On a normal holiday season, retailers get prepared to experience delays in shipping. Even last year, while not yet out of the woods from the pandemic, there was a high volume of holiday shipping combined with an enlarged e-commerce activity mostly produced by the need to shop online, instead of at stores.
In 2021, however, the list of retail inventory impacted by the ongoing supply chain crisis is growing by the day to include most probably what you have on your very own holiday wish list, for example:
- children’s toys
- home appliances
some food staples are quickly falling into this group too.
To think that the peak shopping season is right around the corner, but has not even started yet. Some retailers are listing their holiday items weeks ahead of schedule to try to anticipate the seasonal surge in order to overcome inventory shortages.
Merchants have many shipping options to consider, but having a good shipping strategy does not necessarily mean you have to offer all shipping options possible. You must find a balance between the options that are affordable, aligned with your customers’ needs, and are realistic in terms of e-commerce logistics.
Consumers in general, don’t pay much attention to the challenges attached to the global supply chain, that itself makes it really hard on businesses trying to provide that positive experience while dealing with a global crisis behind the scenes. Now, more than ever, people expect fast and free delivery and they want to be able to track their items from the time they leave the warehouse until they arrive at their front door.
Unfortunately, delays at the start of the supply chain will lead to delays at the end of the supply chain. It means that not only businesses are struggling to source inventory, they’re also struggling to deliver this inventory to consumers in a cost efficient manner. Aside from shipping delays, the whole situation also means holiday shipping costs are expected to reach unprecedented levels. Large corporations usually have enough padding to deal with situations like this, but for small businesses, this might not be a feasible option. In most cases, communicating with customers early and often will help customers understand why shipping costs have increased. Also, as we get closer to the holidays, it might also be a good idea to set an early cut-off date to guarantee delivery by certain dates. It’s better to under-promise and over-deliver, so give yourself enough of a margin to meet your delivery promises in the event of a worst-case scenario.
At Garzor Insurance we care about your business. Our experienced professionals are dedicated to providing commercial insurance, including business general liability coverage in Florida as well as Texas, and now many other states across the U.S.A. If you have questions about truck insurance, or any other commercial insurance aspects, please do not hesitate to visit us online at Garzor Insurance, or you may want to call us directly at (321) 206-8035.
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