How to Start Prepping Inventory for the Holiday Frenzy

Emery Johnson

August 30, 2021

For shoppers, “the most wonderful time of the year” lasts from late November to December. But for ecommerce brands, the preparation for the holiday shopping season starts long before that.

To make the most of holiday promotions—and to ensure sufficient stock to keep retailers and customers happy—brands should be preparing now for Black Friday, Cyber Monday, and the entire holiday shopping season. Here’s how:

Identify and implement your promotional strategy

When preparing for the holiday shopping season, your first step should be identifying your promotional strategy. This strategy should include detailed plans on which products you want to promote from your catalog, how you plan to price these products, and when you want to begin the promotion. This information should then be clearly communicated to retailers as soon as possible.

Only after making these decisions can you accurately predict the lift you should expect to see during holiday promotions. Looking at historical data is the best way to predict what your sales will be like. Focus on analyzing data of like products with like price points and like discounts. Brands should then plan on having enough stock to cover the anticipated lift in sales plus or minus 10%.

When crafting your holiday promotional strategy, flexibility is key. You may initially plan on offering 25% off a product but then see that your competitors are offering 30% off when Thanksgiving rolls around. To avoid losing sales to competitors, prepare a game plan to move to a more competitive price if necessary. Communicate this plan to retailers so all sellers are on the same page and you’re not damaging retailer relationships by selling below your established price.

It’s also important to keep in mind that November and December see a natural uptick in ecommerce traffic and sales even without deep discounts or holiday promotions. In addition to the lift from Black Friday and Cyber Monday promotions, brands should also prepare for increased incremental sales of full-price products because of increased ecommerce traffic during the holiday shopping season.

Prepare for seasonal promotions with plenty of time to spare

Seasonal brands should begin planning their holiday shopping promotions with about a 12 month lead time. Brands that replenish inventory more often should begin communicating their holiday shopping promotions to retailers between 6-8 months before the shopping season starts. At the 6-month mark, it’s a good idea to hone in on your shipping times so your retailers’ supply chains are prepared. If you feel like you’re already behind, see what steps you can take today to get back on track.

Try to plan to have your shipment receipts to your retailers by the first week of November, making sure you have enough product to cover your holiday timeframe with a month’s worth of lead time to get ahead of any possible delays. Aligning your receipt flow to arrive well before you expect it to sell improves your cash flow and allows for supply chains to be more nimble. That’s why it’s so important to have a correct demand sales forecast—without it, you can’t have a correct receipt flow. These principles apply year-round but are especially important as sales increase during the holidays.

Prepare your own supply chains to both account for ongoing import delays and to ensure there’s enough buffer time for your retailers. Have safety stock on hand so you can replenish for December as needed if Black Friday goes well.

Coordinate marketing efforts to maximize promotions

Preparing and planning marketing assets are another important factor in preparing for the holiday shopping season. Make sure you have your best products featured in your marketing, and coordinate with your vendors to see if you’re going to be featured in any of their marketing efforts.

For brands that sell exclusively on Amazon, it’s worth syncing with Amazon to see if your product can be featured as a Deal of the Day or through other marketing opportunities or advertising spending. Plan this marketing well in advance so you know when the promotions will release and what kind of impact they’ll make on your sales and inventory.

Special considerations for 2021

Brands shouldn’t expect this holiday shopping season to mirror 2020, even if the world still hasn’t quite returned to a pre-pandemic normal.

The 2020 season was an anomaly not only because of increased ecommerce traffic, but also because of a later-than-usual Prime Day. While Prime Day normally occurs in the summer, supply chain issues postponed it until October last year, which triggered the holiday shopping season early and forced brands to be aggressive with pricing from October until the end of the year.

Since Prime Day 2021 happened in the summer, brands should expect a smaller cyber timeframe this year. Still, it’s a good idea to prepare for higher ecommerce demand than was typical pre-COVID, since many shoppers have grown accustomed to the convenience of ecommerce.

Need help preparing for holiday shopping logistics?

