Festive Season eCommerce Shipping Challenges & Solutions

The festive season is a huge deal in India. As you know, most individuals exchange gifts and celebrate merry times, starting right from Navratri until the New Year. Even though the festivities go around in India all year, this period between September and December sees the most hike in retail. Therefore, the sudden surge in demand brings several challenges in logistics and delivery. Often, sellers cannot live up to the buyer’s expectations and face a lot of backlash. To overcome this problem, you must identify and counter the underlying issues with a practical solution.

Here, we have compiled a list of eCommerce shipping challenges during the festive season that can lead to delays in delivering orders. Let’s dive into it and get started. 

Festive Season Demand

Recent findings reveal a marked rise in consumer spending, with increased purchases of everything from cars to cosmetics. As the festive season approaches, e-commerce companies are preparing for significant growth.

Even after the Covid-19 pandemic, eCommerce has seen positive growth as many new shoppers have shifted to online shopping for immediate purchases. As the demand for online shopping is high this year, you can expect a good turnout compared to previous years.

Consumer demand has noticeably shifted, with a greater emphasis now on work-from-home essentials such as laptops, mobile devices, and other related products rather than traditional luxury items. This change reflects the growing adaptation to remote work environments and the evolving needs of consumers. As eCommerce continues to expand with digitisation, businesses increasingly depend on organised logistics and reliable shipping solutions to meet customer expectations. 

With the festive season approaching, it’s crucial to recognise and prepare for the various shipping and delivery challenges that could potentially impact your business. Addressing these challenges proactively will help ensure a smooth and successful holiday sales period, allowing you to meet customer demands effectively and maintain a strong reputation in the market.

Festive Season eCommerce Shipping & Delivery Challenges

Here are a few logistics and shipping challenges in the festive season that online retailers face during the festive season:

Why Does Festive Rush and Expedited Delivery Become a Challenge?

During the festive season, eCommerce sellers face the considerable challenge of managing the rush of orders and meeting the demands for expedited deliveries. The holiday period often brings a surge of last-minute shoppers who expect their purchases to be delivered almost immediately, whether the same day or the next. Failing to offer these speedy delivery options can lead to frustrated customers and, ultimately, a loss of business. Therefore, not providing same-day or next-day delivery can be a considerable challenge and lead to losing consumers.

To handle the challenges faced by eCommerce businesses in festive seasons caused by the shopping rush and expedited delivery demands, you can:

1. Stock Up Early: Maintain ample inventory, especially for popular items, to avoid delays.
2. Multiple Delivery Partners: Work with several reliable couriers to offer same-day and next-day delivery options.
3. Route Optimisation: Use tools to optimise delivery routes, speeding up the process.
4. Encourage Early Shopping: Offer discounts or free shipping for early purchases to spread out demand.
5. Provide Flexible Shipping Options: Offer a range of shipping choices to meet customer needs and preferences.

These strategies can help ensure smooth operations, maintain customer satisfaction, and avoid losing sales during the festive season.

How Does Irregular Cash Flow Impact Sellers During Festive Season?

Managing cash flow can become particularly challenging during the festive season, especially with the added pressure of expedited deliveries and dealing with courier companies. Since India depends primarily on the cash-on-delivery payment mode, tracking the remittance and maintaining a steady cash flow during a high volume of orders can be difficult. In such cases, you must contact companies that provide you with one or two-day COD remittance so you can process your orders continuously. 

To manage irregular cash flow during the festive season, especially with high volumes of COD orders, consider these solutions:

1. Partner with Quick Remittance Services: Choose courier companies that offer one or two-day COD remittance to maintain a steady cash flow.
2. Automate Cash Flow Tracking: Use financial management software to quickly monitor payments and spot discrepancies.
3. Maintain a Reserve Fund: Create a reserve fund to cover operational costs in case of payment delays.
4. Negotiate Better Payment Terms: Work with payment processors for shorter remittance cycles or better terms for high-volume transactions.

These steps can help keep your business financially stable during peak sales periods.

Why Is Secure Shipping Essential During Festive Season?

When many orders are for high-value items, ensuring that products reach customers safely and without loss or damage becomes paramount. With the surge in delivery volumes and a limited number of logistics providers, there’s an increased risk of packages getting lost or damaged in transit.

To ensure the safe delivery of high-value and fragile items during the festive season:

1. Partner with Reliable Logistics: Choose providers with a strong track record for handling peak season volumes without compromising quality.
2. Security Coverage: Secure comprehensive security to protect against losses or damages.
3. Protective Packaging: Use durable materials to safeguard fragile items like glassware or ceramics.
4. Real-Time Tracking: Monitor shipments to address any issues quickly.
5. Clear Communication: Keep customers informed about shipping times and potential delays.

How Does Improper Tracking Affect Deliveries?

