What 400 top e-commerce brands are stressing about this peak season—and how to get ahead

As Black Friday and Cyber Monday approach, e-commerce brands are feeling the pressure. In a recent survey of 378 leaders of e-commerce operations, three main challenges emerged that could make or break their peak season success. These concerns aren’t just about missing a few deliveries—they’re about ensuring smooth operations, meeting customer expectations, and keeping costs manageable at scale. And while these challenges are felt acutely during peak season, addressing them now can also set your business up for success well into the year ahead.

Here’s what leading e-commerce businesses are up against…

Nailing the fundamentals and making the right tech bets is a top concern this season

Many respondents highlighted the complexity of managing warehousing, logistics, and third-party carriers as their most significant challenge. As businesses scale, maintaining efficiency without sacrificing reliability becomes a delicate balancing act.

What they’re saying:

"Currently, we face challenges in optimizing our supply chain and integrating AI into our operations. The unpredictable market demands and the rapid pace of technological advancements make these tasks daunting." — Operations Manager, $50M–$100M revenue

"Significant growth in 3 businesses has put pressure on supply chain and distribution. Looking for alternative solutions." — Logistics Director, $10M–$50M revenue

Why it matters:

Supply chain issues have always been a challenge, but during peak season, the stakes are higher than ever. Any disruption—from warehouse bottlenecks to last-mile delivery delays—can lead to missed deadlines, unhappy customers, and lost revenue. Failing to address these issues now could lead to higher operational costs and long-term damage to customer trust.

How to get ahead:

• Diversify your carrier network: Working with multiple carriers reduces the risk of disruption if one provider experiences delays or capacity issues. Using tools like Shippo’s shipping API, you can optimize fulfillment based on cost, carrier, speed, or location—helping you stay nimble during peak times.
• Invest in real-time tracking: Keeping customers informed with accurate package tracking and delivery updates can mitigate frustration during delays. Real-time insights into carrier performance can help you identify issues before they escalate.
• Optimize your returns process: Leverage your current shipping software (or work with your 3PL) to ensure returns are processed smoothly and that customers are updated throughout the process. Automating this step can reduce operational strain and improve customer loyalty.

Inventory management challenges grow as businesses scale

Inventory accuracy and efficiency are critical concerns for many businesses, particularly during peak season. As e-commerce brands scale, maintaining real-time updates and accurate stock levels becomes essential to avoid costly mistakes and ensure a seamless customer experience.

What they’re saying:

"Challenges include inventory accuracy and maintaining product availability during peak times." —Warehouse Manager, $10M–$50M revenue

"We need better systems to manage stock levels and prevent over-selling." — Supply Chain Executive, $50M–$100M revenue

"Express delivery during the season—we need to extend cut-off days based on faster delivery with guarantees. Inventory management system problems are causing incorrect bookings."      —Operations Director, Non-perishable Goods, above $500M revenue

Why it matters:

Inventory management errors during peak season can result in overselling, stockouts, and delays in order fulfillment. When customers don’t get their orders on time, it can lead to negative reviews, damaged brand reputation, and a decline in repeat business. Even with inventory locked and loaded for the season, poor staging or distribution can still impact delivery timelines.

How to get ahead:

• Create value inside your existing network: While it may be too late to drastically shift your overall warehousing strategy this season, it’s still possible to make minor adjustments for big gains by shifting where certain inventory is staged. Allocate stock across your current locations more strategically, ensuring products are positioned closer to your most active customer regions to reduce delivery times.
• Explore on-demand warehousing options: If you need extra capacity for the peak season, consider using on-demand warehousing solutions. Providers like this shine during the holiday rush, allowing you to pop up capacity as a temporary node in your network and wind it down as the seasonal demand fades. This helps to shorten last-mile routes for speed when you need it most.
• Offer alternatives for out-of-stock items: Keep a close eye on fast-moving items. For products that sell out, offer customers waitlists or rain checks, complete with a discount when the item is back in stock. This gives you a way to recapture potential lost sales, and keeps customers engaged rather than disappointed.

Managing rising shipping costs remains a priority

Shipping costs are a significant concern, especially as businesses feel the pinch of rising delivery expenses and holiday surcharges. Many e-commerce brands are focused on finding ways to reduce logistics costs without compromising on service quality.

What they’re saying:

"We’re constantly seeking ways to reduce delivery costs and streamline processes." —C-level Executive, $50M–$100M revenue

"Freight and shipping cost control is a key focus for us this season." —Supply Chain Manager, $10M–$50M revenue

Why it matters:

Balancing shipping speed with affordability is a tough act during peak season. With the rising costs of logistics, businesses are forced to either absorb these costs or pass them on to customers, potentially losing them to competitors. The challenge is finding ways to remain competitive without letting shipping costs eat into your margins.

How to get ahead:

• Compare carrier rates in real-time: Use solutions like Shippo’s API to compare shipping costs across multiple carriers, ensuring you’re always getting the best rates for your shipments. This is especially helpful for last-mile delivery.
• Optimize routes and delivery options: Optimizing delivery routes and exploring carrier alternatives (like regional or local carriers) can help reduce costs. Consider splitting shipments to utilize the most cost-effective carrier for each region or delivery type.
• Offer tiered-shipping options: Give customers the choice between free, slower shipping or paid expedited options. By letting them choose, you can minimize costs while still offering fast shipping for those willing to pay for it.

Fine-tuning your operations for peak season success

The challenges facing e-commerce businesses this season—supply chain disruptions, inventory management hurdles, and rising shipping costs—are widespread. By taking proactive steps now to optimize your existing resources, from leveraging shipping software to strategically staging inventory, you can not only ensure a smoother and more profitable peak season but also set your business up for long-term success.

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