3 Strategies to Get Ahead of the 2024 Holiday Season

The holiday season has always been a tricky time for retailers, and this year will be no different. With the inflation rate fluctuating between 3 percent and 4 percent, consumer spending behaviors have become increasingly unpredictable. How can retailers forecast the right products and channels to stock their shelves effectively in Q4? To stay agile and adapt to evolving consumer interests, it’s time to rethink strategy.

Amid these challenges, emerging technologies are proving to be a game-changer, not only reshaping the retail industry but accelerating it. Artificial intelligence-powered tools are drastically increasing the speed of putting products to site and into customers’ hands, ensuring retailers and brands aren’t caught in the cold with a stockpile of puffer jackets that might soon be “so last season.” Here are three crucial e-commerce strategies retailers should embrace today to be a step ahead of the 2024 holiday season.

1. Leverage smart inventory to match holiday shopping lists.

Holidays can be frantic, with many retailers and brands experiencing surging sales volumes or excess product stock. There’s a delicate balance between managing increased demand and committing to an overstock of items that may not sell. For instance, will a different shade of blue go viral on social media leaving you with unwanted inventory come shopping season? Investing in smart inventory management can help retailers automate and adapt in real time.

A unified system with AI-driven predictive analytics can help retailers enhance demand forecasting by predicting best-sellers and safeguarding against a “snowfall” of unsold goods once the holidays are over. Near-field communication (NFC) and radio-frequency identification (RFID) offer precise tracking and management of stock levels, ensuring that retailers remain agile and optimize stock to meet consumer needs without the guesswork.

2. Optimize a multichannel strategy for speed and scale.

AI has already become indispensable for retailers looking to optimize their market presence and drive a faster time to market during the peak period. These technologies can help streamline the journey from product onboarding to enhancing search and discovery. AI-based supplier and product recommendations allow retailers and brands to increase virtual inventory with similar products from new suppliers.

Creating a robust, AI-driven multichannel strategy is imperative during the holiday season, as consumers scour every shopping avenue to find the perfect gifts. Eighty-two percent of global consumers will visit two or more websites before buying, according to the 2023 Online Consumer Behavior Global Report by Rithum and research firm Dynata.

Retailers can use AI services to help launch new partnership models and identify where they can grow. For example, tools like automatic channel mapping can optimally place products across any selling channel to meet consumers where they are. A multichannel strategy will not only help diversify market channels but also streamline internal operations that yield lasting benefits such as improved internal communications, resolution of ongoing logistical pain points, and data-driven knowledge of specific sales channels.

3. Uplevel the customer experience, from sales to returns.

Advanced algorithms and machine learning provide a critical advantage for retailers and brands. By leveraging AI, retailers can adjust pricing automatically and dynamically as well as analyze consumer behaviors and preferences. Using these insights, retailers can create strategic promotions, such as bundling highly relevant products into single-SKU offerings that can further improve the customer experience and create a competitive edge.

This technology can also analyze crucial metrics such as country, category, SKU, average order value (AOV), and return reasons. Retailers can use this information to help accurately forecast return rates for products throughout the holiday shopping season.

Integrating AI and machine learning into every touchpoint along the retail journey can help retailers streamline operations, support expansion, and dynamically align to customer needs.

Pete Elmgren is chief revenue officer at Rithum, a provider of end-to-end e-commerce solutions.