Retailers, Ready for the Holidays? Here’s What to Expect in 2024

As the holiday season approaches, retailers must brace themselves for another year of shifting trends and heightened consumer expectations. The 2024 shopping period promises to be even more intense, with a continued focus on online convenience, seamless in-store experiences, and faster fulfillment services. Preparing for the inevitable surge starts with understanding the trends shaping the landscape and knowing how to adapt accordingly.

Based on data from Linnworks' Peak Season Growth Playbook, retailers must prioritize omnichannel strategies that extend far beyond customer touchpoints. Success this year will hinge on bringing backend operations into the fold, ensuring that inventory, fulfillment, and customer experience strategies are tightly aligned to handle the seasonal rush. As seen in the $211.7 billion spent online during the 2022 holiday season, consumers increasingly gravitate toward frictionless shopping experiences that integrate multichannel options. The lesson for 2024? You need to be everywhere your customers are.

1. Omnichannel Isn’t Just a Buzzword — it’s a Necessity

Seamless omnichannel strategies are essential for retailers during the holiday season and crucial for long-term growth. Retailers that meet their customers across multiple channels — online marketplaces, direct-to-consumer (DTC) platforms, brick-and-mortar stores, and social commerce — enjoy higher sales volumes and better customer retention. It’s no longer enough to have a strong online presence; retailers must also integrate their backend operations, ensuring inventory is synced across platforms and orders are fulfilled quickly.

For instance, marketplaces like Amazon.com remain a critical component of retail growth. In fact, half of all product searches begin on Amazon, and during peak seasons marketplaces help manage the influx of orders while reducing the strain on internal fulfillment systems. However, retailers must carefully balance marketplace selling with DTC operations to retain control over branding and customer relationships.

2. Simplifying Operations is Key to Handling the Surge

The complexity of e-commerce operations skyrockets during the holiday season, making streamlined processes essential for managing the surge. Automation is the answer to navigating challenges like shipping, returns and inventory management. The ability to predict demand, optimize warehouse management, and easily handle returns will separate successful retailers from those overwhelmed by the rush.

For example, retailers can use data-driven insights to monitor inventory levels, minimizing stock-outs during the busiest time of the year. Automation becomes vital to streamlining fulfillment and reducing errors as shipping volume increases. Additionally, simplifying return policies can foster customer loyalty and future sales, especially given that 72 percent of customers place significant importance on clear return policies when purchasing during peak season.

3. The Customer Experience Remains the Ultimate Driver

Customer experience is a key driver of retail success, particularly during peak shopping periods. Consumers expect personalization, convenience, and frictionless checkout experiences, with 97 percent of American shoppers reporting that they have abandoned a purchase due to a lack of convenience. Retailers can meet these expectations by providing tailored recommendations, click-and-collect options, and flexible delivery services that cater to the needs of today’s busy shopper.

For example, social commerce is growing rapidly, offering retailers new opportunities to reach customers directly on platforms like Instagram and TikTok. These channels provide the ultimate blend of personalization and convenience, encouraging impulse purchases and creating deeper connections with shoppers. During the holiday season, social commerce can serve as a powerful tool to engage new customers and drive additional revenue.

Preparing for 2024: Strategies for Success

As peak season nears, retailers must adopt these strategies and finalize their preparation early. And don't overlook the importance of being proactive: locking in campaigns, securing inventory, and analyzing historical data are critical for optimizing performance. A well-oiled omnichannel strategy that integrates operations across multiple channels will ensure that retailers can meet demand, provide superior customer experiences, and capture their share of the holiday rush.

Georgia Leybourne is chief marketing officer of Linnworks, an e-commerce inventory and order management software provider.