#SmallBusinessAdvice

13 Best Logistics Tips for Small Businesses

Vivien Christel Vella
Vivien Christel Vella
Sr. Manager Global Content Marketing
4 min read
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This article covers
13 logistics tips for small businesses
Frequently asked questions about small business logistics

Peak Season is nearly here – the busiest time of year for all the SME Superheroes! We know you’ll have a million things on your to-do list, from anticipating seasonal inventory demand to meeting shipping deadlines. But don’t worry—we’re here as your trusty sidekick to help you manage the rush and more! We'll cover the logistics tips for small businesses to ensure you're ready not only for peak season but all year round.

13 logistics tips for small businesses for the peak season and more

1. Plan your seasonal inventory needs

1. Plan your seasonal inventory needs

It’s called Peak Season for a reason; it’s not unusual for some retailers to make over 50% or more of their annual sales in the month up to Christmas. To avoid overstocking or understocking, leverage inventory management software. It will analyze your past sales data and seasonal trends to help you more accurately forecast demand. This software can help track your stock levels in real time and automatically send replenishment orders to suppliers so that you’re never left short.

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2. Tap into AI

Artificial intelligence is helping small businesses transform their logistics – saving them time and money. A few examples of technology to consider as the Peak Season approaches:

  • Automated warehouse systems – robotics can manage key warehouse processes such as picking, sorting and packing – fulfilling orders more quickly and accurately than humans.
  • Dynamic pricing – smart software driven by AI and machine learning will read your sales data in real time and then automatically adjust your pricing accordingly. For example, it will apply discounts on your website to slow-moving stock.
  • Automate routine inquiries – AI can help your business offer exceptional customer service over the busy season. For example, AI chatbots can respond to customers’ queries more accurately and use past customer browsing data to offer personalized gift recommendations. And, unlike human agents, chatbots are available 24/7 and able to handle an unlimited number of concurrent interactions – meaning your business will never miss a sales opportunity.

 

AI in logistics: The key to better productivity

The Retail AI Council reports that 36% of employees use generative AI for tasks such as inventory management, sales forecasting, and operational efficiency1

                                                                                                                                                                                                    

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3. Use an omnichannel platform for content creation

As any e-commerce business knows, customer interactions and sales often occur in several places – including online marketplaces, in apps, and on social media. An omnichannel marketing platform will help you deliver consistent messaging across all channels. The software will analyze customer data to build a detailed picture of customer intent and preferences and then create personalized messaging. This means your business can deliver more engaging and relevant campaigns.

 

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4. Get your website in tip-top shape

Your e-commerce website will receive an increase in traffic during the Peak Season. Is your site prepared to manage the surge in traffic without the page-load speed suffering? Here is how you can check and prepare:

  • Optimize images, leverage browser caching, and consider a Content Delivery Network (CDN) to ensure fast loading times.
  • Conduct load testing to simulate peak traffic conditions and identify potential bottlenecks or performance issues.


Make your website welcoming to gift buyers, too:

  • Put holiday promotions front and center on the home page to engage visitors
  • Segment your website’s product pages into different gift categories such as “gifts for him”, “gifts for children” etc.
  • Allow customers to create and save wish lists

You can check off the other essential e-commerce website features with our dedicated guide.

5. Don’t forget about mobile

91% of shoppers make online purchases using their smartphone2, so make sure your e-commerce website is optimized for the small screen. Have you thought about larger font and button sizes? Removed excess logins and pop-ups? Kept form fields to a minimum? These factors are crucial to any successful m-commerce strategy.

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6. Shout about your sustainable e-commerce policies

Sustainability is no longer a niche subject for consumers, with many choosing to be more considered with their purchasing choices. So, whatever your eco policies are – from carbon insetting to offering eco-friendly packaging – be sure to be clear about them on your website. It might just be the difference between a customer choosing your brand over a competitor.  

7. Use your packaging as a marketing tool

The main function of your packaging is to protect your products – so it should be robust, transportable, and easily opened and closed for returns. However, it can also serve as a powerful marketing tool. Stylish, innovative packaging and personalized messaging or storytelling can add a little something extra to your customers’ purchases.

Remember, too, that consumers are increasingly eco-conscious when shopping online. Consider using sustainable product packaging, but be sure to understand the pros and cons of each packaging material in terms of renewability, timeframe, energy sources needed, and availability. If possible, provide an option for customers to send back their empty packaging in return for a discount. You can then recycle or reuse it. 

 

8. Keep in close touch with international suppliers

8. Keep in close touch with international suppliers

It’s common practice for sellers to source products and materials from overseas manufacturers, where production is cheaper. But times are trickier than ever for global supply chains.

If you’re relying on manufacturers from overseas, it’s important to have regular communication both in the run-up and throughout the busy period. You should be checking in with your suppliers several times a week for status updates on all purchase orders so that if there are delays or problems, you can react quickly to find a solution that won’t disappoint customers.

Relying on just one supplier will have its risks, so it’s worth considering diversifying your suppliers. Having more than one gives your business a safety net should unexpected events occur, and there will also be fewer bottlenecks in your production line at times of peak demand.

