We are deep into Q4 2020 and with it all the possible reasons to already be neck-deep in finalizing and maybe even executing on your holiday marketing strategies.
Yes, we know, from Thanksgiving’s BlackFriday+Cyber Monday double whammy to Christmas and New Year’s, the kickoff for the most significant shopping period of the year is still a couple of weeks away. And in a normal year, you’d still be busy with some back-to-school or other summer leftovers.
But this is no normal year. Of course. No one really went back to school. Most people could not go anywhere for a summer getaway. And, above all, this upcoming holiday shopping season is gift-wrapped in a thick layer of looming shipment issues. Issues you should have started addressing by now.
See, by most accounts – it’s going to be bad.
While delivery services such as FedEx have grown their parcel capacity by 5-10% a year recently, and sometimes even a little more than that, the rate in which online shopping has been growing is faster – anywhere from 13 to 20%. And it has been exceptionally quicker this year. According to the source you’re looking at, this number can be anywhere between 40 to 80%.
We can already see its impact on delivery companies’ ability to get you your package on time. According to Shipmatrix, Amazon has dropped from 95% on-time rate to 85% for its two-day delivery option. And other major services – FedEx, UPS, and USPS – are down from 95-98% to about 92%.
These figures are based on activity during the non-holiday months of Q2 2020, where deliveries hit 24.4M daily packages – 92% of what it was during the 2019 holiday season.
Of course, this is all the result of the coronavirus outbreak and how it has impacted our lives. But, keep in mind – this is all way BEFORE the holiday season.
71% of adults said they planned to do most of their holiday shopping online. And if this waiting-to-happen-shipageddon (took that from The Jason and Scott Show) is not enough, people from within the retail industry have been talking about rumored shipping caps. We at Optimove have heard those same rumors too.
Throw in the possibility of shipping surcharges on the delivery services’ part when things really become too much to handle, the fact consumers are repeatedly saying in surveys that they mostly care about free shipping and returns, and for packages to arrive on time – then almost anything else, and that’s certainly a marketer’s worst nightmare waving at you right here.
And judging by what the October-delayed Amazon Prime Day showed us, the issue is real. “Holiday crunch starts early with more packages than means to deliver them”, reported The Wall Street Journal on October 19th, adding that “FedEx, UPS and smaller carriers turn away customers as they brace for a surge of online orders”.
But, fret not, because it’s not lost yet. And we’re here to help. Over the past few weeks, our expert marketing analysts at Optimove’s Strategic Services team have been compiling a list of things you can STILL do to better prepare your brand for what is looking like an unavoidable reality of shipping chaos.
Here is one group of moves you can plan. For more, feel free to contact Optimove’s Strategic team at info@optimove.com.
Let’s make the 2020 holiday season one to forget remember:
Encourage Earlier Purchases
Of course, the idea here is to spread shipping loads more evenly. This is perhaps the main reason why many giant retailers are starting their sales much earlier (you know Amazon Prime Day is on October 13-14 this year, right?).
But, easier said than done, right?
Here are a few ideas on how to go about that:
Offer heavier discounts NOW. It’s basically like what Amazon and others are already doing. This can be framed as: “Planners save more!” and you can create an inverse discounting calendar: start with your highest discount +1 month out from holiday, and then reduce the discounts as the holiday approaches. Just make sure to inform your customers of this calendar by using “Best Price!” notes and banners. And don’t forget to use dynamic email content blocks to automatically reduce the discount amount as days go by.
Additionally, we encourage you to choose your battles. Retailers do not want to be “the one who didn’t deliver,” and so we recommend you identify the products that are at risk of going out of stock, and pull them at a certain point in time. Combine this with low inventory notes, and EARLY deals on items you expect to run out (and be prepared with alternative suggestions for out of stock).
Finally, there’s always the “Wait for a little now… save a lot later” offer. In other words, offer free shipping on the next order (or any additional incentive) for customers willing to order now but receive their order after the holidays. This can be specific to non-holiday items, or all.
And good luck!
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