From cutting margins too tightly with excessive discounting, to running the risk of absorbing the cost on countless returned items, a number of factors can undermine profits during peak periods. Using the right carrier management system and delivery order tracking software can help retailers get this right.
Here are five strategies to maximize profits on Black Friday
1. Keep customers coming back for more
Retailers must focus on delivering the best possible customer experience throughout the entire lifecycle of the order, and not rely on deals and discounts alone. The quality of the last-mile delivery is a crucial part of the customer experience.
2. Up selling and remarketing, using order tracking software
Customers are far more likely to open delivery update messages than other marketing communications. That makes delivery communications a powerful digital marketing channel for retailers.
3. Stop returns killing profits
One in three items bought on Black Friday are quickly returned. However, operating the right returns solution can convert 30% of returns to exchanges. Returns policies are not just about warehouse logistics. They can help build a better relationship with consumers.
4. Ensure capacity to deliver with enterprise shipping software
Three-quarters of shoppers will abandon a retailer over poor delivery service. But at peak times, it can be challenging to ensure that there is sufficient bandwidth to meet increased demand. Retailers and warehouses must quickly scale up, which may involve using a greater range of carrier companies. This requires the right delivery-management or carrier-management platform.
5. Reduce abandoned shopping carts
Protecting Black Friday profits with the right delivery-management software
Using the right delivery-management or carrier-management platform gives retailers and warehouses the flexibility to quickly increase the range of carrier companies they use to ensure transport capacity. These increased delivery options at checkout also gives customers the choice they expect, helping to reduce cart abandonment.
Visit our Black Friday hub for more advice about making the most out of Black Friday, Cyber Monday and the Christmas shopping season.