 

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9. Streamline your processes

Aligning your supply chain processes is something you should be doing for your e-commerce business all year long, not just during Peak Season. An order management system (OMS) will monitor data from your various systems to track sales, orders, inventory and fulfillment so that you can get your orders to your customers cheaper and faster.

Ultimately, an agile supply chain is a strong supply chain, and an OMS will help you build that by informing you immediately when orders are canceled, inventory quantities change, or there are delays with fulfillment so you can pivot quickly.

10. Plan your staffing needs

If you’re going to need extra staff for your warehouse or to manage overflow storage facilities, make sure to begin hiring as soon as possible. This helps give you more time to onboard the teams and train them to deal efficiently with all your orders. If possible, surge test typical peak demands in your warehouse before the season begins. After all, efficient order fulfillment and customer service are what keep those customers coming back.

 

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11. Offer flexible holiday shipping

Whilst your business will be busy juggling a million things over the Peak Season, the main thing your customers will care about is delivery. They want flexible and convenient delivery options – and won’t hesitate to go to a competitor of yours if you can’t meet their wishes. This is where partnering with a reliable logistics service that offers on-demand delivery can be beneficial, especially for small businesses. DHL Express’ On-Demand Delivery will give your business an advantage, allowing your customers to choose exactly when and where their orders are delivered – with full tracking, too. 

“DHL Express is committed to remaining the partner of choice during the busy end-of-year peak season. Our flexible international network combines high-quality service and reliable access to capacity, which allows businesses to react in real-time to changes in consumer demand, supplemented by digital tools that help them to improve the customer experience and optimize pick-up and final mile delivery.” - John Pearson, CEO at DHL Express

 

12. Make returns work for you

Frustrating as returns are to manage, giving customers a simple, stress-free experience can be the difference between them coming back to your store or not.  Therefore, ensure that you have a clear returns policy in place.

Enabling your customers to drop their returns into a parcel locker means your logistics partner can collect more of them from a single location. Not only will this bring costs down, but it will also result in fewer carbon emissions.

There are things you can do to make returns less likely in the first place – such as including detailed information and high-quality photos and video on your website, so customers can see exactly what they’re buying.

13. Plan your after-sales strategy in advance

Peak Season may bring new customers to your store, and you’ll want to ensure they return. So, while it may seem like thinking a long way ahead, now is also the time to put together an after-sales strategy for your e-commerce business.

Sending a thank-you email is a nice touch, and inviting customer feedback will help you improve your service. You could also send a follow-up email to recommend other products from your store or offer the customer a discount on their next purchase. It all strengthens the links between your brand and your customers and improves the chances of them buying from you again.

Finally, we hope you’ve found this guide useful and wish you every success with Peak Seasons and beyond!

Frequently asked questions about small business logistics

For retailers, both e-commerce and physical stores, Peak Season is the busiest shopping period of the year. Typically kicking off on Black Friday (Friday 29th November this year), it is followed by Cyber Monday (Monday 2nd December), and then Christmas. Furthermore, in recent years, China’s Singles’ Day (Monday 11th November) has also gained momentum not just for those selling in China but across the world. This means it should be in your sale season calendar, too.

Many e-commerce retailers offer deals earlier and earlier each year to cash in on the buzz, so your business should consider preparing for your upcoming deals as soon as possible.

Global online holiday shopping sales reached a staggering US$1.17 trillion in 20233

Peak Seasons are crucial for small businesses, both physical retailers and e-commerce businesses, because they offer a golden opportunity to significantly boost revenue and profitability.  The increased consumer spending during these periods, driven by holidays and special events, can potentially translate to a substantial surge in sales.  By effectively planning for Peak Seasons, small businesses could capitalize on this heightened demand, increase their customer base, and build brand awareness. 

Efficient logistics management ensures that products reach customers on time and in perfect condition, fostering customer loyalty and positive brand perception. Streamlining logistics processes, such as order fulfillment, inventory management, and shipping, can also help small businesses reduce operational costs and improve overall efficiency.

Small businesses often operate with limited resources and budgets, which means they will require flexible and cost-effective logistics solutions that can adapt to their specific needs. Typically, they rely on third-party logistics providers or utilize technology to streamline operations and maximize efficiency.  

Small businesses often operate with limited resources and budgets, which means they will require flexible and cost-effective logistics solutions that can adapt to their specific needs. Typically, they rely on third-party logistics providers or utilize technology to streamline operations and maximize efficiency.  

In contrast, large businesses typically have extensive resources and complex global supply chains, allowing them to leverage economies of scale and invest in sophisticated logistics infrastructure.  This often involves managing intricate distribution networks, warehousing operations, and transportation systems to support high-volume orders and international distribution.

Attention SME Superheroes! With Peak Season nearly here, we know there are a million things for small businesses to consider. But don’t fret! Use our dedicated Peak Season Sales & Logistics Checklist to ensure your business is fully prepared to cash in on every opportunity. Happy selling!

Download your free checklist here