When you’re working hard to stay above water with your day-to-day ecommerce operations, it can be overwhelming to plan far enough in advance to take full advantage of holiday shopping promotions. It can also be challenging to access the data you need to accurately predict the kind of lift you’ll see during the holidays and prepare your stock and supply chains accordingly.

Pattern simplifies these processes for brands. Our world-class ecommerce teams and state-of-the-art software help brands make data-backed decisions to accelerate their growth on ecommerce year-round, and these services are available at no additional cost to you. Interested in learning more? Request a demo to see how our experts can guide you through the holiday ecommerce frenzy.

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Sept 6, 2022

Global Ecommerce Weekly News: 6th September 2022

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Aug 30, 2022

Global Ecommerce Weekly News: 30th August 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon set to shut down Amazon Care Amazon is closing its telehealth service, Amazon Care, which launched in 2019 as a trial program for its headquartered employees. Later the service was rolled out nationwide for employees and other companies. The ecommerce giant has now made the decision to move away from the healthcare space, believing it was not the right long-term solution for its enterprise customers. [Read more on CNBC](https://www.cnbc.com/2022/08/24/amazon-is-shutting-down-amazon-care-telehealth-service.html) Peloton closes new deal to sell on Amazon Following a recent deal, Amazon customers will soon be able to buy Peloton fitness equipment on the marketplace, marking Peleton’s first move outside a direct-to-consumer model. According to Peloton’s CCO, there are already around half a million searches on Amazon for Peloton products every month, despite having no presence on the marketplace. Some key products include the original Peloton Bike, retailing for $1,445 and Peloton Guide for $295. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/24/peloton-strikes-deal-to-sell-fitness-equipment-on-amazon/) --- Other Marketplace News --- 60% of Malaysians are buying from local sellers on Shopee A recent survey of nearly 3,500 respondents found that nearly half of the shoppers prefer to purchase from local sellers due to shorter delivery times. Other shoppers decide to shop locally due to the quality of the products made in Malaysia and an interest in keeping the economy running. As a result, smaller local merchants have been able to grow their businesses, and shoppers benefit from shorter delivery times, products of high quality and supporting local businesses. [Read more on The Malaysian Reserve](https://themalaysianreserve.com/2022/08/25/around-60-malaysians-are-buying-from-local-sellers-on-shopee/) Flipkart’s social commerce platform Shopsy crosses 100 million users Flipkart launched a social commerce arm, Shopsy, in July of last year, which has now surpassed 100 million users, ahead of its target timeline being the end of 2022. This acquisition of new users has made Shopsy one of the largest platforms of its kind in the country, and is expected to onboard a further 100 million by the end of 2023. The platform is centred around boosting local entrepreneurship and powering ecommerce for consumers across tier 2+ regions where users face challenges around trust and navigation when shopping online. [Read more on Business Standard](https://www.business-standard.com/article/companies/flipkart-s-social-commerce-platform-shopsy-hits-100-million-users-1220828006851.html) Meta joins Amazon and Walmart in bid for Indian ecommerce market Amazon mentioned earlier in the year that it would be building a logistics division in-house through its purchase of a 51% stake in Ecom Express, an end-to-end logistics firm, to make ecommerce deliveries more efficient in the country. Walmart operates Flipkart in India and is set to continue its investment in the marketplace. In an effort to compete in the Indian ecommerce market, Meta has partnered with Indian ecommerce company, JioMart, to offer customers a grocery shopping platform within its WhatsApp chat feature. [Read more on Pymnts](https://www.pymnts.com/news/retail/2022/meta-joins-amazon-walmart-indian-ecommerce-market/) --- Other Ecommerce News --- Ecommerce in Spain worth €57.7 billion in 2021 Spanish ecommerce saw 11.7% growth compared to last year, largely attributed to cross-border sales. In the final quarter of 2021, ecommerce sales in Spain were at €16.9 billion euros, at least 60% of which came from cross-border sales. Transactions from foreign locations to Spain generated a turnover of €1.56 billion in Q4, a growth of 27.7% compared to Q4 a year before. [Read more on Ecommerce News](https://ecommercenews.eu/ecommerce-in-spain-was-worth-e57-7-billion-in-2021/)
Aug 23, 2022