With the surge in order volumes and the increased expectation for quick delivery during the festive season, offering your customers a robust real-time tracking experience is essential. Given the increased workload on courier companies, the absence of detailed tracking can become a significant challenge.

To ensure effective real-time tracking during busy periods, implement these solutions:

1. Upgrade Tracking Systems: Use advanced technology for detailed shipment updates, accurately informing customers.
2. Automate Notifications: Set up automated SMS, email, or app alerts to provide regular order status updates.
3. Integrate Systems: Ensure seamless data exchange between your e-commerce platform and courier services for accurate tracking.
4. Dedicated Support: Have a support team to quickly address tracking inquiries and resolve issues.
5. Optimise Partnerships: Work with couriers to manage increased volumes and resolve tracking issues promptly.

By implementing these solutions, you can improve and effectively manage the increased demand during the festive season.

Why Is Safe Delivery Still Important Post-Pandemic?

In the post-COVID era, ensuring safe delivery remains a top priority as customer expectations for hygiene and safety remain high. Although the pandemic’s most intense phases may be behind us, the emphasis on contactless and sanitary delivery practices endures. You need to maintain these practices to protect both customers and staff.

To maintain safety, boost customer confidence, and support a smooth delivery process, follow these tips:

1. Contactless Delivery: Implement contactless delivery to minimise direct interaction and reduce risk.
2. Hygiene Protocols: Ensure delivery staff follow strict hygiene practices, including hand washing, using sanitisers, and wearing masks and gloves.
3. Training: Regularly train your team on safety protocols to ensure compliance.
4. Customer Communication: Communicate your safety measures to reassure customers.
5. Technology: Tracking systems are used to keep customers updated and reduce contact.
6. Package Sanitisation: Sanitise packages where possible before delivery.
7. Flexible Options: Offer flexible delivery times and pick-up options to match customer preferences.

How Can Sellers Handle a Surge in Order Volume?

Another significant issue during the festive season is the inability to handle the sudden surge in order volume. As more customers place orders, managing the increased demand becomes increasingly challenging for businesses. During the festive season, sellers typically experience a significant rise in order volume, increasing nearly 40%.

To manage increased inventory and ensure timely delivery during the festive season, focus on these key strategies:

1. Centralised Inventory Management: Track stock across all fulfillment centers to maintain accurate real-time data and prevent stockouts.
2. Enhanced Forecasting: Use forecasting tools to predict demand accurately and adjust inventory levels accordingly.
3. Automated Reorder Alerts: Set up alerts for low stock levels to reorder items promptly and avoid running out.
4. Streamlined Order Processing: Optimise workflows to handle higher volumes efficiently, improving packing and order accuracy.
5. Multiple Fulfillment Centers: Utilise strategically located fulfillment centers to reduce shipping distances and speed up delivery.

Why Do Returns and RTOs Increase During Festive Season?

During the festive season, many deliveries are time-sensitive, which increases the likelihood of return orders and non-deliveries. The heightened demand and pressure to meet delivery deadlines can lead to delays and complications in shipping. Therefore, you must be prepared to tackle non-delivery challenges and take action in minutes to avoid further delays.

You can effectively manage increased returns and non-deliveries during the festive season by focusing on these strategies:

1. Strategic Inventory Placement: Store products closer to your customers to minimise shipping times and reduce delays.
2. Enhanced Tracking and Notifications: Keep customers informed with regular updates via emails, SMS, and custom tracking pages.
3. Optimised Logistics Planning: Work with shipping partners to ensure timely deliveries and address potential delays.
4. Efficient Handling of Returns: Implement a streamlined process for handling returns to quickly resolve issues and maintain customer trust.

All-in-One Practical Solution to These Challenges: Shiprocket

Partnering with a shipping service like Shiprocket is a practical solution to these eCommerce shipping challenges during the festive season. With its range of benefits, Shiprocket can help you navigate festive season complexities effectively. It provides shipping security of up to Rs. 5000 in case of damaged or lost goods, ensuring your shipments are protected. 

Shiprocket offers automated tracking updates via email and SMS at every delivery stage, keeping you and your customers informed. The Early COD program is another advantage, allowing quick COD remittance within one or two days after delivery. These features can significantly enhance your shipping process and help you address common issues during the busy festive season.

Shiprocket Fulfillment also lets you store your products ahead of time in fulfillment centers across India, including locations in Mumbai, Delhi, Gurugram, Kolkata, and Bengaluru. This lets you keep products closer to your customers, reducing delivery times and costs. It significantly enhances customer satisfaction during one of India’s most critical retail periods.

Conclusion

Shipping and logistics can be a significant challenge if not handled properly. It’s a good idea to let the experts handle these tasks to keep up with the holiday rush. If you do well during the festive season, you’ll leave a lasting impression on your customers.

In that case, there is a big chance that your customers will visit your store next year and during other festive opportunities. Therefore, analyse the challenges your business faces so that you can overcome them with practical solutions. We wish you all the best and a happy festive season!