London, October 25, 2023 /PRNewswire/ — The right delivery management software helps create the agility and flexibility that e-commerce businesses need to thrive
It looks like this year’s Black Friday will be as big as ever, and is expected to surpass global sales 40 billion dollars On November 24th.[1] But just because the day itself is destined to be a success, doesn’t mean every individual retailer can guarantee a profit, he warns. nShiftthe global leader in package delivery management software.
From cutting margins too aggressively with excessive discounting, to running the risk of absorbing cost on countless returned items, a number of factors can eat into profits during peak periods.
nShift created a list of five strategies to maximize profits on Black Friday:
- Keep customers coming back for more – Retailers should not focus solely on the “share of wallet” they can secure from a customer on Black Friday. They need to consider the “life share” they can secure by building loyalty with long-term shoppers. To do this, they need to focus on providing the best possible customer experience throughout the entire order lifecycle, and not rely on deals and discounts alone.
- Upgrading and remarketing activity – Customers are more likely to open delivery update messages than other marketing communications. This makes delivery communications a powerful digital marketing channel for retailers who are able to leverage it
- Stopping returns kill profits – One in three items purchased on Black Friday are quickly returned.[2] However, running the right returns solution can convert 30% of returns into exchanges. It can also help facilitate the right returns policy, for example by encouraging customers to make returns and exchanges in store, increasing footfall.
- Ensure delivery capacity – Three-quarters of shoppers will abandon a retailer because of poor delivery service.[3] But at peak times, it can be difficult to ensure there is enough bandwidth to meet increased demand. Retailers and warehouses must expand quickly, which may involve using a wider range of carriers
- Reduce abandoned shopping carts – About 80% of baskets are given away on Black Friday.[4] Offering the right range of delivery options can increase conversion by 20%
Sean Sherwin SmithPost-Purchase Product Manager at nShiftsaid: “Black Friday on November 24 is once again expected to be a sales record. E-commerce merchants and multi-channel retailers should position themselves to benefit from increased traffic. But they cannot assume that their activities will automatically be profitable.
“Using the right delivery management software gives retailers and warehouses the flexibility to quickly scale the range of carriers they use to ensure transportation capacity. These increased delivery options at checkout also give customers the choice they expect – helping to reduce shopping cart abandonment.” Communicating with Customers The last mile opens up all kinds of new revenue opportunities for retailers, and by digitizing revenue, they can transfer revenue to exchanges – protecting revenue and profits.
Visit nShift’s Black Friday hub for more tips on making the most of Black Friday, Cyber Monday, and the Christmas shopping season: https://nshift.com/black-friday
About N Shift
nShift is the leading global provider of cloud delivery management solutions that enable seamless shipping and returns of nearly 1 billion shipments across 190 countries annually. nShift is used globally by e-commerce, retail, manufacturing, and 3PL shipping companies. The company’s headquarters is located in London And Oslo. It has more than 500 employees in its offices Sweden, Finland, Norway, Denmark, United kingdom, Poland, Holland, Belgium And Romania.
[1] https://www.wunderkind.co/blog/article/3-key-projections-for-cyber-week-2023-how-retailers-should-prepare/
[2] https://www.motesque.com/black-friday-2022-sales-hit-a-new-record/#:~:text=Returns%20happen%20partcularly%20after%20the%20week%20of%20Black%20Friday&text= In%20other%20words%2C%201%20in,%20%20back%20to%20store is sent.
[3] https://www.logicsmanager.com/three-quarts-of-consumers-will-abandon-retailers-over-poor-delivery-service/
[4] https://www.statista.com/statistics/1377689/black-friday-cart-abandonment-rate/#:~:text=On%20and%20around%20Black%20Friday,%2C%20however%2C%20at%2077.74 %20 percent
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