Will Santa’s presents get through this Christmas?

However, with constant reports of shipping delays and supply chain issues, global shortage of workers, many shoppers are inclined to plan ahead this holiday season, and the rest of us need all the help we can get! Both groups are likely to be receptive to marketing efforts during the early Christmas period and even the Grinches among us might be thankful for an early reminder that Christmas is coming this year.

Though late and problematic deliveries may cause consumer rights and breach of contract claims, the more acute risk to consumer businesses is a loss of consumer loyalty and sales. So what should companies do to prepare for the 2021 holidays season:

• increase the amount of stock held in the run-up to the holidays to hedge against supply chain delays causing stock shortages and lost sales;

• consider the availability of delivery options at times of concentrated consumer demand such as Black Friday (26 November 2021) and Cyber Monday (29 November 2021);

• offer incentives for consumers to shop early, including discounts on high-value baskets that can ship in one package;

• be transparent with consumers on delivery times and publicise “last days” for obtaining holiday delivery (with an extended amount of leeway to cater for the added risk of delivery problems);

• set a strategy for delivery delays and keep customers up to date with any changes in delivery times and expected setbacks;

• utilise third party “buy now, pay later” services or set up other financing options to help consumers spread the cost of purchases across the lead up to the holidays:

• consider click and collect services or manage localised delivery in-house to avoid reliance on standard haulage services; and

• ensure to build in leniency and flexibility in contracts with suppliers and delivery companies to allow for delays and problems with driver capacity.

Authored by Peter Elkin.