Holiday plan for e-commerce companies

ABSTRACT

The OSA market will continue to grow and will reach an impressive value of $11.6 billion by 2034

The holiday season is a unique opportunity for e-commerce businesses to increase sales and keep customers happy.

Forecasting demand, leveraging technology and effectively managing holiday promotions can help e-commerce businesses thrive

As consumers around the world adopt e-commerce businesses, OSA has become extremely critical in current and future online markets. The latest numbers from Future Market InsightsIt is estimated that by 2024, the global market for on-shelf availability solutions will reach a desired value of USD 4.8 billion.

Analyses show that this market is set to grow to a staggering $11.6 billion by 2034, implying a healthy CAGR of 9.1% over the forecast period. These numbers explain the growing need for OSA management as e-commerce companies strive to deliver what consumers want, especially during holiday seasons like this one.

On the one hand, the holiday season is a unique opportunity for e-commerce organizations to increase sales and customer satisfaction. However, with increasing demands comes the issue of availability – having the right product at the right time and place.

OSA is important during this time of year because stock-out situations mean no sales, unhappy consumers, and a loss of brand loyalty. For e-commerce businesses preparing for the holiday season, here’s the ultimate guide to improving on-shelf availability.

Demand forecasting and inventory planning

Accurate demand forecasting is essential for high OSA during the holiday season. E-commerce companies must analyze historical sales data, market trends, and competitor behavior, as well as consider potential events, holidays, and promotions that could drive demand. The use of analytics and artificial intelligence can significantly improve these forecastsensuring that inventory levels are in line with expected demand.

Inventory planning should be done in conjunction with demand forecasting, taking into account supply chain disruptions, supplier capabilities, and lead times. While it is advisable to stockpile frequently sold products, companies should avoid overstocking to minimize holding costs and prevent off-season price reductions.

Strengthening relationships with suppliers

The holiday season is one of the important times when suppliers need to deliver on their commitments at a high level. E-commerce companies need to clearly communicate to their suppliers the demand they expect in the future to ensure they have the required capacity to meet such demands.

Loyal relationships with suppliers mean that the company will receive special treatment, including priority regarding which stocks need to be replenished and the time it will take to replenish them. In addition, the risk of supply chain disruptions can be addressed by expanding the list of suppliers. This means that if one supplier is unable to supply essential products, having other sources available can help minimize the risk of stock-outs.

Using technology to manage inventory in real time

Organizations need to hire real-time inventory management systems to maintain OSA during the celebrations. These systems facilitate the monitoring of stocks across various outlets and stores, giving a clear picture of stock status. These systems can then be linked to e-commerce to automatically update stock status, ensuring that customers do not get the wrong impression of what is available in stock.

In addition, real-time inventory means that inventory management decisions must be made in a short time frame. In cases where a particular product sells much faster than expected, automatic reordering or stock transfers must be called for in anticipation of a popular item.

Optimization of order fulfillment and logistics

The idea of ​​smooth order fulfillment and logistics is key to maintaining OSA during the holiday season. Fulfillment centers should be evaluated and possibly changed to ensure products are picked, packed, and shipped as quickly as possible. This could involve streamlining warehouse processes, hiring more staff, or outsourcing additional freight.

Another important element to consider is the last mile delivery. Reducing costs and increasing delivery reliability can be achieved by choosing reliable courier services and providing customers with multiple delivery options, and they can also help minimize stockouts. It can also be suggested to adopt a distribution center strategy, which means warehousing closer to certain key markets to reduce lead times and increase OSA.

Dynamic pricing and promotion management

In the case of OSA, especially during the holiday season, pricing and promotional strategies can play a big role. It is recommended that e-commerce companies implement dynamic pricing models as a way to control demand, especially when the retail price can be changed based on existing sales data and available inventory.

For example, if a product is moving very quickly, some price increases can be implemented to regulate demand and shortages. Promotions also need to be carefully defined and controlled. Although the use of discounts and special offers promotes products, it also contributes to stock-outs. Promotion decisions should be made with inventory levels in mind, and companies should offer substitute options or package slow-moving products with top sellers to ensure equal sales of all inventory.

Improving customer communication

It has been shown that customers should be clearly informed in advance when OSA is in use during the holiday season. If a product is unavailable or lost, it is important to inform customers to prevent disappointment. Therefore, disclosing the availability of similar goods, offering a pre-order option or offering notifications when stock is back in stock also helps to retain customers who might switch suppliers.

Additionally, businesses should use customer information to engage with them. customers in subsequent purchases and remind them of potential products they have purchased in the past or have identified with. This not only improves the buyers’ experience but also creates demand for the products available in the market.

Post-season analysis and continuous improvement

After the holiday season, conducting a thorough performance review based on OSA KPIs is essential. Companies should assess areas of success and identify opportunities for improvement. Key metrics to evaluate include stock-outs, replenishment times, and demand forecast accuracy. The insights gained from this review should be used to improve processes, strengthen supplier relationships, and streamline inventory management during future periods of high demand.

Maintaining availability during the holiday season is a difficult but necessary process for many e-commerce businesses. By forecasting demand, building relationships with suppliers, being able to manage inventory in real time, choosing the best fulfillment options, using dynamic pricing options, being able to communicate effectively with customers, and analyzing data after the season, businesses can increase sales while providing a good shopping experience for consumers. These strategies help not only survive the holiday season, but also excel during it.