Ware2Go Survey: Merchants Expect Increased 2021 Holiday Sales, While Inventory Concerns Loom Large
September 29 2021 - 9:00AM
Business Wire
New Research Shows Retailers and eCommerce
Sellers Expect High Demand in 2021, While External Factors Are
Likely to Cause a Repeat of 2020’s Inventory Shortages
Ware2Go, the UPS (NYSE:UPS) founded on-demand fulfillment
network and integrated tech platform that enables merchants of any
size to offer one- to two- day shipping, today announced new
research results from its recent survey of retail and eCommerce
merchants about the upcoming 2021 holiday shopping season. In the
aggregate, nearly 60% of merchants expect higher holiday sales than
were achieved pre-pandemic, with 35.2% saying they expect 2021
sales to be higher than all previous years. In addition to
expecting that 2021’s peak season will be one of the busiest-ever
sales seasons on record, merchants are planning on a much earlier
start:
- 44% report that as of September, they are already in peak
season
- 13.8% report that their peak season started during or before
the month of August
Half of the merchants surveyed reported product shortages in
2020, and 46.4% report that running out of inventory is their top
fulfilment concern as 2021’s holiday shopping season approaches. In
anticipation of heavy demand, merchants are stocking up – 63.2%
report that they ordered their holiday inventory by August, 44.4%
ordered “more inventory than usual” and 43.3% reported ordering
inventory “earlier than usual.” However, 19% are unsure if their
inventory will arrive in time for peak season, and 46% are still
concerned that they will run out of inventory this year.
Merchants plan to use fast and free shipping guarantees as
incentives for consumers. A previous Ware2Go consumer survey found
that 80% of buyers are more likely to make a purchase online if the
brand offers free shipping, and 75% are more likely to make a
purchase if the brand offers shipping in two days or less. Previous
research shows that 69% of shoppers are more likely to click on an
advertisement that mentions free two-day shipping, and 54% of
merchants will specifically incorporate free one- and two-day
shipping details into their ads to encourage response.
“With limited inventory and capacity constraints, merchants are
starting early, as opposed to offering significant discounting, to
convert sales this year,” said Steve Denton, CEO of Ware2Go. “At
Ware2Go, our distributed warehouse network helps merchants meet
fast shipping promises, and our integrated fulfillment technology
gives sellers the ability to pivot across any sales channels on
demand and properly position their inventory. Ultimately, the
flexibility of our solution enables merchants to target their most
profitable channels and geographies to control the bottom line
profitability of their business.”
Merchants’ key concerns in the area of fulfillment and logistics
include labor shortages (45.6%) and longer than usual lead times
(36%). Retailers’ concerns around inventory and logistics are very
real, as stress on the global supply chain has impacted
manufacturing, shipping and delivery of goods worldwide. For
example, the average wait time to unload a cargo ship in Southern
California now exceeds eight days – a new record – and many
companies are struggling to hire and retain workers in the midst of
a labor shortage that is expected to last for years.
“Merchants have significant capital tied up in inventory sitting
at the ports right now,” said Denton. “Ware2Go has expanded our
services to provide new options for our merchants to help them get
that inventory stocked and ready to sell as soon as possible. We’ve
established new transportation relationships and increased the
end-to-end supply chain visibility for our merchants to further
reduce Time in Transit (TNT) into our network. That way, merchants
can start seeing returns on their inventory investments sooner
rather than later.”
More About the Survey
This data is based on a study conducted by Propeller Insights on
behalf of Ware2Go in August 2021. The survey polled over 260 U.S.
businesses about the 2021 holiday shopping season, consumer
attitudes and expected results, and key issues around shipping and
logistics.
About Ware2Go
Ware2Go, a UPS Company, is changing the traditional 3PL model to
make one- to two-day delivery easy and affordable for all merchants
by positioning products closer to end customers for a fast,
inexpensive and reliable order-to-delivery experience. Ware2Go
offers an integrated solution for warehousing, pick, pack and
shipping services to businesses of all sizes through an intuitive
cloud-based technology platform that makes it easy to extend your
distribution footprint and scale up and down as your operational
needs change. Ware2Go’s carbon offset shipping network enables
merchants to meet customer expectations sustainably, and their
technology integrates with all major sales channels to simplify
fulfillment for multichannel merchants.
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version on businesswire.com: https://www.businesswire.com/news/home/20210929005038/en/
Bospar for Ware2Go Amy Cai amy@bospar.com 803-767-9690
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