KING OF PRUSSIA, Pa., June 28, 2017 /PRNewswire/ -- It's never "too early" for retailers to prepare for the holidays, according to Radial, the leader in omnichannel commerce technology and operations, who fulfilled over 65 million orders last holiday season on behalf of the world's most beloved brands. Radial advises retailers to be prepared to kick off the 2017 peak season on Amazon Prime Day, when consumers will begin flocking to eCommerce sites to scoop up deals and get a head start on the season. For many retailers, peak season accounts for more than 30 percent of total yearly sales, which means one small slip-up during this period can drastically impact annual revenues.
"According to F&D Reports, more than 3,600 retail stores have closed since January, with thousands more hanging in the balance," said Stefan Weitz EVP, Technology Services at Radial. "This peak season will make or break retailers, who are depending on eCommerce success to drive profits and set them up for success in the New Year."
Radial explored the top threats to peak success that retailers should be prepared for.
The Ghost Economy
Too many retailers throw away money in the form of overstock, out-of-stock, and return costs during peak season. Referred to as the ghost economy, these costs consumed over four percent of the average U.S. retailer's revenue in 2014, totaling $1.75 trillion dollars. The perception that these are unavoidable costs of doing business is where retailers are wrong. Retailers with omnichannel solutions such as order management systems can recapture 50 to 75 percent of these losses with intelligent inventory allocation, demand forecasting, and fulfillment planning, while sidestepping retail's biggest threat: lost customers. More than half of consumers (59 percent) will not return to a retailer after a bad experience, such as an out-of-stock item or declined transaction.
Fraudsters are better at their game than ever before and have their target firmly placed on eCommerce this holiday season. With more consumers shopping online, there is more opportunity for fraudulent transactions. According to Experian, eCommerce fraud increased 33 percent in 2016 from 2015. That growth rate is expected to continue in 2017, as the total number of breaches has increased 56 percent compared to the same time in 2016. During the 2016 peak season, November 20 – January 2, Radial's fraud lab protected its clients from a record number of attacks worth $13.9M. With fraudsters implementing new tactics every day, retailers can't afford to assume fraud attacks as the status quo any longer, especially during peak.
Securing a Strong Seasonal Workforce
As the number of online shoppers continues to grow, retailers must adapt to a shift in hiring demands from in-store sales roles toward fulfillment and customer care positions. In 2017, Radial will hire more than 23,000 seasonal employees worldwide to support its brands' anticipated eCommerce demand – a 15 percent increase from 2016. For many retailers, outsourcing offers the key to providing the flexibility, scale and depth needed to deliver an Amazon-like customer experience affordably. Working with a partner who can scale your operations quickly and cost-effectively can mean the difference between meeting demand or playing a losing game of catch-up.
To learn more, read Radial's whitepaper: Peak Distress: How One Simple Failure in November Can Spell Doom for Your Entire Year.
For more information on Radial's seasonal hiring opportunities, please visit: https://www.radial.com/jobs/seasonal-workforce.
Radial is the leader in omnichannel commerce technology and operations, enabling brands and retailers to profitably exceed retail customer expectations. Radial's technical, powerful omnichannel solutions connect supply and demand through efficient fulfillment and transportation options, intelligent fraud detection, payments, and tax systems, and personalized customer care services. Hundreds of retailers and brands confidently partner with Radial to simplify their post-click commerce and improve their customer experiences. Radial brings flexibility and scalability to their supply chains and optimizes how, when and where orders go from desire to delivery. Learn how we work with you at www.radial.com.
PAN Communications for Radial