SAP: Christmas a tricky time for retailers

The festive season is one the most challenging periods for online retailers from a logistical and customer experience point of view, says Jennifer Arnold, VP of Marketing, Asia Pacific Japan & Greater China, SAP Customer Experience (CX).
 
"Following the massive Singles’ Day, Black Friday and Cyber Monday period*, retailers have barely a month to ensure that they have enough stock for consumers to make purchases in time for Christmas. This is crucial because stock availability and quick delivery times are key factors in consumers’ completion of their online purchases.

"Our 2018 SAP Consumer Propensity Report revealed that more than one-third of Asia Pacific (APAC) shoppers abandon their online carts due to out-of-stock items, while 28% do so because of longer-than-expected delivery times."

"Online retailers may also consider offering alternative delivery methods to home delivery during the holiday period that may better suit shoppers’ needs, such as secure lockers and click-and-collect options," she suggested.

Secure lockers from Ninja Van in Singapore.

Arnold also noted that consumers are shopping for others and not just for themselves at Christmas. "The use of advanced analytics during this period plays a key role in anticipating what shoppers may want to buy for themselves versus what they want to gift to family and friends, allowing retailers to provide a more personalised experience with relevant recommendations, promotions and shipping options," she said.

"With 40% of Asia Pacific shoppers expressing a desire for a physical store to test products before purchasing according to our research report, online retailers can look to provide this tactile experience by setting up their own short-term pop-up stores or renting temporary space in an existing outlet.

"Alternatively, retailers can look to virtual or augmented reality technologies to help consumers picture how products will look and work in real life, as the report reveals that 39% of consumers would like this capability," she added.

*Singles' Day was on November 11. Black Friday followed on 23 November, with Cyber Monday on the 26th of the same month.