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How to wrap up a successful peak season at the Canada Post E-commerce Operations Workshop

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Topic: Are You Ready For The Holidays? How To Wrap Up A Successful Peak Season
Speaker: Valérie Normand, Director - Parcels & eCommerce Solutions Integration, Canada Post

Published in: Business
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How to wrap up a successful peak season at the Canada Post E-commerce Operations Workshop

  1. 1. Preparing For Peak: 2016 Holiday Considerations
  2. 2. Page 2 | 2016 | Preparing for Peak: 2016 Holiday Considerations | Confidential 2 Are You Ready? For e-commerce businesses there is even more pressure to make the most of this short yet lucrative selling window. November & December is make-or-break time for retailers
  3. 3. Page 3 | 2016 | Preparing for Peak: 2016 Holiday Considerations | Confidential 3 Canada Post’s 2015 Holiday Recap 16 “Million Parcel Days”. 40% YOY growth in holiday e-commerce volumes. Period based data Canada Post Parcel Data Insights – E-commerce Source: Canada Post Holiday Monitoring Research 2015 2.2 M Deliveries over 8 Weekends.
  4. 4. Page 4 | 2016 | Preparing for Peak: 2016 Holiday Considerations | Confidential 4 Each year we monitor our e-commerce customers closely to evaluate how their changes to sales and shipping promotions, deadlines and return policies affect their shipping volumes during the holidays. 2. Free is king 3. Merchants are pushing shipping deadlines later 1. It’s all about Cyber Week 4. The holiday season doesn’t end on Dec 26th
  5. 5. Page 5 | 2016 | Preparing for Peak: 2016 Holiday Considerations | Confidential 5 It’s All About Cyber Week 44% YOY growth in Cyber Week volumes. Source: Canada Post Holiday Monitoring Research 2015
  6. 6. Page 6 | 2016 | Preparing for Peak: 2016 Holiday Considerations | Confidential 6 An Entry Point To Online Shopping of households that shopped during Cyber Week in 2014 received their very first e-commerce parcel delivery. of these households continued to spend online by making at least one purchase into 2015. 15% 50% Canada Post Parcel Data Insights – E-commerce parcel volume data compiled during Holiday 2014 & Full year 2015.
  7. 7. Page 7 | 2016 | Preparing for Peak: 2016 Holiday Considerations | Confidential 7 Merchants Are Offering A Variety Of Promotions… offered free shipping with no restrictions on Black Friday.18% 32% offered free shipping with no restrictions on Cyber Monday. of merchants offered Black Friday promotions.90% 86% of merchants offered Cyber Monday promotions. Merchants offering sales promotions Merchants offering free shipping (no restrictions) promotions Source: Canada Post Holiday Monitoring Research 2015;
  8. 8. Page 8 | 2016 | Preparing for Peak: 2016 Holiday Considerations | Confidential 8 61% 135% Volume increase (%) during Cyber Week compared to the week prior Sales promotion + free shipping with minimum purchase Sales promotion + free shipping with no restictions 135% …And Consumers Are Responding Lift in Cyber Week volumes for merchants offering free shipping with no restrictions. 74% Source: Canada Post Holiday Monitoring Research 2015; Average lift based on the change in total shipping volume from Nov 20-26 and Nov 27-Dec 3
  9. 9. Page 9 | 2016 | Preparing for Peak: 2016 Holiday Considerations | Confidential 9 Are you maximizing your the Cyber Week opportunity? Cyber Week has solidified its position as the main event of the season and the official start to the holiday shopping period.
  10. 10. Page 10 | 2016 | Preparing for Peak: 2016 Holiday Considerations | Confidential 10 Free Is King: Offer A Variety Of Free Options
  11. 11. Page 11 | 2016 | Preparing for Peak: 2016 Holiday Considerations | Confidential 11 2014 Merchants Are Making Online Shopping Easier Than Ever 2015 56% of merchants offered free shipping. 50% of merchants* offered the option to buy online & pickup in-store. 64% of merchants* offered free returns to store. 42% of merchants offered free shipping. 42% of merchants* offered the option to buy online & pickup in-store. 51% of merchants* offered free returns to store. *Merchants operating both online and bricks & mortar store. Source: Canada Post Holiday Monitoring Research 2015
  12. 12. Page 12 | 2016 | Preparing for Peak: 2016 Holiday Considerations | Confidential 12 63% of shoppers will complete their online purchase when offered free shipping at checkout. Fresh Opportunities And First Impressions Source: RJ Metrics 2016 benchmark report series-The Ecommerce Holiday Benchmark report Retailers acquire between 29% and 59% more customers during the holiday months.
