As early as last summer, experts predicted the 2020 holiday shopping season would be a special kind of bonanza. To top off an over-the-top year, customers have already started feeling the effects of it all when shopping online – tons of out-of-stock items, limited supply chains, and most infamously – shipping delays.
“Demand has been strong, and a friend of mine calls it ‘Shipaggedon,’ or concern about what’s going to happen in the transportation network,” David Bolotsky, Founder and CEO of the online retailer Uncommon Goods, said, echoing a notion many share right now.
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“What I think it means for shoppers is if you see something you want, I would buy it now; stick it under the tree.”
As Adobe Projects puts it, this holiday shopping season will be a record-breaker in terms of online sales, said to hit $189 billion.
Back in October’s delayed Amazon Prime Day is when consumers got the first hit as carriers had to refuse deliveries. But what about the retailers and suppliers on the other side of the Shipaggedon?
With the jolliest time of the year around the corner – experts say that delays and REAL chaos are coming as parcel companies, like FedEx and UPS, have already stretched thin, tackling a surge in holiday packages.
“Worldwide supply chains are in disarray. The current pandemic affects everything, and the transport and logistics sector is in the thick of it. Shipping companies and ports across the country are already struggling to keep up with consumer demand, and the worst is yet to come,” said David Aitken, CEO of National Road Carriers Association (NRC).
With a potential shortfall of as many as 7 million packages a day, this will surely be an unprecedented peak season for both sides of the party.
Retailers, make sure your brand is ready in terms of suppliers, inventory, and carriers – as this year is said to make online shopping history!
Customers, if you’re usually a last-minute shopper, you definitely want to avoid waiting for the eleventh hour to get those Christmas presents this year!
Look at the bright side; you can make more thought out and spaced-out purchases that are less frantic.
More Adobe Projections listed by Retail Customer Experience:
- From November 22 – December 3 – online sales will pass $3 billion a day.
- Black Friday – projected to generate $10 billion in online sales, an increase of 39% YoY.
- Cyber Monday – will generate $12.7 billion, a 35% jump YoY – remaining the biggest shopping day of the year.
- Smart Phones – Americans will spend $28.1 billion more on their smartphones in comparison to last year, accounting for 42% of all online sales.
Watch this space for updates on the issue in the coming weeks.