Increased e-commerce on Black Friday requires improved shipping and logistics

December 2 2013

When it comes to Black Friday shopping, most people think about the mass hysteria that comes with 1 a.m. openings and "door buster deals." It is easy to see why this is the case, as it is the scene that nearly every news outlet plays B-roll footage of when talking about the busiest shopping season of the year.

However, many consumers avoided the hassle of getting to the mall and replaced it with online shopping. According to a report from Bloomberg, e-commerce spending on Black Friday increased 15 percent to set a record of $1.2 billion.

The article cites a study by ComScore Inc., which found the total amount spent online during the first 29 days of holiday shopping is $20.6 billion. That is an increase of 3.1 percent when compared to this time frame (November 1 through Black Friday) last year. On Thanksgiving alone, online purchases rose 21 percent to $766 million.

"While Black Friday — and now Thanksgiving Day — is the traditional kickoff to the brick-and-mortar holiday shopping season, both days continue to grow in importance on the online channel," ComScore Chairman Gian Fulgoni said in a statement. "Many consumers prefer to avoid the crowds and lines typically associated with Black Friday by shopping from the comfort of their own homes, and we saw a record 66 million Americans do that this year."

According to the National Retail Federation, 140 million shoppers were expected to use online means to make a purchase during the Black Friday weekend. On that day alone, the number was expected to be 97 million consumers.

A report from the International Business Times found that over the last four days online shopping revenue reached $3 billion, with nearly $2 billion happen on Friday alone. This would be an increase of 39 percent over the same time frame last year.

E-commerce changing retailers approach to Black Friday

Retailers have realized the power that comes with online shopping. A recent eHoliday survey from Prosper Insights & Analytics found that 51.1 percent of retail responders said they plan to start their online sales five days before the big weekend. On top of that, 53.3 percent said they offer deals specifically for the weekend.

While this makes it clear that merchants need to start focusing on improving their e-commerce solutions, there is another part of business that also needs to be optimized for consumers to have a good experience with online shopping - shipping. Nearly every item that is purchased online needs to be physically packaged and shipped from a warehouse or storage location.

With many of these products being purchased under a time crunch, having a successful and reliable shipping strategy is crucial for success. Any delay in shipping can ruin the holiday of an entire family or business. With the help of a third party logistics company that can handle every component—from warehousing to inventory to shipping—businesses can focus on different aspects of holiday shopping and make sure consumers are getting the best experience during this time of year.

Whether it is shipping across the country or Northeast Ohio, a proper logistics strategy is essential.