  13. 13. Page 13 | 2016 | Preparing for Peak: 2016 Holiday Considerations | Confidential 13 21% of shoppers complete their online purchase when presented with a free in- store pickup option at checkout. 26% of shoppers complete the purchase when presented with a free return to store option at checkout. Round Out Your “Free” Offerings Source: 2016 Canadian Online Shopper Study, CPC 16-202, April 2016 Leverage available brick and mortar networks to incorporate “free” options across various touch points- enhancing the experience and aiding in conversion.
  14. 14. Page 14 | 2016 | Preparing for Peak: 2016 Holiday Considerations | Confidential 14 Have you incorporated free options across multiple touch points? Offering free options throughout the online shopping journey will support shopper acquisition, conversion and retention.
  15. 15. Page 15 | 2016 | Preparing for Peak: 2016 Holiday Considerations | Confidential 15 Merchants Are Pushing Deadlines Later Average standard shipping deadline for both 2014 and 2015 Dec 18
  16. 16. Page 16 | 2016 | Preparing for Peak: 2016 Holiday Considerations | Confidential 16 More and more merchants are pushing their deadlines past Dec 18th to increase the number of selling days Extended Deadlines = More Selling Days 24% Source: Canada Post Holiday Monitoring Research 2015 of merchants had deadlines past Dec 18. 2014 67% of merchants had deadlines past Dec 18. 2015
  17. 17. Page 17 | 2016 | Preparing for Peak: 2016 Holiday Considerations | Confidential 17 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% % of total holiday volume < Dec 18 Dec 18+ It’s Paying Off… Merchants with later shipping deadlines benefited from increased volume in the days leading up to Christmas. Source: Canada Post Holiday Monitoring Research 2015 of merchants operating a DC in eastern Canada (Ontario/Quebec) offered a deadline on Dec 18th or later. 20% YOY increase in volumes. This resulted in a: 56% The location of your inventory plays an important role in your ability to offer later deadlines. Average deadline
  18. 18. Page 18 | 2016 | Preparing for Peak: 2016 Holiday Considerations | Confidential 18 Are you pushing your deadlines as late as possible? Offer greater flexibility to your shopper base by extending sales windows and offering faster delivery options.
  19. 19. Page 19 | 2016 | Preparing for Peak: 2016 Holiday Considerations | Confidential 19 It’s Not Over On Dec 26th of online shoppers returned or wanted to return an item they had bought online. 30% Source: 2016 Canadian Online Shopper Study, CPC 16-202, April 2016
  20. 20. Page 20 | 2016 | Preparing for Peak: 2016 Holiday Considerations | Confidential 20 Returns Are A Reality 46% of merchants offer at least one free returns option. 48% 75% Offer free returns by mail. Offer free returns to store.* Source: State of Canadian E-commerce Returns, CPC Top 200 Aug 2016 *Among businesses with a bricks & mortar network 20% Offer free returns to store* and by mail.
  21. 21. Page 21 | 2016 | Preparing for Peak: 2016 Holiday Considerations | Confidential 21 Driving The Perfect Returns Experience  Include the return label in the original shipment  Offer easy options for getting the item to the delivery carrier Offer free returns by mail  Train staff on the process for receiving an online order return  Have a separate customer service counter to reduce wait times Offer free returns to store 52% of shoppers said a label in the original shipment was a critical element to a perfect returns experience. 44% of shoppers said the ability to return to store was a critical element to a perfect returns experience. Source: 2016 Canadian Online Shopper Study, CPC 16-202, April 2016
  22. 22. Page 22 | 2016 | Preparing for Peak: 2016 Holiday Considerations | Confidential 22 Are you offering the best possible returns experience to your shoppers? Consider ways to enhance your returns experience during the holidays- leaving a lasting impression that will increase loyal customers year round.
  23. 23. Page 23 | 2016 | Preparing for Peak: 2016 Holiday Considerations | Confidential 23 Wrap-Up A Successful Holiday Season Cyber Week Free Is King Extending Deadlines Returns
  24. 24. Page 24 | 2016 | Preparing for Peak: 2016 Holiday Considerations | Confidential 24  Weekend Deliveries- Starting November and through to December, Canada Post delivers on weekends.  Seasonal Workers- are hired to manage the increase in holiday parcel volumes.  Extended Customer Service- support with extended hours of operation starting early November.  Increasing Retail Capacity- Advancements to technology and additional resources are hired in high volume retail outlets across the country to free up capacity. Canada Post’s Holiday To Do List Canada Post invests significantly in strategies to increase operational capacity and ensure we deliver the holidays for our customers.
  25. 25. Page 25 | 2016 | Preparing for Peak: 2016 Holiday Considerations | Confidential 25 2016 Shipping Deadlines

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