In the world of e-commerce, peak periods (Black Friday, Christmas, sales, Q4…) often account for up to 50% of annual sales. But they also pose the greatest logistical challenges: saturation of warehouses, delivery delays, preparation errors, tense customer service…
Optimizing logistics costs without compromising service quality is vital to your profitability and reputation.
What methods can be used to reduce logistics costs while absorbing order peaks? How can you calculate and manage your cost per unit to make the right decisions? Should you outsource, automate or reinforce your teams? In this guide, you’ll find tried-and-tested strategies, expert advice and practical examples to help you transform every peak in business into an opportunity for growth, while keeping your margins under control.
Understanding logistics costs and their impact on profitability
Definition of logistics cost and cost per unit
Logistics costs cover all the expenses involved in getting a product to the end customer:
- Direct costs: raw materials, labor, packaging, transport
- Indirect costs: warehouse rent, energy, IT tools, administrative management
Cost per unit (or logistics unit cost) is a key indicator:
Cost per unit = (Direct costs + Indirect costs) / Number of units processed
“Controlling cost per unit is essential to improving a company’s profitability and competitiveness.” – The Iziship team
Why is optimizing logistics costs strategic during peak periods?
In busy periods, any management error (stock-outs, transport overloads, delays, massive returns, etc.) can cause your logistics costs to soar, eroding your margins and generating customer dissatisfaction. Conversely, an anticipated, controlled and optimized supply chain enables you to maintain service quality while controlling costs.
Anticipating and absorbing e-commerce order peaks
Forecast volumes and adjust resources
Good volume forecasting is the first step in avoiding saturation.
- Analyze your historical data to anticipate peaks: sales from previous years, best-sellers, peak hours.
- Plan your needs in terms of personnel, storage space and transport capacity.
An experienced e-commerce logistics provider like Iziship can help you with this predictive analysis to calibrate your resources without any additional costs or disruptions.
Streamline your supply chain with logistics outsourcing
- Outsourcing your logistics to a specialist gives you greater flexibility: you can absorb volumes without blowing your fixed costs, have access to professional tools (WMS connected to Shopify, Prestashop, WooCommerce…) and benefit from teams trained in seasonal rushes.
- You stay in control, thanks to a real-time management interface for your flows, stocks and shipments.
- A service provider like Iziship adapts the organization to each event: team reinforcement, temporary extension of storage space, flexibility of processes.
Optimize logistics processes during peak periods
Set up a detailed logistics plan
- Draw up a plan covering procurement, inventory management, order picking and crisis scenarios.
- Plan solutions to absorb an exceptional influx (subcontracting, temporary work, buffer storage).
Automate order processing and inventory management
- Digitalize flows: a high-performance WMS enables real-time tracking, inventory management, quality control, picking and packaging management.
- Automation reduces human error, speeds up processing and facilitates analysis of e-commerce logistics costs.
“Technology plays a central role in optimizing logistics during peak periods.” – The Iziship team
Optimize carrier selection and guarantee delivery
- Negotiate in advance with several reliable carriers (Colissimo, Chronopost, DPD…) to guarantee delivery times even during peak periods.
- Offer a variety of options: express, relay, international.
- Use real-time tracking tools to keep your customers informed and anticipate delays.
Team building and rush training
- Train your teams in new tools and processes, and specialize certain operators in after-sales service or returns management.
- Reinforce your workforce (temps, fixed-term contracts, service providers) during the critical period to avoid overwork and an explosion of errors.
Calculate, monitor and reduce cost per unit in e-commerce
Track logistics costs per unit in real time
- Measure cost per unit before, during and after peak activity. Include all costs (labor, energy, packaging, transport, after-sales service, returns).
- Compare with your objectives and previous years to identify areas for optimization.
Strategies for reducing logistics costs during peak periods
- Pool orders and optimize routes (grouping, cross-docking, intelligent tour planning).
- Negotiate specific volume conditions with your partners (suppliers, carriers) Q4.
- Optimize storage space: modular shelving, temporary storage, logistics overflow solutions.
- Use sturdy, suitable packaging to limit losses/returns.
- Streamline returns with a clear policy, an automated process, and rapid reintegration into stock.
“An agile, data-driven, outsourced logistics process keeps unit costs down even under heavy pressure.“The Iziship team
Managing the customer experience during rushes: transparency, after-sales service, returns management
- Communicate proactively: emails, notifications, FAQs on deadlines and return policies.
- Prepare your after-sales service to handle a higher volume of requests, by automating repetitive tasks and reinforcing dedicated teams.
- Manage returns efficiently: rapid registration, sorting, restocking, refunds, analysis of causes to improve your offers.
- Promote transparency: at Iziship, every order is filmed during preparation, facilitating after-sales service and customer satisfaction.
Technology, the key to cost-effective, flexible logistics
- Connected logistics platform: real-time tracking of orders and inventory via a WMS integrated with your CMS or ERP.
- Performance analysis: Dashboards to monitor your costs, flows and lead times, and adjust your strategies in real time.
- Connected returns management: Continuous improvement in customer satisfaction and control of logistics costs.
Practical checklist for successful e-commerce peaks
- Analyze past data and anticipate future volumes
- Adjust inventory, human resources and transport capacity
- Setting up a WMS connected to your CMS
- Outsource or reinforce logistics during rush periods
- Optimize carrier selection and returns management
- Measuring and managing cost per unit
- Automate after-sales service and streamline customer communications
- Draw lessons for the following peaks
In a nutshell
Managing peaks in activity doesn’t have to be a fatality for your margins: with the right anticipation, the support of an experienced e-commerce logistics provider, connected tools and an agile organization, you can transform these intense periods into sustainable growth relays.
Optimize your logistics costs, secure your deliveries and build customer loyalty in all circumstances with the right methods and partners.
