As the dust settles on another peak season, many of us will be tempted to rest on our laurels. For most, preparation for peak 2025 won’t begin in earnest until summer, so now is time for a well-earned rest. While this urge is understandable, it’s important that we don’t miss out on the opportunity to reflect on this peak season and identify the valuable lessons that can help ensure peak 2025 is as successful as possible.
At J&J, we had a record-breaking peak period. The team received 622,733 orders over the 2024 Black Friday and Cyber Monday period, up 44% year-on-year. This included fulfilling and dispatching 541,592 orders over the same period, setting a new company record for single-day operations and seeing a year-on-year increase of 30%.
Below are some of the top trends and lessons we learned from peak 2024.
Price-conscious consumers
While J&J saw a record breaking peak season, the nationwide stats show that shoppers are still tightening their belts. Data from the British Retail Consortium (BRC) and KPMG Retail Sales Monitor reveals that sales through October, November and December only increased 0.4% YOY (year-on-year), which is significantly lower than expected.
It’s important to recognise that many consumers are still struggling with the effects of inflation, and are showing increased caution and consideration when shopping. This is unlikely to have hugely changed by next peak season, so brands should respond to this with value-driven promotions to entice cost-conscious customers. Alongside the typical discounts, businesses should also consider loyalty rewards, bundling products that are frequently bought together, and free shipping thresholds. J&J’s ControlPort™ platform provides total visibility with real-time order management, inventory insight reports, and stock analysis tools – offering all the data you need to help you drive efficiency through peak.
The lipstick effect
The flip side of consumers tightening their belts is the ‘lipstick effect’ – the theory that during times of economic uncertainty, more consumers will turn to small luxuries such as cosmetics. This tallies with reports from the British Beauty Council showing that makeup sales over Black Friday grew 8.6% YOY.
This effect could go some way to explaining the rising popularity of beauty advent calendars. Google Trends data shows an 18% YOY increase in searches for the item, while social media agency SAMY Alliance found a huge 368% YOY rise in social media engagement for posts about advent calendars.
Hybrid shopping
It’s been clear for a while that consumers are willing to shop in multiple ways, but 2024 was perhaps the year that cemented the omnichannel approach to retail, with Shopify reporting that 59% of UK shoppers prefer hybrid experiences. Of course, internet shopping continues to be an essential way to reach customers. Today around a quarter of all sales in the UK are done online, according to Statista, which is up from highs of 19% pre-pandemic
But the continued use of hybrid reminds us that D2C brands need to find different ways to engage with their consumers. At J&J, we helped a selection of our clients do just this in December with the launch of POP!. For three weeks during peak trading, these online-only brands took over a storefront in Soho, London, each uniquely transforming the space to connect with their customers in brick-and-mortar for the first time. The Beauty Crop’s festive Cropmas Wonderland offered access to exclusive products and after-hours events including beauty classes and wreathe making workshops. A certified B-Corp brand, Tom’s Trunks provided free repairs and hemming on their sustainable loungewear. And AYM Studio created a magical escape giving customers personalised fittings and style advice, as well as a spectacular launch party featuring live jazz, canapés, and a catwalk.
When it comes to hybrid shopping, social media can’t be ignored either, with the rise of TikTok shop and Instagram shopping. It’s important to make sure that all platforms are fully integrated and consistent so that your customers have a seamless experience, regardless of how they engage with you.
Returns are up
With the rise of ‘hauls’ on social media, and many consumers expecting free returns as standard, there has been much debate on how best to deal with product returns. According to Salesforce, customer returns during this peak period rose 28% YOY – a whopping $122 billion worth of merchandise globally! This undeniably eats into profits, with the additional logistics resources and fees required, plus the fact that consumers don’t always return items in a state in which they can be resold. Additionally, potential sales can be lost during the time it takes for a purchase to be returned, processed and relisted.
While they can never be completely avoided, returns can be minimised. For online brands, clarity on products is key. Make sure that descriptions are clear and accurate, with composition, size and manufacturing details easy to find. Failing to do this can lead not only to costly returns, but also to negative reviews and press, as influencer Mollie Mae’s brand Maebe recently found out.
For the returns that do inevitably occur, make sure that the next steps are clear for consumers, and that you have a streamlined procedure to ensure suitable items are back on the shelves as soon as possible. J&J’s clients have this as standard, with easy returns via a brand-personalised ViewPort portal that also provides structured data to help you reduce future returns. Throughout the process, your business is in full control, with the ability to specify postage options and decide what to do with the items – whether they’re inspected and restocked or forwarded to you.
In the 2024 peak period, statistics by Statistica show that the most returned online purchases by category was clothing at 29% (of the share of respondents), followed by shoes at 16% and accessories at 10%.
As we look ahead, the evolving retail landscape highlights the need for brands to remain agile, with the focus placed solely back on the customer. Price conscious customers are still seeking value-driven promotions, while the lipstick effect and related trends present opportunities within the sector. The focus on hybrid shopping reinforces the importance of omnichannel strategies and a multi-channel presence. The rise of returns also demands a smarter way to manage processes and solutions.
For brands that are looking to navigate these trends coming in to 2025, we are here to provide support every step of the way. With ControlPortTM, CommandPortTM and ViewPort, businesses are empowered to drive their operations forward and create sustainable growth. We have designed our fulfilment software to be accessible to eCommerce brands of all sizes, whether you are in your first year of trading or an established multinational enterprise. Get in touch for more information.
