2024 Peak Season Prep: Considerations for Your Global Business

They say first impressions are everything, and that’s absolutely the case in ecommerce. As we approach peak season, you’re going to be making a lot of first impressions.  

52% of consumers who shop online worldwide order from both international and local retailers.  

In North America alone, according to the latest report from the Bureau of Transportation Statistics, total transborder freight was up 7.5% in February over the same month a year ago. This was driven by a 4.4% increase in freight between U.S. and Canada, and a 10.6% increase in U.S.-Mexico freight.  

You’re probably noticing a theme here… These remaining shopping months are the most important time for most ecommerce retailers, so customer experience (CX) is paramount.  

And what’s one of the biggest factors of CX? Shipping and delivery.  

Yet, according to Nosto’s cross-border shipping report, 41.25% of shoppers hesitate from making an international purchase because it’s not clear if they’re going to get hit with surprise shipping costs and duties. 

Whether you’ve historically shipped cross-border or are expanding into new markets to drive growth in Q4, you can make an incredible first impression on new customers around the globe. To do this, you must ensure you’re delivering a seamless CX from purchase through delivery.  

But when shipping internationally, the “through delivery” part of the equation becomes a little more complex.  

So, with Q4 being the most important time of the year to ensure your cross-border/international shipping experience is best-in-class, let’s explore some key considerations for how to best set yourself and your brand up for success this peak season, and how FlavorCloud can help. 

Boost Conversions with Localized Pricing Strategies 

Yes, international ecommerce sales is on the rise, but customers still want a smooth, localized experience. Using localized pricing strategies will let you stay competitive and relevant in whatever market you’re targeting.  

Essentially, this means optimizing checkout based on your consumer’s country. 

Determining the best localized price points for your product catalog isn’t always easy. Whether you’re our Shopify app or hooked up to FlavorCloud through our APIs, our team is here to help you. 

By reviewing historical data and trends in a given market across FlavorCloud customers, our CSMs can help you make data-driven decisions about how to meet pricing expectations for consumers across the globe. 

Also, if you want to do some research yourself first, we recommend reviewing Shopify’s Help Center (or a similar resource for non Shopify-customers) for more information on local currencies. 

Use Conversion Optimization Rules to Drive Sales 

Using FlavorCloud’s conversion optimization rules for localized pricing strategies will help you stand out from the sea of competition during peak season, without adding more complexity to your cross-border shipping strategy. You can easily adjust shipping and landed cost rates with customizable markups and discounts that align with your promotional strategy.  

So why is this tip super important during peak season? By using conversion optimization rules, you can offer free or discounted shipping promotions to sweeten the deal for your customers during Black Friday, Cyber Monday, and through the holiday season. 

We recommend testing these rules ahead of peak season, especially if you’re using them with Shopify discounts. You don’t want an unexpected overlap between shipping conversion rules and discounts as this could potentially hurt your margins when shipping cross-border.  

The FlavorCloud team will happily support you with your conversion optimization strategy, so you can offer enticing deals while still meeting your revenue goals. 

Offer DDP Shipping for Faster Customs Clearance 

Let’s do some math:  

Lowest shipping costs + fast delivery times + automated customs clearance + no surprise fees at delivery = a better customer experience. A better customer experience = more repeat customers and a stronger brand reputation.  

It’s simple, even if you hate math! 

The truth is, cross-border commerce has expanded over the last five years to all consumer goods verticals. Fashion and consumer electronics are still the largest sectors, with pharmaceuticals falling under the fastest-growing category.  

With the above changes in purchase behavior, for direct-to-consumer brands, offering their product to an international audience has become the most important strategy for expanding sales, while optimizing supply chain has become an important one for cost reduction and better unit economics. 

The problem with the above? Ever-increasing complexities related to international shipping and trade compliance, and supply chain disruptions alongside consumer behavior shifting B2B ecommerce trends.  

We know it’s not easy. Thankfully, one way to expedite (no pun intended) this is to offer DDP shipping. DDP leads to streamlined customs clearance, resulting in a much faster cross-border and international shipping experience. Added speed and eliminating surprise costs? It’s a holiday miracle! 

If you want quicker arrivals, we strongly recommend using DDP over DDU. DDU shipments often face longer customs clearance times and require consumers to bear the burden of dealing with customs directly for any clearance, compliance, or bills.  

With FlavorCloud, guaranteed DDP and compliance handling ensure there are no surprise costs or delays during a time of year when time and cost are of the utmost importance. 

Prepare for New Product Launches with Accurate HS Codes and Compliance 

You can’t run a marathon without proper preparation. If we consider product launches to be the marathons of the ecommerce world, product launches during peak season are the triathlons. Make sure you’re fully prepared! 

If you plan to release new products this peak season, remember to have your HS codes, product weight, and country of origin configured for all products. Not doing this can lead to pesky shipping disruptions.  

Accurate HS codes are essential for determining landed costs, ensuring compliance, generating precise commercial invoices, and expediting customs clearance. This applies to all countries, but especially when shipping to the European Union or, starting in October, to Canada, where stricter requirements will demand advanced shipment notices before export. Failure to comply could result in significant delays. 

