Why Stocking Up Early is Essential
August 21 2024 – Essential Labs
As the holiday season rapidly approaches, businesses across industries are gearing up for one of the busiest shopping periods of the year. For B2B companies, the pressure to have sufficient inventory ready for Black Friday and the subsequent holiday rush is immense. If you’re considering waiting to place your orders, you might want to think again. Here’s why stocking up early is essential to meeting your customers' demands and maximizing your sales this holiday season. And if you're looking for advice on when you should order from us, click here.
1. Ongoing Supply Chain Challenges
In the years since the COVID-19 pandemic, the global supply chain has struggled to return to its pre-pandemic efficiency. Delays in the arrival of ingredients, materials, and products have become more typical, and the skincare industry is no exception. The increased demand for raw materials, combined with labor shortages, geopolitical instability, and the impact of climate change, has led to longer lead times and uncertainty in securing necessary supplies.
These disruptions have created a new supply chain reality where longer lead times and unpredictable delays are the norm. As businesses navigate these challenges, it’s crucial to plan ahead and order your inventory well in advance, especially for the busy season. Waiting too long could mean missing out on crucial sales opportunities when demand peaks.
2. Avoiding Stockouts and Lost Sales
The holiday season is synonymous with increased consumer spending, and Black Friday serves as the unofficial kickoff. Shoppers are looking for deals, and they’re ready to buy. If your shelves are bare because of delayed shipments, supply chain hiccups, or early bird shoppers, you’ll miss out on one of the most lucrative times of the year.
Stockouts not only result in lost sales but can also harm your reputation and customer loyalty. Customers who can’t find what they’re looking for may turn to your competitors, and they might not come back. A study by McKinsey & Co. showed that if something is out of stock, 70% of shoppers will pick another store or brand.
Meet Consumer Demand: As more consumers shop early, having your products in stock ahead of time allows you to capitalize on this trend and maximize your sales potential. According to BazaarVoice, 37% of shoppers will start their holiday shopping in September or earlier), and 23% will start in August or earlier. Missing out on early sales can be detrimental.
Additionally, Tapcart found 44% of consumers plan their Black Friday or Cyber Monday purchases more than a week in advance. Foster confidence and encourage purchases before Black Friday and ensure you stay in consumers’ minds for later purchase.
3. Changing Consumer Behavior and Early Shopping Trends
Consumer behavior has shifted significantly, with more shoppers starting their holiday shopping earlier than ever. According to recent consumer trends, shoppers are increasingly looking to avoid the last-minute rush, preferring to secure their gifts and essentials well in advance. For instance, Cyber Week alone drove $38 billion in 2023 and has been trending up 7.8% year over year. This means that businesses need to be prepared for an earlier spike in demand, not just during Black Friday but also right after and the weeks leading up to it.
By stocking up early, you’ll be ready to meet this early demand and capitalize on the entire holiday season, rather than just the traditional Black Friday weekend and/or the last-minute holiday rush.
Mobile moves ahead of desktop
This past holiday season, mobile hit a new milestone with 51.1% of online sales coming through smartphones, officially surpassing desktop for the first time. As consumers spent time with friends and family, many used their smartphones to take advantage of final deals or to redeem gift cards. There’s no sign of slowing this down in 2024! Strong mobile growth in recent years has made this a key channel for retailers moving forward.
Attractive Payment Promotions
Consumers are hearing the siren song of “Buy Now, Pay Later” services. Last holiday season, delayed payment usage hit an all-time high, contributing $16.6 billion in online spend, up 14% from the previous year and representing $2.1 billion more than the last holiday season. Responding to consumer trends like BNPL sets you apart from competitors.
4. Mitigating the Risk of Rising Costs
While last year’s concerns about rising shipping costs and inflation may have lessened, the risk of price volatility and higher holiday shipping rates still exist. Geopolitical factors, fuel prices, and other economic variables can quickly lead to unexpected cost increases. By securing your inventory early, you can lock in current prices and avoid the potential impact of rising costs later in the season.
5. Strategic Planning and Diversifying Supply Chains
In today’s unpredictable environment, relying on a single supplier or waiting until the last minute is a risky strategy. Businesses that have successfully navigated recent challenges have done so by diversifying their supply chains and building in safety stock. Having a three-month safety stock might not be enough anymore, and branching out to multiple suppliers can help mitigate the risks associated with delays or shortages.
Manage Logistics More Effectively: Early stocking gives you more control over logistics, reducing the risk of shipping delays that could impact your ability to fulfill orders on time. This is especially important during the busy holiday season when carriers are stretched thin.
Stay Ahead of Competitors: By securing your inventory early, you position your business ahead of competitors who may wait until the last minute. This advantage can be the difference between a successful holiday season and a missed opportunity.
Conclusion: Take Action Now
In a landscape where supply chain challenges and shifting consumer behavior are the new normal, proactive planning is essential. Stocking up early is not just a strategy for success; it’s a necessity. Ensure your business is fully prepared to meet the demands of the upcoming holiday season by securing your inventory now. Don’t let delays and shortages stand between you and a profitable Black Friday and holiday season—act today and set yourself up for success.
Resources:
https://www.bazaarvoice.com/blog/sleigh-holiday-season-2024-consumer-trends/