OSA market will even continue to grow to a whopping $ 11.6 Bn by 2034
The festive season is a unique chance to boost sales and make customers happy for ecommerce organisations.
Demand forecasting, leveraging technology and efficient promotion management during festive season can help ecommerce businesses to boom
As consumers across the world embrace ecommerce businesses, OSA has become extremely critical in the current and future online markets. With the latest numbers from Future Market Insights, the global on-shelf availability solution market is set to hit the desired figure of $4.8 Bn by 2024.
Analyses show that this market will even continue to grow to a whopping $ 11.6 Bn by 2034, such that there is a healthy CAGR of 9.1% in the market during the research period of the forecast. These figures explain the growing need to manage OSA as ecommerce firms seek to deliver what consumers want, especially during holidays such as this festive season.
On the one hand, the festive season is a unique chance to boost sales and make customers happy for ecommerce organisations. But with the growing demands comes the question of availability – having the right product at the right time and place.
OSA is important during this period because a stockout situation will mean no sales, unsatisfied consumers, and loss of brand loyalty. For ecommerce businesses gearing up for the festive season, here is the ultimate guide to improving on-shelf availability.
Demand Forecasting And Inventory Planning
Accurate demand forecasting is the foundation of high OSA during the festive season. Ecommerce businesses must analyse historical sales data, market trends, and competitor behavior, while also considering potential events, holidays, and promotions that could drive demand. Leveraging analytics and artificial intelligence can significantly enhance these forecasts, ensuring that inventory levels are aligned with expected demand.
Inventory planning should be conducted in tandem with demand forecasting, taking into account supply chain disruptions, supplier capabilities, and lead times. While it’s advisable to stock up on frequently sold products, businesses should avoid overstocking to minimise holding costs and prevent markdowns postseason.
Strengthening Supplier Relationships
The festive season is one of the important periods requiring suppliers to meet their commitments at high levels. It is necessary for ecommerce businesses to clearly convey the demand that they expect in the future to their suppliers so that the required capacities are available to meet such demands.
Loyal supplier relationships mean that a company will be accorded special treatment, including priority on the stocks to be restocked and the time that it takes to have them restocked. Also, risks of supply chain disruption may be addressed by the expansion of the suppliers’ list. This means that if one supplier is unable to supply essentials, having other sources available can help minimise the chances of running out of stock.
Leveraging Technology for Real-Time Inventory Management
Organisations need to employ real-time inventory management systems in order to maintain OSA during the festivities. These systems facilitate the monitoring of stock in different sales outlets and stores, giving a clear view of inventory. These systems can then be linked to ecommerce to automatically update stock status so that the customers do not get a wrong impression of what is available in the warehouse.
Furthermore, real-time inventory means that inventory management decisions have to be made in a short span of time. In cases where a particular product is selling much faster than expected, call for automatic reordering or transfer of stock in anticipation of the popular item.
Optimising Fulfillment And Logistics
The idea of smooth functioning of fulfillment and logistics is key to sustaining OSA during the festive period. Fulfillment centers should be evaluated and possibly altered to make certain that the products are picked, packed, and shipped as quickly as possible. This might have entailed efficiencies in the processes of the warehouse, hiring of more workers, or outsourcing the extra load to a third-party company.
Another important element that must be taken into consideration is last-mile delivery. Cutting costs and improving delivery reliability can be accomplished through choosing credible courier services and providing numerous delivery choices for customers, and they can also help minimise stockouts. One might also suggest adopting the distribution center strategy, which means warehousing is closer to certain key markets to reduce lead time and increase OSA.
Dynamic Pricing And Promotions Management
For OSA, particularly during the festive season, price and promotional strategies can play a great deal. It is recommended that ecommerce businesses should implement dynamic pricing models as a way of controlling the demand, especially where the retail price can be changed based on the existing sales data and available stock.
For instance, if a given product is going around very fast in the market, some price increases can be made in order to regulate demand and scarcity. Promotions also must be accurately determined and controlled. Although using discounts and special offers promotes the products, it also contributes to exhaustion. Promotion decisions should be made with consideration to stock status, firms should offer either substitute options or pack slow-movers together with the best sellers in order to ensure equal sales of all stock.
Enhancing Customer Communication
It demonstrated that customers should be informed clearly and in advance when OSA is in operation during the festive season. If a product is unavailable or lost, it is important to advise the clients to prevent cases of disappointment. That is why revealing similar goods’ availability, giving options to pre-order, or offering back-in-stock notifications also contribute to maintaining customers who might switch to other suppliers.
Moreover, businesses should employ customers’ information to get in touch with the customers in subsequent purchases and remind them of potential products they have bought in the past or related to. This does not only improve the experience of shoppers but also creates demand for the available products in the market.
Post-Season Analysis And Continuous Improvement
After the festive season, conducting a thorough performance analysis based on OSA key indicators is crucial. Businesses should evaluate areas of success and identify opportunities for improvement. Key metrics to assess include the number of stockouts, replenishment times, and the accuracy of demand forecasts. Insights gained from this analysis should be used to refine processes, strengthen supplier relationships, and enhance inventory management for future high-demand periods.
Maintaining availability during the holiday season is a difficult but essential process for many ecommerce companies. Through demand forecasting, building supplier relations, being able to manage inventory in real-time, choosing the best options for fulfilling orders, using dynamic pricing options, being able to communicate effectively with customers, and analysing data after the season, businesses can increase their sales while also providing a good shopping experience for the consumer. These strategies assist not only in getting through the holiday season but also in excelling during the period.
