Ecommerce Boom during Holiday Places Pressure on Fulfillment
WWD | December 4, 2020
As major carriers, UPS, FedEx and DHL, put in place holiday shipping restrictions amid the COVID-19 e-commerce boom, the retail industry faces a so-called “shipageddon” that could impact customer loyalty and cost retailers money.
Shipping options and deadlines on most e-tail sites are being updated throughout the day; and, on Amazon, every minute. If shoppers are looking to mail gifts and packages themselves, the U.S. Postal Service, FedEx and UPS have a Dec. 15 deadline for a Christmas delivery.
Amy Shulman, global head of professional services at Sensormatic Solutions, said, “Though the concept of a ‘shipageddon’ is not new to the holiday shopping season, the associated travel restrictions and store closures due to COVID-19 have pushed parcel companies to their maximum capacity quicker than ever before.”
Shulman said for this holiday shopping season, fulfillment issues “mean the possibility of nearly 7 million packages a day being delayed between Thanksgiving and Christmas."
"Offering alternative fulfillment options like buy online, pick up in-store (BOPIS) or curbside pickup, retailers can help alleviate the strain on delivery systems. If anything, ‘shipageddon’ will push more last-minute shoppers, who may have missed tight shipping deadlines, to the store,” Shulman said.