The Material Handling Blog

The holiday season is in full swing and shoppers have already started browsing and buying. Despite current supply chain complexities, the National Retail Federation reports, “Consumers are spending just as much this year on gifts and other items to celebrate the spirit of the holidays.” Holiday sales are expected to reach between $843.4 billion and $859 billion in November and December, that’s an 8.5 and 10.5 percentage growth from last year. That does not include automobile, gas station or restaurant data. Consumer demand remains strong when it comes to retail ecommerce. For warehouse and distribution center operations that means putting processes to the test. No matter how much automation is currently installed, handling seasonal peaks requires a smooth process that allows for operations to thrive – accurate orders, reliable fulfillment and scalable operations – during this hectic, bustling time. As we gear up for 2022, experts at Adobe predict we will be facing the first ever trillion dollar year in ecommerce sales – it’s never too soon to prepare for an uptick in sales year-round.

Although 2020 has been an unpredictable year with unprecedented commerce demands, this year worldwide ecommerce sales have already increased by 18% more than last year. That’s $3.5 trillion USD, according to Shopify. And, it’s expected to nearly double by 2023 to more than $6.5 trillion. Chances are that planning was already underway to shift processes to accommodate for the expected growth in ecommerce before the COVID-19 pandemic hit. However, the state of the world during the pandemic greatly shortened the time frame in which updates and changes needed to be made. Companies everywhere scrambled to quickly pivot based on their unique situations.

E-commerce fulfillment is on the rise and investing in automating these facilities streamlines operational processes. Through the use of robotic ASRS, supply chain software, and conveyor sortation, fulfillment centers are beginning to look a lot like high-tech versions of Santa's workshop. Read: The Magic Behind Online Shopping

In order to be best prepared for seasonal peaks such as Black Friday and its potential 10:1 volume spike, distribution leadership must begin looking at how their warehouses are set up.

For the very first time in American consumer shopping history, Cyber Monday generated more revenue than Black Friday. In total, US e-commerce exceeded $400B in 2015, up 25% YOY (year over year). Soon the US Commerce Department will announce that fourth quarter sales accounted for nearly 40% of online sales for the year. Read: The Impact of Cyber Monday Beating Black Friday