A new report from Ware2Go reveals some seasonal companies are seeing a major spike in sales this summer. The data comes as part of an unpublished report from Ware2Go (a UPS owned company). The report found a 151% increase in food and beverage eCommerce shipments.
Since the company uses the software from UPS to connect merchants to a distributed warehouse network, it has an insight into what businesses will need. And currently, this need is being driven by the pandemic and how businesses are operating in this environment. The change, the report says, is responsible for some businesses seeing a spike of 300% in sales in May and June.
Seasonal Business is Booming
The sharp growth is in part driven by the continuing emphasis on social distancing and the way people socialize. More people are staying home, therefore buying items which will make their stay more comfortable and enjoyable.
Some of the big spikes in sales are:
- A 385% growth by online retailer BBQ Pro Shop in May and June.
- An incredible 1,477% increase in sales early in the summer by direct to consumer beach cabana merchant.
- A 365% increase in sales in the early summer by a motorized awning, pergola, and insect screen retailer.
As the data shows, the sales are spiking because of the at-home activities people are now participating in.
A recent survey from Ware2Go says the shift in home life is responsible for new shopping and spending patterns. At-home activities such as remote work, homeschooling, and eating-in are changing how consumers and businesses behave.
While consumers are shopping more online, businesses are shifting their operations to accommodate their online sales. For restaurants, it means making delivery the primary source of revenue and optimizing the ordering, delivery and pick-up process. On the other hand, for retailers, it is streamlining online orders and connecting with warehouses to make fast deliveries.
This is changing how businesses get ready for the remainder of the summer as well as fall and winter. The seasonal spikes will likely be very different for the rest of the year and/or into the coming new year.
In the emailed report from Ware2Go the CEO of the company, Steve Denton, says, “The recent acceleration in eCommerce order mix has created a new level of complexity for merchants, requiring the ability to adapt fulfillment to shifts in consumer demand quickly.”
This is creating supply chain and fulfillment challenges for merchants that are unique because of the changing consumer habits. For retailers, large or small, the key is to find partnerships with warehouse to ensure quick delivery. The rise of the on-demand warehouse makes this possible for businesses, especially small companies with limited space.
As warehouses adopt new technologies, they make it possible for businesses to figure out how much space they will need and when. The Ware2Go platform especially addresses the warehouse needs of small and medium businesses with its technology. And as the holiday season fast approaches, gauging this need is going to be especially important.
On-demand warehousing provides a solution, much like a coworking space, to get a better handle of their inventory.
The New Era of Logistics
For seasonal suppliers navigating the challenges of consumer demand is always a difficult task. Add the uncertainty of the pandemic and it becomes that much more difficult.
This new era of logistics needs flexible solutions that allow suppliers to handle the spikes in product demand as well as the downturns. With on-demand warehousing, suppliers can better manage their storage needs. This means not having to sign a yearly contract when in fact they won’t need the full capability of the space year-round. Furthermore, this warehousing model is also providing value-added services such as 1-2-day shipping.
With no annual contracts or inventory minimums as part of its biggest selling point, small suppliers will be that much more scalable. They can now distribute their supply across the country in different warehouses. And when a customer orders, they can make 1-2-day or even same-day delivery possible and compete with online retailers.
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I work with a company that fits this profile. April, May and June were the 3 biggest revenue months in history for them.