At the onset of the pandemic in March, small businesses and e-commerce giants such as Amazon faced unprecedented traffic and order volumes, resulting in shipping delays and price gouging. With many businesses, from local shops to large department stores, staying closed or at limited capacity—in addition to consumers’ wavering willingness to venture out with a new uptick in Covid cases—we can expect online shopping to be the primary shopping channel this holiday.
In fact, 64% of consumers plan to purchase at least half of their gifts online. Aware of this shifting consumer behavior, SMBs are looking to e-commerce as their main source of income and primary point of engagement with customers. Yet for many, this digital foray is a first—and they don’t quite know where to start.
Small business owners are looking for insights on how to best prepare for the onslaught of online sales already underway. Here are a few tips small business owners should keep in mind to take full advantage of this unique holiday season.
Moving Online Means Getting Social
To be front and center with customers this holiday season, small businesses need to have an online presence. That is table stakes. But to build on that, small businesses need to meet buyers where they are spending a significant amount of their time: on social media. Social media usage has jumped 61% since the start of the pandemic, so seamless selling and advertising on social platforms such as Facebook, Instagram, and Pinterest will be critical.
Many e-commerce platforms provide an integrated solution with social networks, updating products, inventory and prices across sales points simultaneously. It is important that business owners leverage these technologies sooner than later, since most buyers are already making their holiday purchases.
Customers want real-time and direct communication with businesses, and social media is a great way to easily communicate with shoppers, should they have questions about products, shipping, etc. Given that, not only should business owners sell and advertise on social media, but they should monitor the channels for personal, expedited customer interaction.
Social presence is also a great way to get creative with holiday themes and messaging. Creativity is king on social media, so selling and advertising this way is a great avenue for business owners to get into the holiday spirit and garner extra visibility.
Shipping Technology Will Make or Break the Season
A social media presence will help drive increased sales, but small businesses then must keep up with demand. In essence, shipping solutions need to be up to par. No retailer will be immune from the anticipated supply and shipping disruption these holidays. At the height of Covid, a lack of multiple shipping options or reliance on a single supplier and/or distributor left many small businesses struggling to deliver products to their customers, let alone in a timely manner.
The holiday season traditionally sees the heaviest shipping volumes, but with less in-person shopping this year, we can expect an even greater influx. Small businesses need to be prepared for this. Thankfully, with so many shipping integrations available to small businesses through e-commerce platforms, merchants can focus on marketing their products and customer service.
There is a wealth of online integrations with trusted shipping technology companies (Shippo, Easyship, etc.) make it easy for SMBs to ship their products, and we’re even starting to see new shipping companies emerge with innovative, unique solutions. For example, ShipStation is a shipping technology company that allows merchants to customize packaging and labels to fit their brand.
Given the uncertainty around the timely shipping, sellers should be upfront and proactive about potential delays in order to maintain strong levels of customer service and thereby solidify customer loyalty. As an alternative to shoppers, SMBs can offer digital gifts, a great last-minute option when shipping times for physical gifts extend beyond the holiday window.
Additionally, thanks to marketplaces like Amazon, customers increasingly expect a free shipping option. To compete, small business merchants should be prepared to offer this perk to help drive sales this holidays season.
Securing strong shipping technology is also a revenue opportunity, as businesses can charge higher fees around the holidays for expedited service. This is a win for the buyer, who gets what they need in time, and for the seller, who expands profit margins during a time when every seller is vying for business.
Support the Spirit of the Holidays
Yet through all the chaos of social marketing and shipping, SMBs must remember that consumers look forward to the holidays each year. Without the ability to walk into a store, hear the music, and see the decorations, small businesses are going to need to find ways to create that ‘holiday feeling’ online.
A website redesign may be out of the question for less tech savvy business owners or those with small budgets, but there are other perks they can offer. For example, start with adding a gift wrapping option at payment or creating a new ‘holiday gifts’ product category as a more attainable holiday website boost.
Offering customers holiday discounts has always been a tradition, so continue this with e-commerce by promoting sales with social and email marketing, as well as offering holiday gift cards for those who are a bit trickier to shop for.
This holiday season will likely be an emotional time for many who are unable to see their family and friends, so another option for SMBs to engage authentically is by using online outlets (like social and email) to send well wishes to their customers. Sending an email or posting on social about the unique climate, how your business has adapted, and wishing your customers well will not only spread the holiday spirit but is an authentic way to engage and empathize with your customers during this season.
This entire year has been about adapting, as individuals and as businesses. The holidays will be yet another unprecedented experience for us all—for many small businesses, this season is make-or-break. It is my hope that all businesses take these actions to maximize selling potential this holiday season, so they can survive to see the next.
Erik Suhonen (@Esuhonen) is Vice President of Operations and Product Partnerships at Ecwid E-Commerce, a platform democratizing e-commerce technology for small businesses in over 175 countries. Erik leads global strategic partnerships, and has worked to unite Ecwid with Facebook/Instagram, Google, Apple, Pintrest, and Snap Inc., to name a few.
Small businesses stock photo by Branislav Nenin/Shutterstock