Having 6-digit HS codes in your Shopify store or through FlavorCloud APIs is key to calculating accurate landed costs. FlavorCloud handles the remaining digits based on the destination country. If you don’t know your 6-digit HS codes, FlavorCloud can classify them for you.  

Our AI uses your product descriptions to make these classifications, so it’s crucial to provide detailed and accurate product descriptions, including material composition, in your SKU details. 

We know it’s a slog, but we recommend reviewing your entire catalog three times a year. You can also reach out to your account team for assistance with classification. 

Optimize Processing Times to Speed Up Fulfillment 

Let’s set the stage: you’re powering through peak and are fulfilling express orders faster than standard. Or maybe you just found out your 3PL is overburdened during an explosive peak season.  

With FlavorCloud, you can build your order processing time into the days in transit that are displayed with shipping rates at checkout. Our team will work with you to set the correct processing times, allowing you to provide your customers with accurate transit times during a season when your products arriving on time is more important than ever.  

Customizing these processing times by service level is as easy as sending an email. No, really, that’s all you have to do! Email a FlavorCloud team member at support@flavorcloud.com, and a member of our team will be happy to help you out.

Forecast Holiday Demand and Optimize Inventory Management 

Looking into the past is for more than just a healthy dose of nostalgia—it also provides crucial data to help you forecast demand and optimize your inventory management.  

The FlavorCloud Analytics Dashboard provides a great starting point when preparing for Black Friday and Cyber Monday. Some of the many ways you can analyze data include: 

• Past order data: It may seem simple, but it works – by analyzing orders from previous years, you can easily identify trends and patterns.  

• Analyze % of Shipments that are Standard vs. Express: This can help with inventory management and forecasting as well as inform shipping promotions or discounts. 

• Average Order Value (AOV): This is a great way to determine if offering discounts and promotions will increase sales, as well as understand which of your markets are performing best. 

Additionally, by analyzing past returns data, you’ll be better equipped to forecast data for this year and optimize your inventory accordingly. This data will be available in your Shopify analytics dashboard. 

Our B2B airfreight offering is another way to optimize inventory. This works by offering more flexibility with getting B2B inventory across borders ahead of Peak season, especially with smaller drops.   

Essentially, rather than having to pre-send bulk inventory via ocean freight, we allow you to send more frequent, smaller shipments. This also gives retailers the ability to easily respond to spikes in demand for B2B shipments. 

Set Clear Holiday Shipping Deadlines for Customer Trust 

We mentioned it earlier: timing is everything when it comes to holiday shipping. A late delivery is on par with a lump of coal! 

Holiday shipping deadlines should be communicated upfront and often to your customers and prominently displayed throughout your site. We recommend communicating key deadlines via product pages and banners while letting FlavorCloud rates show the estimated time in transit at checkout. 

Ensure your customers can order from you with confidence by providing clear holiday shipping deadlines in multiple locations across your site. If you are a current FlavorCloud customer, you can review our holiday shipping guidance around cutoff dates here.

Communicate Clearly to Set Customer Expectations 

Strong relationships are built on communication, and the relationship you have with your shoppers is no different. Proactive and transparent communication is crucial to providing a strong CX during peak season and is useful in preparing customers for unforeseen problems. 

The numbers don’t lie: Customer-centric brands report profits that are 60% higher than those who fail to focus on CX. Fortunately, communicating with your customers isn’t rocket science. Some strategies include: 

• Encouraging early orders for a smoother experience 

• Being transparent about potential shipping challenges such as weather delays or supply chain issues 

• Sharing your contact information and support channels up front 

• Being transparent about any holiday closures or limited support hours, if applicable 

FlavorCloud’s branded tracking experience also comes in handy. It provides customers with real-time updates on the status of their order and also includes a “contact support” button within the tracking experience so they can get in touch with you as easily as possible.  

Be transparent by using shipping disclaimers and properly setting up FlavorCloud’s branded tracking experience so your customers can feel supported during the holiday rush. 

Monitor Shipments in Real-Time With FlavorCloud’s Status Page 

We just talked about the importance of communicating transparently with your customers, so it’s only fair that we are clear on communicating with you as well! One of the ways we do this is through our status page. 

Keep a close eye on our status page for real-time updates on any shipping issues or disruptions. Our goal is to improve your experience and be transparent should any issues arise.  

Bookmark our status page so that if you experience any issues, you can quickly reference it to determine if it’s isolated or related to disruptions or maintenance activities. 

Bonus Tip: Have Systems Ready to Support Returns Season 

We said we’d talk a bit more about returns, and here we are! Lots of blogs (including this one) focus on strategies for peak season, but not many talk about what comes after… The peak hangover, if you will. 

January is the start of “returns season” and you are sure to see a spike in returns. Thankfully, FlavorCloud makes international returns a breeze. We can support you with getting returned items sent back across borders.  

With FlavorCloud, you will be prepared for the post-holiday returns spike. Learn more about returns here. 

Wrapping it Up 

Peak season shouldn’t feel like a mid-season episode of The Bear: if you’re yelling and scrambling as fires rage around you, it’s going to impact your CX.  

As we discussed earlier, a seamless CX from purchase through delivery is essential to driving customer satisfaction and building new customer relationships. By taking the proper steps and planning ahead, you’ll meet customer expectations and position your business for success in the dynamic world of international shipping.