Retailers and carriers are upgrading their logistic network by engaging more number of temporary holiday employees to increase their bandwidth in shipping the orders. It looks like most of the online shopping platforms are receiving 10x times of orders during the Christmas season for the last couple of weeks. Many shipping companies are facing a terrible shortage of men and material for delivering the goods to the customers at the proper delivery time. FedEx and UPS are the leading shipping companies around the US who are in charge of delivering goods from online stores. These stores are getting a huge number of products that need to be shipped within a short span of time.
These shipping companies are expanding their weekend operations for processing the orders. It has requested the retailers to use their shipping network for delivery. Retail shops are providing many offers with a motive to push the buyers to purchase the products much prior inorder to traffic. In recent times we could able to see many big players in the retail business are preferring to use their physical store in addition to the distribution centers for shipping their orders. These retail companies have advised their stores to handle more volume of orders every day. For an instance, Best Buy is one of the leading retail companies in the US has expanded its stores from 250 to 1000 for delivering online products.
This initiative has been taken forward by many companies after finding most of their shipping carriers are 100% filled for the last couple of months. Even these companies are planning to increase their number of shipping carrier by placing more delivery vehicles. Many startup companies are developing software products for improving logistics which helps shipping to optimize their progress. Amazon has been using their own shipping service for delivering most of its products around the world. The leading online retails shopping accompany is less dependent on third-party sources for supplying the goods. Even Amazon has advised its customers to buy the products earlier rather than waiting for the last minute.
During the press conference, Brian Olsavsky, Amazon’s chief financial officer has expressed that they will be pushed to a tight situation in the upcoming days especially during the Black Friday sales where the majority of the sales will happen around the US. Online holiday sales are expected to reach new heights when compared with the previous year’s orders. Analytics connected by many international organizations suggest that online sales might fetch handsome of revenue to the companies during this period. Many online shopping retail companies have already announced their new offers for the upcoming festival seasons. It added that total revenue of $189 billion will happen during the online sales holidays. This number is equal to a 33% increase compared to last year.
Experts in the field of e-commerce suggest that companies have to rely on startup software companies for processing their orders at the time of the great spike in online orders which happened during the time of the pandemic. Many shipping companies were already discussing bringing in some innovative measures for processing the orders. For processing the huge number of orders, FedEx is hiring 70,000 workers in and around the US in their various branches. UPS has gone one step further by employing around 100,000 temporary employees.