3 Ways Retailers Should Prepare for Peak Season 2024

Peak season has become increasingly competitive for retailers. As more consumer spending shifts online, a convenient, seamless delivery experience has gone from a differentiator to table stakes.

Shoppers expect fast, flexible, inexpensive delivery options. The Baymard Institute reports that 48 percent of cart abandonments are due to high extra costs (like shipping and fees) and 23 percent because delivery was too slow. Retailers that prioritize delivery speed, optionality and reliability will earn loyal customers and fuller shopping carts.

Those priorities are emphasized even more during peak season, which seemingly starts earlier each year. Sales events now begin as early as October, and the continued proliferation of e-commerce has made peak season more profitable. According to the National Retail Federation, last year’s holiday sales were a record $964.4 billion.

E-commerce’s growth has led to pre-pandemic predictability. Consumers are still spending despite all the buzz about the economy and inflation — confidence rose in May for the first time since January, highlighting retailers’ opportunities.

At the core of that opportunity is optimizing delivery execution to capture maximum sales and customer loyalty during peak season. Let’s explore three key strategies for success.

1. Invest in delivery optionality.

Today’s shoppers expect to receive their orders exactly when and how they prefer. Providing a range of delivery options ensures you can meet your customers’ expectations, whatever they may be.

Shoppers spend more and convert at higher rates when they have their pick of fast, convenient shipping choices. During peak season, delivery speed and flexibility become even more crucial factors. We recently conducted a study that found 66 percent of businesses had higher conversion rates after they rolled out same-day delivery.

Major retailers like Walmart and Amazon.com have recognized this demand and invested heavily in building various delivery modes under their umbrellas. Their optionality investments are paying off through continued market share gains.

2. Prioritize big and bulky capabilities.

As e-commerce grows, consumers increasingly expect seamless delivery for even large, unwieldy items like furniture and appliances. Providing an easy delivery experience for big and bulky purchases is a key differentiator for retailers.

Larger items are often higher-margin products for retailers, so optimizing deliveries in this category can have an outsized impact on profitability. Also, with many households no longer owning trucks or vans, shoppers have no easy way to transport large purchases themselves.

Traditional freight companies struggle with big and bulky deliveries, requiring appointments scheduled days in advance with little end-customer visibility. Forward-thinking retailers invest in big and bulky delivery capabilities as a core part of their e-commerce experience.

3. Build a resilient, diverse delivery network.

While predictability has largely returned to retail after the chaos of the pandemic, unexpected disruptions can still easily snarl deliveries and ruin the customer experience. Retailers need resilient shipping capabilities to navigate challenges like severe weather events, supply chain snags and geopolitical instability.

The key to resilience is not having all your eggs in one delivery basket. Relying solely on a single shipping option or provider creates vulnerability. For smaller retailers, matching a Walmart or Amazon level of flexibility isn’t feasible from operational and cost perspectives. By integrating with a partner that has a nationwide same-day crowdsourced delivery network, retailers can offer a full suite of shipping options without building their own delivery infrastructure.

Peak season presents an immense opportunity amid relatively stabilized consumer spending habits. Those retailers that make intelligent investments to optimize their delivery capabilities will be primed to capture more sales and earn long-term customer loyalty. Peak season winners treat delivery as a strategic centerpiece rather than an afterthought. With the right preparations and partnerships, any retailer can set itself up for success.

Dennis Moon is the chief operating officer of Roadie, a crowdsourced delivery platform that enables urgent, same-day and local next-day delivery.