New data: ecom shipments double on Black Friday as retailers struggle with peak-season capacity crunch

• nShift data finds ecommerce shipments doubled on Black Friday 2024, while post-Christmas returns spiked 50% on 27 December
• Yet a pre-Christmas delivery capacity crunch and inefficient returns eroded profits for many retailers
• Busy peak season shows importance of deliveries for ecommerce success

nShift shipments and returns data from Black Friday to the end of December 2024 illustrate the intense demands placed on brands’ and retailers’ delivery capabilities during the year’s busiest shopping season.

According to data compiled by the global leader in delivery and experience management, retailers sent out nearly twice as many packages on Black Friday (29^th November) compared to an average Friday in 2024 (98% increase). On Cyber Monday (2^nd December), shipments were 57% higher than the average Monday.

Meanwhile, returns peaked sharply on 27^th December, similar to previous years, as consumers rushed to return unwanted Christmas gifts. The number of returns on 27^th December increased by half (49%) compared with an average Friday. However, returns during the week after Christmas actually fell 15% compared with the same period in 2023.

nShift’s data illustrate the importance for retailers of last-mile strategies which can flex around customer demand and do not depend on a single carrier. A lack of capacity during 2024’s peak season led to carriers suddenly cancelling deliveries or sharply increasing delivery charges – denting retailers’ profits and impacting their brand reputation in the process.[1] [2]

Despite a slight reduction compared to Christmas 2023, returns continue to be a headache for retailers. Retail Week/nShift research has found that over half of shoppers would buy again from retailers with simple returns policies. However, returns also risk eroding the profits of retailers unable to process them efficiently.

Mattias Gredenhag, CTO of nShift, said: “Retailers enjoyed bumper sales during 2024’s peak season. But many are not seeing the profits they might have expected. Nothing is more frustrating for brands and retailers than not being able to capitalize on spikes in demand – whenever they occur. Addressing delivery capacity is key to solving that perennial challenge.

“Retailers must ensure they have the carrier connections in place to absorb a sudden doubling in order volume. They also need to digitize the post-purchase experience, including returns, so they offer the best customer experience, cut handling costs, and get items back on shelves quickly. Effective teamwork between logistics and ecommerce, backed by the right software solutions, can help deliveries become part of retailers’ growth engine in 2025.”

The nShift suite of solutions combines the best aspects of delivery management with customer-facing applications. Our carrier network consists of over 1000 carriers, enabling retailers, vendors and warehouses to operate an end-to-end delivery process from checkout to returns.

END

[1] https://www.thesun.co.uk/money/32238436/customers-parcel-firm-yodel-furious-delays-christmas-presents/

[2] https://supplychaindigital.com/logistics/black-friday-shipping-costs