Global Ecommerce Weekly News: 23rd August 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon to add mental health support to primary-care service Amazon is set to move into mental health therapy with its primary-care division, following its recent acquisition deal of One Medical. The plan is to partner with virtual behavioural therapy service, Ginger, to offer its Amazon Care users with on-demand access to mental health services, licensed therapists and psychiatrists. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/11/amazon-plans-to-add-mental-health-support-to-primary-care-service/) GMB union calls for £15 an hour minimum pay at UK Amazon warehouses Amazon recently offered its warehouse workers a 3% pay rise, which in comparison to the June inflation rate of 9.4% left employees disappointed. Following this, hundreds of Amazon warehouse workers stopped work last week, protesting against the minimal pay increase, seeking a minimum of £15 an hour. Recent protests consisting of employee walkouts and sit-ins aim to get a better offer out of Amazon. [Read more on The Guardian](https://www.theguardian.com/technology/2022/aug/09/gmb-calls-for-15-an-hour-minimum-pay-at-amazon-warehouses-in-uk) Amazon third-party sellers have received their first-ever holiday fee hike Amazon’s third-party marketplaces account for close to half of the company’s online sales. The company introduced a 5% fuel and inflation charge to its third-party sellers earlier this year, and has now implemented another inflation increase charge. Commencing 14 October, any seller who uses Amazon’s fulfilment service is subject to the price hike, which is set to be an additional 35 cents per item for products sold in the US and Canada. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/17/amazon-third-party-sellers-have-received-their-first-ever-holiday-fee-hike/) Amazon puts a pause on UK grocery shop roll-out as the cost of living increases Amazon has slowed down on its UK roll-out of till-free Amazon Fresh grocery stores following disappointing sales and the rise in cost of living. Allegedly, the company is no longer looking for potential sites to expand and if more stores are opened, they will likely no longer use a till-free system, as consumers become more cautious about spending. [Read more on The Telegraph](https://www.telegraph.co.uk/business/2022/08/21/amazon-pauses-uk-grocery-shop-roll-out-following-disappointing/) --- Other Marketplace News --- Shopee overtakes Alibaba across international markets Shopee has surpassed Alibaba and taken the top spot for sales outside of China. Singapore-based marketplace saw a year-on-year increase of 51.4% at the end of Q2 of this year, while Alibaba saw a 3% drop during the same time period. This can be seen as a promising development for start-ups and their ability to compete with some of the largest ecommerce giants in the market. [Read more on Exchange Wire](https://www.exchangewire.com/blog/2022/08/18/shopee-surpasses-alibaba-in-international-sales-amazon-searches-for-entertainment-exec/) H&M reopens its official store to Alibaba’s Tmall ecommerce platform It has been nearly 18 months since Alibaba removed H&M from its Tmall platform, following H&M’s criticism of human rights abuses in Xinjiang. It is estimated that over a million people, predominantly minorities in the area, have been unlawfully detained in camps across the city. Brands including Nike, Adidas, Burberry and Converse were swept up in the controversy, however H&M was one of the first to be targeted for speaking out about the issue. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/16/hm-returns-to-alibabas-tmall-platform-16-months-after-xinjiang-controversy/) Klarna launches new feature allowing UK consumers to view full online order history Buy-now-pay-later company, Klarna, has launched a new feature on its shopping app, which allows UK consumers to view their full online order history, regardless of whether they purchased the product using Klarna. The feature also shows delivery tracking and aids consumers in managing their online purchases more conveniently. [Read more on The Industry](https://www.theindustry.fashion/klarna-launches-new-feature-allowing-uk-consumers-to-view-full-online-order-history/) --- Other Ecommerce News --- Online marketplaces responsible for £280 billion business turnover in the UK Nearly 900,000 UK businesses are currently selling on online marketplaces, generating an estimated £282 billion worth of sales each year. This figure represents 6% of the UK’s annual business turnover, highlighting the notable contribution that marketplaces make to the UK economy, along with the potential for further growth in this area. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/09/online-marketplaces-responsible-for-280-billion-business-turnover-in-uk/)