Urban and rural locations may encounter significant delays in holiday package deliveries
With the holiday season upon us, retailers are gearing up for increased demand and potential shipping challenges. Here's a round-up of the latest news and predictions:
FedEx is expected to see a boost in business this holiday season, following its decision to cut ties with Amazon. The United States Postal Service, on the other hand, anticipates delivering around 800 million packages between Thanksgiving and New Year's Day.
As consumers continue to prioritise quick and affordable shipping options, some may find deals on shipping services more appealing during the holiday season. However, fulfillment is becoming increasingly critical for retailers, with many stepping up their shipping options to compete with industry giants like Amazon.
Amazon, in response, has expanded its delivery fleet and hired 200,000 employees to help with peak season deliveries. Yet, the shipping carrier auditor LateShipment.com predicts that the average delay rate across the U.S. could reach or surpass 16.5% in some states, due to worsening weather and high demand.
Last year, 8.44% of shipments didn't reach their destination on time, according to a LateShipment.com report. This holiday season, retailers are advised to keep an eye on actions that can upset loyal customers and use predictive delivery tools to inform consumers ahead of time.
Communication with customers during the post-purchase phase can build trust, loyalty, and credibility, according to LateShipment.com. Customer engagement in the last mile of delivery, in particular, demonstrates a commitment to quality customer service.
However, densely populated cities and rural areas with limited connectivity may experience a higher rate of delivery delays. LateShipment.com suggests that early morning and overnight shipping options may perform worse despite their higher costs.
In major metropolitan areas where congestion and infrastructure constraints prevail, regions in the United States with dense populations and limited connectivity were expected to experience particularly high delivery delays in 2019.
Despite these challenges, retailers are recommended to focus on actions that can maintain customer loyalty during the holiday season. Amazon's Senior Vice President of Supply Chain, Dave Clark, tweeted that the company has "re-balanced capacity" and deliveries are running smoothly.
In conclusion, while the holiday season brings increased demand and potential shipping challenges, retailers are taking steps to improve their fulfillment processes and engage with customers to maintain loyalty.
