5 Peak Season Fulfillment Challenges (And How To Avoid Them)

The peak season is full of promise, and a ton of pressure. 

With an influx of orders, your operations must be up for every challenge (and curveball!) To scale appropriately and keep customers smiling, we’re sharing 5 tips below on how to make the most of every peak season opportunity, minus the overwhelm. 

What is the peak season? 

The peak season, also known as the holiday shopping season, occurs in Q4. The timeline shifts a bit each year, but it is generally considered to be October to late December. While this is considered the #1 shopping event of the year, it doesn’t mean the rest of the year is smooth sailing. 

As retailers know well, the back-to-school season can be just as busy, especially if your company specializes in products that center on classroom supplies or general apparel. Since that season closes in early September, there isn’t a ton of time to catch your breath. That means your fulfillment operations must run seamlessly to keep up with the steady demand. Unlike most problems in life, this is a good one to have. 

To get ahead of peak season planning, mark your calendar to plan around important dates. 

That includes the massive Black Friday Cyber Monday sales weekend, spanning November 29th and December 2nd respectively, which squeezes in Small Business Saturday on November 30th. 

To keep an eye on shipping deadlines, other major moments include Christmas (December 25th), Hanukkah (December 25th – January 2nd), and New Year’s Eve (December 31st). Plus, once presents are unwrapped, expect returns to climb. 

Ultimately, the holiday peak season is packed with exciting opportunities for ecommerce brands to take advantage of rising demand, which is poised to be higher than ever this year.

Peak Season 2023: By The Numbers 

Growth was the name of the game in 2023 with a 4.9% increase in online sales from 2022. Speaking of prime dates, Cyber Monday sales jumped by 8.4% too. 

In total, The National Retail Foundation (NRF) reported that consumers spent $964.4 billion, showing promising signs of resilient consumer spending. 

While consumers were willing to open their wallets, they used their cash wisely, as 73% of Gen Z and Millennial shoppers prioritized finding deals, often tracking items on online wish lists, or leaning into buy now pay later (BNPL) options. Peeling back the wrapping paper, the biggest sectors of growth were electronics and appliances, as well as health and personal care.

Lastly, traditional ecommerce channels shifted, with a 40% increase in conversions for businesses that leveraged social commerce, like TikTok Shop. Social commerce has no signs of slowing down, so investing in this tactic is a smart consideration as you build a fluid omnichannel experience. 

Now, while the goal is to get orders in the door, what happens next is equally important.

5 Peak Season Fulfillment Challenges (And Solutions!) 

Throughout the holiday season, stress is dialed up a notch for both brands and customers alike as they aim to meet their gift-giving deadlines. Don’t be the reason they show up at the office holiday party empty-handed! 

Customer fulfillment expectations are higher than ever, as speed remains the #2 priority for shoppers, who are more than willing to switch retailers if they fear they won’t get their products in time. To avoid mishaps, we are swapping problems with practical solutions below. 

The Challenge: Shipping Delays

The Solution: Think Bigger About Your Shipping Strategy 

In terms of the peak shipping season, it’s best to not put all your eggs in one basket. It’s time to diversify your carriers to ensure gifts get delivered promptly (and avoid too many supply chain disruptions). Be cautious with who you go with, and vet accordingly to ensure they meet your coverage needs, fall within budget, provide reliable human-centered customer support, and offer specialized services.

Another opportunity for optimization is leaning into a multi-node fulfillment strategy, where instead of relying on a single distribution center, you can unlock a nationwide network of micro-fulfillment centers to fulfill and ship orders. This strategy identifies the best carrier, which can help you reach customers faster, particularly those located in dense areas, like a large city that has direct access to transportation networks. 

The Challenge: Complex Labor Management

The Solution: Let A 3PL Handle the HR

Likely any good football coach will tell you, your roster matters. Throughout peak season, you’ll likely need more skilled team members on deck to give you a hand. Although temporary staff may only plug into your team for a few weeks, it’s important to manage them effectively and create a welcoming, efficient environment, especially if you want them to return for the next season. 

