The holidays are always the busiest time of the year when it comes to direct-to-consumer brands, as gift givers are able to do more shopping online than ever before. About 25% of total annual retail ecommerce revenue has been generated throughout the holiday season. In fact, Cyber Monday 2018 was the biggest online shopping day in U.S.history, with total spending close to 8 billion dollars. Moreover, 78% of ecommerce brands saw up to 30% growth during Cyber Weekend 2018 sales as compared to 2017, with an additional 11% of ecommerce brands, and can see up to 50% growth in revenue. What does all this mean? It means that the holidays present a huge opportunity for ecommerce brands to multiply their sales, but only if they’re prepared for handling an influx of orders at a fast pace. Read on to learn more about what the best fulfillment companies recommend in order to handle your holiday sales spikes. Call Ship Sensei to learn more about our Miami fulfillment center at our Medley, FL office!
Preparing Your Inventory For The Holidays
It can be difficult to plan for peak season, as your order volume is totally off the regular linear growth chart, and no two businesses have the same processes. Even the best planning necessitates a continuous oversight of inventory levels and order volume throughout the holiday season. Here are some tips that Ship Sensei uses at our Miami fulfillment center to handle your holiday inventory flow:
Stock up appropriately- It’s essential to get demand forecasting as accurate as possible to make sure that you have the right stock levels on hand in time for the holiday season. This means that you need to have a thorough understanding of sales velocity at the SKU level, as well as analysis of where you’re shipping your orders in order to optimize storage location.
Look at sales data- Analyze sales data from previous holiday seasons to assist you in predicting what the sales are going to be like this year, and also take into account any new products you’ve introduced, new channels you’re selling on, changes in ad spend, and the general growth that you’ve encountered each month.
Track inventory levels accurately- Even with the best inventory planning tools and methodologies in the world, forecasts can still be wrong and the unexpected can happen. This means that your product could getfeatured in a few major gift guides, receive an organic celebrity endorsement on social media, or suddenly become the must-have present for a certain demographic. This is why you have to continuously look through your inventory turnover, stock counts, and daily order performance. It’s important to have real-time inventory tracking so that you can monitor actual stock levels and see how you trend against your estimates.
Holiday Tips From The Best Fulfillment Companies
Once your inventory is ready to go, it’s time that you fulfill your customers’ orders. However, holiday fulfillment is much more complicated than in the non-seasonal months, which is why you should think about outsourcing fulfillment. This is especially true since a lot of companies experience most of the their order volume for the year just in Q4 alone. If you try and handle order fulfillment by yourself or with a small team, you will have to call up all of your friends or hire temps or full-time employees, just to let them go when the holidays finish up. This is why the majority of brands and sellers outsource fulfillment to an established 3PL such as Ship Sensei rather than spending precious time and resources to pack and ship an unpredictable amount of orders.
Contact Us Today
There are many factors involved in handling your holiday stock needs that the best fulfillment companies take into account. Call Ship Sensei’s Miami fulfillment center today at our office in Medley, FL.