Handling Returns, Shipping, and Inventory for Black Friday, Cyber Monday

Managing your returns, exchanges, and inventory is just as crucial for an eCommerce store as it is for a physical store.

You don’t want to be selling and doing well during Black Friday and Cyber Monday only to realize that you oversold, that the product you promised isn’t actually in stock!

To be on top of your returns, exchanges, and inventory, not just for BFCM but the rest of the holiday buying season, you’ll need to have your returns and exchanges, shipping, and inventory down pat!

We’ll be going through what you can do to ensure that your eCommerce business thrives! These tips are great not only for BFCM but for Christmas and Boxing Day/Week too!

Shipping

When it comes to shipping, customers have high expectations, and during the holiday season, these expectations are heightened even more! Due to this, you want to ensure that you have your shipping ducks in a row.

Here are three things you can do to get your little ducks in a row!

Give Customers Shipping Options

The more shipping options you have, the better. The types of customer and their expectations for shipping vary, and while one customer may want their item right away, another may not care when it gets to them.

Make sure that you have shipping options to satisfy each of these customers, as well as those in between. This could look like offering:

• Free Shipping

• Expedited Shipping

• Express Shipping

Communicate Clear Shipping Times

There is nothing worse than an angry customer. Especially when it comes to shipping times, it is best to be clear and upfront when it comes to shipping times. Give customers all the information they need to make an informed decision.

Some may not want to wait a week for shipping, but another will, and when you let them know how much time it will take to process, package, and ship their orders, customers appreciate it.

This also goes for individual products! If you have dropship items, there are tools you can use (such as Tabs by Station) to let customers see delivery times, where products ship from, keep them up to date on delays by COVID. All of which is essential information.

Keep this information on your product page. This will keep customers from clicking away and will improve your conversion rate!

Ship Quickly (If Possible)

Big Corporate businesses like Amazon (and subsequently, Walmart, Sephora, etc.) have set a standard of quick or two-day shipping, and some customers have come to expect this. If you cannot compete with this, which many small eCommerce and non-eCommerce businesses are, let your customers know. If shipping can take between 10 to 15 business days, let that be known.

You want to set expectations with your customers first, so there are no surprises.

Returns versus Exchanges

During a time like BFCM, where many customers are buying, some returning as well, it is best to have a returns and/or exchanges plan. This is especially important when we want to stay cash-flow positive!

Similarly, as with shipping times, it is important to layout your returns and/or exchange policy. Make sure it is in an easy-to-find spot or that it is located in the FAQ section of your website.

As a Canadian business, you are not required to offer returns; if you are a smaller business, take advantage of this fact! The cost to return an item (the postage, time, etc.) can become a strain on your business and your cash flow, but we recommend offering exchanges. If you choose not to offer returns and only offer exchanges, make that know to your customer!

Here are a few things you can consider when it comes to returns versus exchanges game plan:

Make Your Return/Exchange Policy Clear

• Use Clear, Simple Language

• Make it Easy to Find

  • i.e., FAQ, the bottom of the webpage

  • Cover Any and All Questions Customers May Have

Offer an Incentive to Exchange Rather than Return

• Give People a Bonus Credit for Accepting a Store Credit Instead of a Refund.

• Offer a Percentage Off for Exchanging an Item Instead of Returning

Inventory

You can’t make money if you don’t have anything to sell! Ensuring that your inventory is correct is the best way to get that money rolling in.

Before we give helpful tips, tips that rely on one thing, mainly, ensure you have your best-selling products available and ready to ship!

Here are two more things that can do to make sure you are always stocked:

Consider the Holiday Shipping Times

This is especially important for this year. As we have mentioned and talked about before, more people have moved to shopping online this year. For much of the year (especially the first half), it was the only way to get certain goods. While it has helped many eCommerce businesses, we all saw and experienced the delay in shipping due to the sudden influx of orders that needed to go out and the delay due to COVID19.

Experts have said that they don’t foresee these shipping delays getting any better come the start of BFCM and could potentially get slower. If you are a business that sells to the U.S., this is especially important to remember and consider. Many are still seeing delays in shipping times to the U.S., even as shipping has returned to almost normal within Canada.

As you consider this, also consider:

• Using Order Cut-Off Times

  • This will help communicate to customers when they will get their product

  • The volume of packages globally or nationally — more packages shipping means longer shipping time

  • Follow Up with Customers Ordering During Key Dates

    • Do this to ensure the shipping option is something they’re comfortable with

Know Your Reorder Point

A reorder point is the inventory level that signals when you need to purchase/restock your product. This is essentially the point at which your stock shouldn’t fall below if you don’t want to run out of products before your next shipment arrives.

There’s even a formula to go with it:

(Average Daily Sales x Days Needed to Get Your Product)

+

Safety Stock

=

Your Reorder Point

The outcome will be different for each product. We suggest starting with your most popular items and working your way down from there! This will work for products that your curate, as well as the product that you handmake.

When doing this formula with your product, remember to consider supplier lead time and determine if it will vary during the holiday season.

Black Friday is only 39 days away! These tips can make or break what is the start of the holiday buying season. Don’t get left behind the 8-ball this year.

To learn how we can help you this BFCM and in the future book a consultation today!