock available, therefore it is important to have safety stock to sustain the volume of orders. The safety stock will lead to satisfied customers and have a positive reputation for your business during the seasonal periods.
According to the Guardian, because of workforce shortages and transportation disruption caused by Covid and Brexit, Britain's economy has been thrown into a supply chain crisis, with major retailers' stock levels at their lowest. As we approach holiday season, there will be pressure in ecommerce businesses due to stock shortages.
There can be many causes to stock shortages including poor forecasting, inaccurate inventory data and inefficient processes. Stock shortages can have a negative impact on sales and the company’s reputation therefore, gaining a better visibility of your businesses operations is extremely vital for the success of the business. Implementing an inventory management system would help businesses to attain better visibility of their operations. A WMS such as Canary 7 will help minimise lead times, eliminate the need for safety stock, and guarantee low stock is supplied by limiting inventory movement and enhancing record accuracy.
Provide Customers with Regular Updates:
Providing consumers with regular updates on their order will provide your ecommerce business with an advantage. Customers will be satisfied with knowing the progress of their order and this provides the customer peace of mind during the seasonal period that they will receive their Christmas shopping on time.
To conclude, with the holiday season fast approaching, it is important to start preparing your supply chain to handle the fluctuation of seasonal demand. Implementing an appropriate warehouse and inventory management strategy will ensure the order fulfilment is more successful during the holiday season. This will result in happier customers and increase repeat customers.
Meteor Space provides order fulfilment solutions to ecommerce businesses who may not have the warehouse facilities to keep up with order volumes. We take pride in improving inventory accuracy, order accuracy and shipping times to increase customer satisfaction. Now is the time for many to consider warehousing and fulfilment options ahead of busy period for many industries.
Get in touch today by phone 028 (048) 867 52108 or email [email protected].