Tips to Beat Supply Chain Delays this Holiday Season

Shoppers, Brands and Retailers alike had hoped for a more relaxed holiday shopping season in 2021. By the looks of things, holiday shopping could be just as stressful this year as it was last.

Retailers are struggling to get merchandise on the shelves before the holiday rush due to delayed shipping containers. A White House official even commented to Reuters that it might be tough to get everything on your holiday shopping list this year.

To prepare for the shortages, some retailers like Target have already introduced holiday pricing. Amazon has begun its “Black Friday-worthy deals” on Oct. 4, which is earlier that they ever have.

Here’s what you should know to prepare for this year’s holiday shopping this season.

Supply Chain Problems Aren’t Slowing

Retailers are dealing with shipping backups primarily due to a limited availability of container vessels.  Warnings around the backups have been issued by retailers for months, and some are paying more to try and get goods to their customers faster.

Brands like Home Depot, Walmart and Dollar tree have chartered container ships to transport goods in an effort to avoid empty shelves. Costco, in addition to chartering ships, have also reinstated purchase limits on some of their goods.

COVID-related restrictions are also to blame for some of the product shortages.

For instance, Nike facilities in Vietnam and Indonesia are temporarily closed due to the coronavirus. Inventory shortages are expected to begin in mid-October and last well into next year.

Jill Renslow, Executive Vice President of Business Development and Marketing at Mall of America said that many retailers have planned ahead, knowing that they’ll face supply and demand hurdles this holiday season. But she also notes that even stores who have planned well will still face challenges getting product this holiday season.

Expect Shipping Delays if Shopping Online

Retailers have been reaching out to customers warning them of shipping delays they will likely experience this holiday season.  If you received such a warning from retailers you’re subscribed to, take it serious, they’re not exaggerating.

FedEx is encountering staffing shortages, causing them to divert packages to routes that will extend delivery times. UPS is warning that if you don’t start your Holiday shopping now, some packages may not arrive until the spring. The USPS has started its planned cost-cutting measures of slowing down mail service, as well as raising prices for some package delivery services.

So with all of this said: it’s highly recommended that you start your holiday shopping now for your best chance.  Here are some helpful tips to consider to avoid holiday shipping issues:

Shop Early

By starting your Holiday shopping early, you might be able to avoid inventory issues that retailers are expecting.

“You’re definitely seeing a push earlier this year…[brands] encouraging their consumers to start early, especially if there are specific things they have their eye on,” Renslow says.

There will still be great deals for Black Friday and Cyber Monday, says Matt Kramer, national sector leader for consumer and retail at KPMG, because “They don’t want to run out of inventory too early in the holiday season” by putting everything on sale right away.

If you’re worried about starting your holiday shopping too early only to miss out on future discounts, try looking for retailers that offer holiday season price matching.

Make a List of Substitutes

Just like you probably had to do in the early stages of the pandemic, having a list of backup items for products you can’t get is a good strategy to implement for your holiday shopping as well.

A YouGov survey published in early October found that 60% of Americans have found it difficult to buy preferred products in the last six months. 72% said they chose an alternative product, while only 16% said they were likely to wait for their first choice.

Along with availability being a factor, price is also going to be an issue this holiday shopping season. Popular items, when they become available, aren’t likely to be sold at a deep discount this year, according to Margaret Reid, Director and Senior Portfolio Manager at The Private Bank at Union Bank.

“Back in 2018 or 2019, you could expect to shop during the holiday season and get toys 30% to 40% off. That’s not going to happen this season,” she explains. This can be attributed to increased shipping costs.

“Families with children should absolutely be shopping early, expect to pay full price, and there’s also going to be a lot of substitution if they can’t find that product,” she continues.

If you have certain people on your list that you need to shop for, ask them to make you a list now. “Try to get two to three choices for your most important family and friends,” Kramer recommends.

Use Different Shopping Methods

Shopping both online and in-store might give you better odds to find everything you need this holiday season.

Options like curbside pickup and buy online/pickup in-store that became popular during the course of the pandemic are here to stay – and stores have improved the execution of these services as well.

One technique Renslow recommends is ordering online for in-store pickup for must-get items. Once you pick up your online order, you’ll then have the luxury of browsing in-store for items that are more flexible on your list.

Just remember, this season when physically shopping in store, prepare to be patient. Many retailers are facing a labor shortage, and with limited staffing wait times could be much longer than usual.

Story via Forbes