With Black Friday Cyber Monday (BFCM) on the horizon, the anticipation (and anxiety!) will be climbing for retailers everywhere.
Throughout peak season, there’s so much opportunity to achieve record-breaking sales and end Q4 on a good note. Perhaps the star of the sales show is BFCM, which pulled in nearly $9.8 billion for Black Friday, and $12.4 billion for Cyber Monday in 2023.
Looking closer at the data, overall ecommerce sales grew faster than in-store retail, signaling digital is opening more doors. However, simple mistakes can easily slam those doors shut. Slow shipping speeds, misguided marketing, or poor fulfillment processes can stop your business from reaching its potential.
Below, we’ve identified seven major roadblocks our WSI experts have seen during BFCM, and how to overcome them with proven tactics.
Mistake #1: Failing to forecast demand accurately
Going into the holiday season, it’s vital to think like a customer. Aside from getting a good price, they are likely stressed to get their gifts on time – so stockouts, backorders, or shipping delays won’t cut it.
Before you panic-order in bulk to avoid this scenario, remember that overstocking is not the solution. Your warehouse space is sacred, and packing it could be costly, especially if inventory is slow-moving.
How to avoid it:
Look to the past. Closely examine your historical BFCM data, consumer trends, and predictive analytics to anticipate demand before you place your product orders.
Communicating with suppliers is key. Make every effort to ensure they have adequate stock to fulfill your orders, especially those with high demand.
If you’re working with a third-party logistics provider (3PL), like our team at WSI, you’re ahead of the game. A 3PL can help you implement inventory management software to monitor real-time stock levels and identify when it’s time to refresh, which will be especially helpful as orders surge during BFCM.
But, the reality is, sometimes stockouts can’t be avoided. Especially if products are flying off the virtual shelves! For every product on your site, you ask yourself, “What if we run out?”
Your 3PL can help answer that, guiding you to map out a contingency plan to communicate quickly with the customer, and offer solution options like partial order delivery to avoid cancelling an order completely.
Mistake #2: Not having a scalable plan for increased demand
If you’re new to the BFCM madness, your goal is to be Rookie of the Year. If it’s not your first rodeo, your goal is still to be the best! Yet increased demand during this time period often overwhelms retailers who haven’t prepared enough for the spike in orders.
This can be a lot to juggle, and lead to plenty of errors like late deliveries, unfulfilled orders, or even incorrect products—like sending a pair of pants instead of shoes. A surprise no customer wanted.
This can cause frustration to climb, leading customers to turn to their phones and start writing those negative reviews. It also breaks trust, which can be a huge killer of brand loyalty.
How to avoid it:
If you’re teaming with a 3PL or fulfillment partner, this is where they can advise you on how to approach temporary labor management, and train their team on your behalf.
By hiring new team members for the holiday rush, you can scale labor up or down based on demand, avoiding long hours that lead to burnout, and more errors.
Aside from labor, this time of year also requires different processes in the warehouse. If you take the time to design tailored specific standard operating procedures (SOPs) for efficient picking and packing, this will lead to faster fulfillment, the end goal for everyone.
Mistake #3: Not checking your website health
Sometimes, we have to ask ourselves the tough questions. For instance, would you enjoy shopping on your site?
With an influx of website traffic during BFCM, retailers have to be prepared for more eyeballs, and more critiques. Especially if they want to leave a good first impression.
According to Hubspot, 75% of your website’s credibility is attributed to design. While you could already have an engaging, responsive website, it will always need a health checkup – which we all need once in a while!
Some common website mistakes are slow site speeds, long-winded checkout processes, or a poorly designed mobile site that looks nothing like the desktop version. Plus, let’s not forget about the pop-ups. The goal is to educate the customer or surprise them with a deal, not annoy them.
All of these factors can contribute to an abandoned cart or a high bounce rate. From there, consumers will bounce to another store that sells similar products.
How to avoid it:
First off, prioritize the simplest problem: website speed. You can help your site get up and running with tools like Google PageSpeed Insights to identify and resolve issues.
Another great way to ensure fast click times is by implementing Content Delivery Networks (CDN). This tactic can improve load times with image compression techniques, increase content availability, and enhance website security, which is always a concern.
A mobile-friendly site is critical, as it is reported that mobile commerce will account for 44.6% of U.S. ecommerce sales this year. As your marketing team is designing, ensure that products are visible, navigation is a breeze and the checkout process is seamless, not a maze. That means it only takes a few clicks to submit the order.
