Retail news that keeps industry pros in the know
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Retailers started a “December to Remember” in October. They plastered their websites with shipping deadlines and patience reminders. It wasn’t enough.
Shipping routes are overwhelmed with packages in the two days before Christmas, every outlet reports. FedEx and UPS capped their daily deliveries weeks ago, shifting six million extra packages on average to the USPS per day.
- Online sales rose 33% YoY during the second week of December, per NPD Group data. That pushed retailers closer to their Q4 rev goals...and clogged shipping routes further.
- ShipMatrix, a package delivery data provider, expects there’ll be more than one million packages stuck en route on December 25.
This isn’t leading to a Hallmark movie ending. Retailers with extensive store networks are pushing curbside pickup and expedited last-mile delivery, but that inventory and presumed capacity can only stretch so far. Best Buy is even asking its store employees to deliver packages, Bloomberg reports.
For those operating in the virtual world, over-communicating with customers is the best move left. Shining example: these personal cards Oui the People founder Karen Young wrote for shoppers to download and send to anyone whose gifts are stalled in transit.
Who’s ready for seconds?
Returns may start as the last gifts are unwrapped Friday, extending shipping network delays.
- Typically, e-comm return rates hover between 25% and 30%.
- Combine rising online shopping volume with greater bracketing rates (buying multiple sizes of the same item), and return rates are expected to shoot higher.
To gear up, some retailers are launching programs to smooth the process—ideally building loyalty for future purchases. Walmart, for example, has partnered with FedEx to offer at-home returns pickup.
- Lasting solutions to reduce returns may start earlier in the purchase journey, like developing tech tools for finding an accurate fit before hitting “Purchase.”
+ While we’re here: Amazon’s seizing on the shipping fracas to win over sellers. In a blog post, the company said it’s delaying annual logistics fee hikes.