5 Tips to Prepare for the Holiday Rush
Over the past two years, retail spending has increased over 14 percent. It is partly due to consumers wanting to return to their pre-Covid lives, returning to stores to shop, and the influx of money from the government giving them extra money to spend. So, with the continual rise of Ecommerce and shopping trends alongside supply chain delays, will there be enough inventory for the holiday season? Here are some tips to help you prepare for the holiday season.
1. Increase Inventory
With shipping delays it is important to stock up now, to ensure you have the products available as the orders come in. Look at past reports to see what items sell well during the holiday season and be sure to stock up on those popular items.
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2. Entice Customers to Shop Early
In order to combat the holiday shopping rush, businesses will want to start enticing shoppers to get their holiday shopping done now instead of waiting to the last minute. Setup email campaigns to go out to current customers and setup social media posts to run throughout the holiday season. Product specific discounts can be offered for the popular items you know you have available. Or offer weekly discounts to get customers to return multiple times to your store. If your inventory is running short, you can offer discounts on gift cards. It gets a new set of customers to your brick and mortar or online stores and hopefully they will be shopping at a time when you have higher inventory levels.
3. Hire Seasonal Workers Now
Hire temporary workers early now to ensure you have enough staff to fulfill the influx of orders. Especially, if you are offering discounts early, you should start seeing an increase of orders come in. Also, this will give time for new workers to get trained on the systems and processes.
4. Plan Picking Paths
Through your Warehouse Management System (WMS) you can group or wave orders by different criteria such as shipping times, destination, customer, and product characteristics to give pickers the most efficient path through the warehouse. This also allows you to prioritize those orders that require a quicker turnaround time to get them out the door faster. Are your most popular items located near the shipping stations and doors, or are they at the back of the warehouse? Make sure your inventory is stored in a manner conducive to a productive picking path. While this is basic, many warehouses are not organized properly for the seasonal nature of many products. Velocity changes!
5. Setup Packing Stations
Do you need to setup additional packing stations? Make sure you have enough stations to accommodate the flux of product shipment and that these stations are fully stocked with packaging supplies.
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Frequently Asked Questions
How far in advance should I start hiring seasonal workers?
You should start hiring seasonal workers at least 6-8 weeks before peak holiday season begins. This timing allows adequate time for recruiting, interviewing, and onboarding new staff. Early hiring also provides sufficient training time so temporary workers can learn your systems and processes before order volumes surge.
What percentage of inventory increase should I plan for holidays?
Plan for a 20-40% inventory increase based on your historical holiday sales data and current market trends. Review last year’s sales reports to identify your best-selling holiday items and stock accordingly. Consider that retail spending has grown 14% recently, so factor in potential demand growth beyond your normal seasonal patterns.
How do I determine the right number of packing stations needed?
Calculate packing station needs by analyzing your expected daily order volume during peak periods and dividing by each station’s processing capacity. Consider your current station output, anticipated order surge, and staff availability. Most businesses need 30-50% more packing capacity during holidays compared to regular seasons.
What early bird discount strategies work best for holiday preparation?
Offer tiered discounts that increase urgency, such as 20% off in October, 15% in November, and 10% in December. Weekly flash sales on different product categories keep customers returning regularly. Gift card promotions with bonus value work well when inventory runs low, driving future sales during restocked periods.
How can warehouse layout optimization impact holiday order fulfillment speed?
Proper warehouse layout can improve picking efficiency by 25-40% during busy periods. Place your fastest-moving holiday items closest to packing stations and shipping areas. Use your WMS data to identify seasonal velocity changes and reorganize accordingly. Efficient picking paths reduce travel time and allow faster order processing when volumes peak.
