Losing revenue this peak? Here’s how to turn it around

It’s peak shopping season, which usually means one thing: a swathe of orders, new customers, and revenue ticking up. But for many retailers, the reality isn’t always as smooth (and if they tell you any different, they’re telling you a ‘peak’ of lies). If you’re finding that peak season is more of a peak headache - with revenue slipping and fulfillment issues piling up - you’re definitely not alone. Many retailers face the same pitfalls, from inventory nightmares to soaring operational costs.

In fact, recent trends indicate that this period isn't always the financial boon it's expected to be. In the UK, a significant number of retailers have reported challenges during peak times. For instance, a study revealed that 99% of retailers admitted to losing at least £10,000 of revenue due to unsold stock each quarter, highlighting the impact of overstocking and inventory mismanagement. 

And according to RetailEconomics, a third of consumers intend to embark on festive shopping and gift purchasing earlier than normal this year - which means if you’re not prepared, you’re likely to lose revenue - and fast. Based on this, let’s get into some of the common challenges and, more importantly, how fulfilmentcrowd can help you turn things around.

The cost of a poor peak season

Before we jump into the solutions, let’s get real about what’s at stake. A peak season that doesn’t hit the mark can be costly, not just for profits, but also for customer relationships and brand reputation. Here are some of the biggest costs of a lacklustre peak season:

• Missed revenue opportunities: Shoppers are ready to spend, but if you’re not equipped to handle demand, those sales go to the competition.
• Rising operational costs: The costs associated with last-minute solutions can add up quickly, especially if you’re scrambling to fix problems rather than preparing for them.
• Damage to customer loyalty: Customers expect smooth, fast, and reliable service. If peak season lets them down, they may not come back for more.

Luckily, there are ways to regain control. Below, we’ll break down some of the most common issues and how to turn things around.

Rising operational costs: Trimming the fat without trimming the service

It’s no secret that peak season can stretch your budget. But if rising operational costs are eating into your revenue, it’s time to take a closer look.

The challenge:

• Last-minute fixes: High demand leads to quick, often costly fixes. While they work in a pinch, they’re not sustainable.
• Labour costs: Bringing in extra hands for peak season is essential, but without the right strategy, it can become a strain on resources.

The solution:

At fulfilmentcrowd, we know a thing or two about keeping costs in check without compromising on quality. Our flexible fulfillment network allows you to adjust resources to meet demand, only using what you need. And because our systems are designed for efficiency, you’ll save on labor costs while keeping operations running smoothly.

Top tip: Bulk shipping discounts are a great way to maximize savings. By shipping in bulk through fulfilmentcrowd, you’ll get the same speed and reliability but at a fraction of the price. Consider it our gift to your budget.

Ineffective marketing campaigns that waste time and budget

Marketing campaigns can be hit or miss, especially when everyone’s competing for attention. If your campaign isn’t pulling in the crowds, you may need to rethink your approach. This is especially important during peak periods, such as Black Friday and Cyber Monday.

The challenge:

• Over-reliance on discounts: While discounts can draw people in, they’re not always the most effective way to boost revenue.
• Missed targeting: With the wrong target audience, even the best offers will fall flat.

The solution:

Consider focusing on your unique selling points beyond discounts. Emphasizing speed, reliability, and great service - key attributes you can achieve with fulfilmentcrowd’s support - can help set you apart. Using real-time data and analytics, we help you understand who’s buying what, so your marketing campaigns hit all the right notes.

Top tip: Our real-time data can provide an inside look at trends and demand, helping you market to the right people, at the right time, with the right message. And don’t forget to promote speed and reliability - two things your customers value highly, especially in peak season.

Inventory mismanagement: Don’t let stock shortages steal your sales

Inventory can make or break your peak season. Too much stock and you’re left with piles to move after the season; too little and you’re missing out on sales.

The challenge:

• Overstocking or understocking: It’s all about finding the right balance, but it’s easier said than done.
• Stockouts: Nothing frustrates a customer like finding their favorite item out of stock during peak season.

The solution:

With fulfilmentcrowd, you can predict demand and keep stock levels just right. Our software provides insights into buying patterns and trends, helping you maintain optimal stock levels. And if something is flying off the shelves faster than anticipated, our flexible warehousing means you can restock without scrambling for space.

Top tip: Check last year’s data, anticipate trends, and have a backup plan for your most popular products. Our inventory planning tools make this easier than ever.

Customer service issues: turning complaints into compliments

Customer service can be a make-or-break aspect of peak season. When customers have questions or concerns, they want fast, friendly help. But if your customer service isn’t up to par, you risk losing them.

The challenge:

• High volume of inquiries: More sales mean more questions, from delivery updates to return policies.
• Long wait times: Customers expect quick responses, especially during peak periods.

The solution:

Our fulfillment system is equipped to send real-time updates and notifications, keeping customers informed at every stage. This not only reduces the number of inquiries, but also builds trust. Plus, our returns portal makes it easy for customers to handle returns on their own, freeing up your customer service team for more pressing issues.

Top tip: Automated alerts let customers know exactly where their order is, reducing the “Where’s my order?” enquiries. And when you do get questions, a well-prepared team - backed by fulfilmentcrowd’s support tools - can handle them with ease.

Returns management

Returns are an inevitable part of retail, especially after peak season. But if not handled well, they can become a logistical nightmare.

The challenge:

• High return volumes: Customers buy more during peak season, and they return more, too.
• Costly reverse logistics: Processing returns can be expensive, eating into your profits.

The solution:

Our streamlined returns portal lets customers initiate returns with ease, and our efficient processing helps you get items back on the shelf in no time. Plus, by partnering with cost-effective couriers, we ensure that return shipping doesn’t drain your resources.

Top tip: Clear product descriptions, accurate sizing guides, and photos can help reduce returns and effectively manage bracketing, especially during peak season. But when they do come, fulfilmentcrowd’s returns portal will help you manage them seamlessly.

Turning things around with fulfilmentcrowd

While the challenges are many for peak season, each one has a solution that can help turn things around and maximize your revenue. fulfilmentcrowd’s solutions - from flexible warehousing to data-driven insights - are designed to keep you competitive, efficient, and ready for whatever peak season throws your way. Let’s get you back on that winning peak!

To make things even easier, download our Preparing for Peak Checklist. It’s packed with actionable tips to help you stay on top of fulfillment, customer service, returns, and everything in between. Because when it comes to peak season, preparation is everything!