Mistake #4: Poor communication on shipping status
When an order is placed, it’s a pivotal point for customer trust to build or break. Given the added pressure of getting gifts on time, customers expect reliable, accurate updates on their order status.
If you fail to offer consistent communication updates, you run the risk of getting an influx of Where Is My Order? (WISMO) requests. That puts more responsibility on your customer service team, whose time would likely be better spent putting out bigger fires during BFCM.
How to avoid it:
There are many ways to get ahead of the game. The simplest is to set up automated shipping notifications through your customer relationship management (CRM) software that keeps customers informed at every step, providing them with helpful details such as the tracking number, which is updated by the carrier you select.
This can be done via email or SMS to improve transparency. If you need to notify them of a delay, it’s best to be honest and provide details about the issue, like inclement weather or supply chain disruptions. If you have a better time window of when it will be delivered, that could be helpful to include so they can plan accordingly.
Pro-tip: Partnering with a 3PL that offers real-time visibility into order status will ensure you (and your customers!) always know where an order is.
Mistake #5: Not developing a post-purchase strategy
During BFCM, you will likely draw in customers who have never interacted with your brand before. That’s good news, but how do you keep them coming back?
Without a post-purchase marketing strategy, you can miss your chance to impress your new influx of customers, or remind your VIP subscribers why they continue to pick your brand over the rest.
How to avoid it:
After BFCM comes to a close, leverage your marketing team to send personalized follow-up emails with exclusive offers or loyalty rewards. This can look like offering a 20% discount for their next purchase, or points toward their account. Aside from a digital campaign, you can also pack marketing inserts into packages through a custom kitting strategy, a benefit we offer at WSI.
For new and returning customers, pay close attention to what they buy. Collect clear data during this sales period to create targeted campaigns for future sales. If you see customers gravitating towards specific items or categories, like jackets, it would be wise to leverage dynamic content to send them a special jacket deal, or keep them updated on new arrivals.
Mistake #6: Not offering multiple fulfillment options
While ground shipping is certainly a convenient choice for customers, that’s not always the most flexible or ideal delivery option for them. Additionally, if they are unaware a product could be available faster or cheaper by picking it up at a brick-and-mortar location, you’re only increasing shipping costs for you and them.
How to avoid it:
Aside from offering multiple shipping speeds, if you have brick-and-mortar locations, give them the option to Buy Online, Pick-Up In-Store (BOPIS) or head to curbside pickup during BFCM.
This could add extra convenience for them, especially if your store is in an area they regularly visit.
At the checkout window, make it clear to customers that they have the option to pick up in store, and have them select their preferred method before submitting their shipping address.
You also could include a search tool that allows them to enter their zipcode to find stores with stock available. Keep in mind the goal is always to get your customers what they need as fast as possible, at the lowest price.
Mistake #7: No contingency plan for unexpected disruptions
In a perfect world, everything would go smoothly during BFCM, but that’s not always the case.
With a heavy load of customers visiting sites and placing orders, it’s incredibly common to run into site breakdowns, carrier miscommunications, or supply chain issues.
While we hope the worst-case scenario won’t happen, if it does, you don’t want to be left without a clear plan of action.
How to avoid it:
Work closely with your website developers to make a roadmap for backup systems, or equip your site with CDNs as mentioned above. Now if a total site crash happens, take to social media or email to alert your customers to let them know you are resolving the issue.
If your go-to shipping carrier lets you down, ensure you have a diverse mix of carriers to determine additional routes. For your customer service team, it’s best to prepare them with scripts to respond to common concerns so they can close cases as quickly as possible, without elevating them to higher management.
A theme of this blog, strengthening your communication with customers is essential during peak. As high as their expectations will be throughout BFCM, and the rest of the holiday shopping season, they likely understand the pressure your team is under too. Continue building relationships through missteps by providing real-time updates they can count on.
How partnering with a 3PL can help retailers nail BFCM
When BFCM comes around, it’s best to have as much support in place as possible so you don’t get stuck with all of the logistics on your plate.
While every brand is unique, and fulfillment strategies differ, they all share one thing in common – customers want their buying process to feel personal, and they want their presents delivered safely, accurately, and on time.
Partnering with a 3PL with seasoned experts can ensure that happens, and give retailers more space to do what they do best – grow their business, and end the BFCM rush with historic sales.
With our nationwide network and decades of experience, our team at WSI would love to help you navigate this season with confidence and clarity. Speak with one of our fulfillment experts by filling out our contact form.