Effects of the Holiday Boom on the Last-Mile

Consumer confidence and spending are high this holiday season. From online sales at e-commerce behemoths like Amazon and Walmart to sales at local mom-and-pop shops, consumers are opening their wallets for gift purchases this year. This holiday boom is brilliant news for retailers, but it also has a major effect on last-mile deliveries.

Growth in Purchases During Holiday Season

According to Deloitte’s 2018 Holiday Retail Survey, retail sales this holiday season could exceed 1.10 trillion U.S. dollars. Including both e-commerce and brick-and-mortar sales, consumers are expected to spend $1,536 U.S. dollars each on holiday gift giving this year. This boom in online and offline sales during the holiday season is great for retailers, with 78 percent of surveyed consumers indicating they planned to spend the same or more than in previous years.

The growth in purchases during the holiday season has increased steadily since 2008, according to data from Statista Research. This increase in holiday season spending is good for the economy, but it also increases pressure on retailers and delivery companies to keep up with demand.

Delivery Companies Have to Increase Their Staff

Shipping companies like FedEx and UPS increased hiring to meet Christmas and Hanukkah demand. Likewise, retailers like Amazon, Target, Nordstroms, Macy’s, and Kohl’s also increased their staff significantly for the 2018 holiday season. From RetailDive to Reuters, the reporting is clear: retailers and delivery companies are rapidly hiring to meet consumer demands during the holiday shopping season.

The increase in seasonal retail workers helps brick-and-mortar and e-commerce businesses increase the efficiency of their customer service and maximize sales opportunities. Delivery companies increasing their delivery staff and transportation fleet are better able to meet the demand of holiday deliveries. The growth in purchases during the holiday season and the increasing demand for delivery drivers is a prime opportunity for Serve Users.

How Serve can Help During the Holidays

The Serve platform can assist retailers and delivery companies in a variety of ways.

Automation

Companies using the Serve platform can automate their transaction processing and workforce applications.

This automation can increase efficiency and streamline business processes during the busy holiday season.

Successful Deliveries

Currently, when a company uses crowdsourced delivery drivers, a successful delivery is not assured. Through Serve, service providers stake tokens. They now have ‘skin in the game’ and are responsible for each of their deliveries. Their reputation on the Serve platform depends on their ability to meet and exceed delivery expectations.

Transparency

Serve brings transparency to the holiday shipping boom. When a consumer places an order with a retailer, they don’t always get the best tracking system. They might know when a package has left a major shipping hub, but they don’t know exactly where their shipment is or which delivery driver is handling their package. With our platform, Serve Users know who has their package, where it is, and when it will be delivered.

Tracking

The improvement in transparency brings better tracking throughout the supply chain. Until a package arrives on a Serve Users’ doorstep, each stage of the delivery process is tracked and verified for all to see. Shippers and consumers can monitor the entire process from shipment to successful delivery.

If you want to learn more about how Serve can help with last-mile deliveries and holiday shipping solutions, check out our website and white paper for more details on the future of retail and shipping.