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Kart2door - The Global Holiday Season is Closer than You Might Think

The Global Holiday Season is Closer than You Might Think

September 16, 2021

Ed Burek

Christmas Delivery

The pandemic has forever changed the way people buy goods and services. Now, more than ever before, customers are seeking online e-commerce solutions and home delivery to solve everything from basic needs to more expensive technology and appliance purchases. While most people are just beginning to think about fall and back to school, the 2021 holiday season is closer than you might imagine. With less than 50 days to Diwali and only 100 days until Christmas, companies will need to identify their e-commerce logistics strategies and implement them now rather than later.

At least in North America, the major push for the holiday shopping season is expected to start in a few weeks from now, rather than in late November or early December. In a recent study, Facebook found that there was a stark 47% increase in U.S. holiday e-commerce sales last year, and “nearly half of shoppers we surveyed also started shopping before—and often in place of—in-store doorbusters on Black Friday.” We have seen similar trends in Asia, Europe, and Latin America.

Last year, many e-commerce companies felt this pinch of increased demand. The primary delivery carriers: UPS, FedEx, and USPS, often failed to deliver products on time, disappointing customers and damaging e-commerce brands. 2021 is only expected to compound the issue for companies hoping to reach their customers’ doorstep with timely deliveries.

According to Qubit, close to a third of all shoppers will increase the number of products purchased online versus 2020. With this substantial increase in online shopping, e-commerce companies will need to figure out how they will handle substantially more volume than in years past—coupled with increased expectations of how quickly a package should arrive.

E-Commerce Companies Must Solve Logistics Challenges Now or Risk Falling Behind

The pandemic continues to add significant wrinkles in e-commerce logistics. The COVID-19 variants, Delta variant being the main one right now across much of the globe, will continue to stress all parts of the supply chain. Additionally, there are labor shortages everywhere, from the retailer to the warehouse. Salesforce suggested in August that “logistical challenges could pose a $223 billion retail headwind in the second half of the year.” The logistical hurdles are significant, and we expect retailers unable to adapt in time will not stay in business for long.

Retailers must create products their consumers desire, market them successfully online, and deliver in as little as a day. With more and more customers discovering products on their mobile devices and making quick, seamless transactions, e-commerce companies need to start putting all their logistics systems in place or risk potential failure as a brand.

The Race to Solve Last-Mile

UPS CEO Carol Tome’ predicts that 2021 parcel delivery demand will exceed capacity by approximately “5 million parcels a day.” Translated into practical terms, the expected rise in e-commerce this fall will require additional last-mile providers to perform essential logistics services. Few providers can provide actual shopping-cart-to-door experiences for e-commerce retailers, while most will focus solely on last-mile. Because the last mile accounts for over half of all delivery expenses, it is the most cumbersome and challenging obstacle for a retailer.

If you are a retailer and haven’t figured out your e-commerce logistics solution, it may soon be too late for this holiday season. The key to success is finding a partner who can seamlessly get your packages from your online store to your customer’s door in just a few hours or days. The time to act is now.

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