Tapping a trusted third-party logistics partner (3PL) can give you a birds-eye view of where your gaps are, and scale labor up or down depending on shifting demand. Navigating a warehouse is no easy feat, but your 3PL can train personnel to adapt their skills across several areas, enabling them to hop from one account to another with specialized fulfillment process Standard Operating Procedures (SOPs). 

The Challenge: Inaccurate Forecasting

The Solution: Leverage Historical Sales Data 

Information is key to preparation. Sit down with your marketing team to anticipate holiday demand by taking a closer look at your past holiday season sales and current trends. Every audience is different, but it doesn’t hurt to examine current consumer preferences. For instance, if you’re an apparel retailer, note which colors are flying off the physical (or virtual) shelves. 

Working with a 3PL can make all the difference, as they can closely monitor demand so you can make the best-informed inventory decisions. 

The Challenge: Inefficient Inventory Management 

Solution: Invest in Advanced Technology 

Did you know the average inventory accuracy can be as low as 65% in the U.S.? To avoid stockouts or too much inventory in the warehouse, your technology may need an overdue upgrade. 

You deserve real-time visibility on your SKUs, so investing in top-tier inventory management software is a must. The right reporting tool can give you an immediate scoop on stock levels to replenish as needed, identify bestsellers, and monitor turnover.

Additionally, the software allows you, and your customer, insights on where inventory is at any given moment, avoiding a stream of Where Is My Order? (WISMO) requests. As a result, you can get a clear picture of your customer’s favorites. Plus, you can avoid dead stock by signaling the low-performers so you can keep inventory moving by offering a sale. 

This all comes down to mastering the art of de-prioritizing non-essential shipments and expanding your profit margins. 

Challenge: Messy, Costly Returns 

Solution: Find Hassle-Free Returns Technology and Management

Although returns aren’t ideal, offering a seamless process keeps your customer happy, especially those who may not have loved their gift, and plan on exchanging it for store credit. 

Nearly 80% of shoppers review a return policy before shopping with a merchant for the first time, and the National Retail Foundation suggests that 18% of holiday purchases will be returned. 

Depending on your budget, determine whether you will offer free returns, or implement paid returns to offset shipping costs. No matter what you decide, be transparent to maintain customer satisfaction.

Instead of creating a costly headache for you and your customers, invest in tools that streamline the process, and give your customer more flexibility, like Loop, which now also encompasses Happy Returns. 

When partnering with a 3PL, ask the following reverse logistics questions to understand how they manage return effectively:

• Will there be allocated space in their warehouse for returns?
• How do they handle staffing for returns? 
• Do they inspect products before returning to the shelf? Pro tip: This is a value-added service (VAS).
• How long does it take for products to be returned to stock in a sellable condition? 

When you’re choosing a partner, go with the 3PL that tailors your strategy and SOPs around your best interests. 

Ready to master peak season fulfillment? Partner with an experienced 3PL this holiday peak 

If the incoming peak season is creating stress for your brand, the good news is that holiday roadblocks can be avoided easily with the right fulfillment partner. 

At WSI, we want you to put your energy where it matters most – scaling and growing your company. But as you set your sights on new markets, keeping your fulfillment in-house might no longer be an option. We understand the competition for online commerce is fierce, and customer expectations continue to climb. To keep up, you deserve to know your products are delivered safely, and we provide that security with our ecommerce fulfillment services.  

How our team makes peak season order fulfillment easy for the holiday season:

• Efficiency. Every gift deserves first-class treatment. We have strong carrier relationships and a plugged-in connected network, so we can ship small parcels in 1-2 days via ground shipping. 
• Scalability. Don’t miss a beat during Black Friday, or any major sales day. Increase your profit margins by effectively managing your holiday inventory with our custom portal and order fulfillment process. 
• Cost-savings. Get tedious tasks off your plate, and more money back in your pocket. After all, you have holiday shopping to do too! We’ll help you organize warehouse storage, carefully hire staff as needed, and invest in logistics technology. 

Want to learn more about how to make the most out of peak season? Get in touch with one of our friendly fulfillment experts today.