By: Greg Hewitt, CEO of DHL Express U.S.
As we approach the 2024 holiday season, businesses—particularly small and medium enterprises (SMEs)—must prepare for a time of both heightened opportunity and potential challenges. The National Retail Federation expects consumers to spend 2.5% to 3.5% more this holiday season than they did last year.
To succeed during this critical period, companies need to be aware of key trends, anticipate shifts in consumer behavior and equip themselves to handle increased demand. By focusing on flexibility, operational readiness and customer satisfaction, businesses could find great success while mitigating risks. Here’s what businesses need to know to ensure a successful holiday season.
Prepare for increased demand and flexibility in operations.
The holiday season, especially during events like Black Friday and Cyber Monday, brings a significant surge in e-commerce activity. In fact, based on my company’s internal data, we forecast a volume increase of over 40% compared to regular operating days, with peak days like December 23 expected to see a 50% rise in shipments.
To handle this surge, businesses need to ensure their supply chains can flexibly scale up operations. Whether it’s managing inventory, scheduling extra delivery fleets or hiring additional staff, operational flexibility will be key to meeting customer expectations.
Monitor global supply chain challenges.
Supply chain disruptions can create headaches during peak season, and businesses must stay ahead of potential issues. From unpredictable weather patterns to last-minute changes in consumer behavior, external factors can lead to capacity constraints and delays.
Businesses should closely monitor their supply chains and work with logistics providers who can offer agile solutions, such as additional shipping capacity or alternative transportation routes. Leaders should engage in regular dialogue with logistics partners to understand emerging risks and align on contingency plans. Emphasizing real-time data sharing can also improve responsiveness and make adjustments easier as conditions evolve.
To be able to adapt quickly to unexpected changes while maintaining high levels of service quality, businesses should also cultivate a network of reliable providers and consider diverse transportation options.
Focus on customer experience and communication.
Today’s consumers have high expectations, particularly during the holiday season when timely delivery and seamless experiences are essential. A recent survey from Radial reveals that 29% of consumers now anticipate receiving holiday orders within two to three days.
Businesses must prioritize clear communication, especially around shipping deadlines, delivery delays or potential stock shortages. Providing transparency and offering customers multiple delivery options—such as expedited shipping or flexible return policies—can go a long way in building trust and retaining loyalty.
Additionally, SMEs should take a proactive approach to managing customer stress during this busy time. Offering responsive customer service, including access to support channels like live chat or social media, can help mitigate frustration and enhance the overall shopping experience.
Leverage e-commerce and international growth.
Despite global economic challenges, many SMEs remain optimistic about the potential for e-commerce growth during the holiday season. In fact, many of the companies in my company’s 2024 E-Commerce Survey expect their e-commerce sales to increase year-over-year, with social commerce expected to reach approximately $2 trillion by 2025. Moreover, international growth presents a significant opportunity, with markets like the EU, UK, Mexico and Canada offering new customer bases for businesses to tap into.
Diversifying into international markets not only opens revenue streams but also helps businesses spread risk by reducing reliance on one region. Companies should consider adjusting their marketing strategies to target international audiences and ensure they are prepared to navigate cross-border logistics and compliance.
Incorporate sustainable solutions.
Sustainability is becoming increasingly important to consumers, especially during the holiday season when shopping spikes. Another recent study from my company found that 59% of U.S. online shoppers consider sustainability “very” or “quite” important. This presents a unique challenge during peak season, when businesses must manage heightened demand while aligning with consumer values.
By offering transparency around sustainability efforts and providing greener packaging and delivery options businesses can differentiate themselves in a crowded market. During the holidays, when shipping volumes soar, incorporating sustainable practices not only supports the environment but also strengthens customer loyalty, as consumers gravitate towards brands that reflect their values.
Stay agile in a volatile environment.
The holiday season is filled with unpredictability, from sudden changes in consumer demand to supply chain disruptions. Businesses must remain agile and ready to pivot when needed. Partnering with logistics providers that can offer scalable solutions, such as additional aircraft or trucking rotations, will be vital to staying on top of fluctuating volumes.
In a rapidly changing market, businesses need to be ready for anything—whether it’s higher-than-expected volumes or global trade volatility. By staying informed, prepared and adaptable, companies can make the most of the holiday season and position themselves for long-term success.
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