Scaling Quickly: Behind The Black Friday Scenes
How Online Distribution helps merchants navigate peak volumes in New Zealand
As retailers across the globe strategise their promotional and marketing activities in preparation for the busiest shopping period of the year, successful ecommerce merchants are dedicating equal focus to supply chain planning. While Black Friday / Cyber Monday brings a significant revenue opportunity, it also serves as a chance to strengthen customer loyalty, attract new buyers, and establish regular shopping habits.
However, the pressure of concentrated sales peaks can risk undoing that hard-earned loyalty and frustrate would-be customers.
According to the 2024 eCommerce Sentiment Market Report by New Zealand Post, the number one frustration for online shoppers is encountering out-of-stock products. Other common pain points include delivery delays, difficulties with returns, and a lack of parcel tracking visibility.
With online retail spend in New Zealand reaching $5.8 billion in 2023 and the delivery experience influencing 14% of shoppers’ choice of retailer, it’s clear that logistics is just as critical as marketing and sales strategies. For merchants, an efficient and reliable distribution network during peak periods is essential for maintaining customer satisfaction and driving repeat business.
Common Constraints in Fulfilment and Logistics
The logistics landscape has faced significant challenges over recent years. The pandemic disrupted global supply chains and triggered labour shortages, making it difficult to secure warehouse staff and delivery drivers. As Black Friday approaches, the demand for temporary staffing surges. The critical question remains: Can your in-house operations or third-party logistics (3PL) provider source the necessary workforce to handle the flood of peak-period orders?
Compounding these issues, Black Friday sales are launching earlier each year, adding complexity. The 2024 season is no exception. Starting preparations too early can lead to under-utilised staff and resources, while launching too late risks overwhelming systems and customer service teams. Shipping delays also continue to strain supply chains, creating uncertainty around delivery times.
In this environment, the capability of your 3PL to navigate these variables can determine the success or failure of your Black Friday efforts. A well-prepared logistics partner will be able to scale their workforce, streamline warehouse operations, and ensure on-time deliveries to meet your customer expectations.
Online Distribution’s Strategic Preparations for Black Friday
At Online Distribution, 35 years of experience has taught us the importance of being well-prepared for peak periods like Black Friday/Cyber Monday. Our strong reputation as a supportive employer allows us to attract and retain skilled workers, both permanently and on a casual basis, which is crucial for managing the surge in demand that Black Friday brings.
We’ve also made strategic investments in our infrastructure. This year, we expanded our operations with a new facility in Auckland’s Highbrook Business Park, significantly increasing our capacity to handle increased stock and order volumes. This new facility not only expands our warehousing capabilities, but also enhances our operational efficiency, enabling us to scale up in line with our clients’ growing demands
At full capacity, our facilities can process over 20,000 orders per day. However, efficient order processing is just one part of the equation. Open communication with our clients is key to navigating the challenges of peak trading periods. We engage in strategic planning meetings with our clients well in advance, offering expert advice on managing the peak periods effectively.
This includes strategies such as balancing demand, simplifying packaging to streamline order fulfilment, and ensuring delivery promises are met or exceeded.
In a year where Black Friday may be more subdued, there’s a valuable opportunity for retailers to distinguish themselves. By partnering with a capable 3PL like Online Distribution, you ensure your logistics are as robust as your marketing efforts, turning potential challenges into opportunities for growth.
Online Distribution is a specialist eCommerce 3PL
Black Friday presents immense opportunities for retailers, but it also brings a unique set of challenges. With disruptions in the supply chain, labour constraints, and the need for timely preparation, the importance of a competent and reliable eCommerce 3PL provider cannot be overstated.
With Online Distribution’s dynamic approach and extensive experience in managing significant volume spikes, you have an expert partner ready to help you navigate this high-demand season. We don’t just navigate you through Black Friday; we future-proof your entire eCommerce delivery process.
Want to learn more about how we can support your business during peak periods and beyond? Contact us now to discuss.