5 most common holiday challenges for businesses and how to tackle them
Challenge #1: Shipping and delivery
Late deliveries are a nightmare for both businesses and clients, especially when holiday gifts arrive after the festivities. As a business, you can only do so much when it comes to shipping and delivery if a client places the order last minute, but there are steps you can take to minimise delays and ensure timely delivery.
Solutions
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Partner with multiple shipping companies and reduce risk.
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Offer different shipping options: expedited, standard, and local pick-up options to suit different needs.
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Integrate real-time tracking systems and automated shipping notifications to keep clients informed.
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Clearly communicate "order by" dates to clients and emphasise these dates at checkout.
Challenge #2: Customer service overload
The holidays bring a surge in customer inquiries, from product questions to shipping updates. While more sales are a positive sign, overwhelmed customer service teams can lead to dissatisfied customers and overworked employees. We’ve adapted a few methods to create more efficiency, and we’re happy to share our advice with you.
Solutions
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Automate as many processes as possible. Try implementing chatbots and AI-driven tools to handle FAQs, track orders, and process simple requests.
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Create a detailed FAQ section, provide step-by-step guides and video tutorials.
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Prioritise issues and address high-priority issues first.
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Make sure your payment processing works perfectly and offer the most popular payment methods to avoid additional inquiries. Paysera Checkout offers both and more!
Challenge #3: Managing returns and refunds
When there’s holiday hype to buy lots of different presents and buy them fast, people can make rushed decisions. Or the recipient didn’t like the present and would rather return it. This happens to every business, but what matters the most is that you manage these situations as well as you would manage sales. An efficient and helpful procedure will leave a lasting positive impression, and who knows – clients might return to you for a different occasion.
Solutions
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Offer pre-paid return labels and a dedicated portal for clients to initiate returns easily.
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Clearly outline return policies, including deadlines and exceptions, before purchase.
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Provide incentives, such as free shipping, for clients to exchange rather than return items.
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Use holiday return data to identify common issues and improve product descriptions, sizing guides, or quality.
Challenge #4: Fraud and cybersecurity threats
The holiday season attracts not just shoppers but also cybercriminals looking to exploit busy businesses and unsuspecting clients. Staying vigilant and proactive can protect your business and your clients from unfortunate situations.
Solutions
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Strengthen payment security by implementing robust fraud detection tools, such as address verification services (AVS) and card verification value (CVV) checks.
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Train employees to recognise phishing attempts and implement strong access controls.
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Protect your online shop by using SSL encryption, regularly updating software, and conducting vulnerability assessments.
Challenge #5: Managing increased demand
Every business wants to sell, but not every business is prepared to manage increased demand. This can lead to stockouts, delayed shipments, and frustrated clients.
Solutions
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Use historical sales data, market trends, and pre-order information to anticipate inventory needs to predict potential demand during the holiday season.
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Adopt inventory management software to track stock levels in real-time and automate reordering.
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Hire temporary warehouse staff, extend operational hours, and optimise picking and packing workflows.
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Display real-time inventory availability to prevent overselling and manage client expectations.
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Allow clients to reserve popular items before they sell out, helping you better plan inventory.
Preparation is key
All holiday challenges for businesses are manageable with a bit of preparation. As a rule of thumb, expect the unexpected and prepare for what you can. You’ll figure out the rest as you go. Good luck with the holiday sales!
