Carriers like the U.S. Postal Service, FedEx and United Parcel Service have capacity to meet projected demand this holiday season, which is cheery news for shippers and shoppers alike.
Like last year, there’s expected to be little drama compared to struggles during the pandemic when people hunkered down at home and turned to online shopping while major carriers including the Postal Service simultaneously struggled with absences and a flood of parcel shipments.
Louis DeJoy, postmaster general, said the Postal Service goal is to make peak holiday season delivery “superior and routine.”
All told, the parcel industry has a capacity of delivering more than 120 million parcels compared to a projected holiday peak of 82 million per day, slightly less than last year, said Satish Jindel, from ShipMatrix.
A U.S. Postal Service employee works Dec. 3, 2021, outside a post office in Wheeling, Ill. Carriers expect to meet projected demand this holiday season.
But shoppers shouldn’t wait until the last minute. “It’s not a ticket to procrastination,” he said.
This is the all-important season for shoppers, and it accounts for more than half of annual sales for many retailers. Holiday retail sales are expected to increase between 3% and 4% in 2023, according to trade group the National Retail Federation.
And both Black Friday and Cyber Monday are some of the biggest shopping days of the season.
The holidays are also a big moment for carriers.
United Parcel Service is well on its way to hiring 100,000 people to meet the peak, and is “ready again to deliver the reliable service that customers depend on,” said Jim Mayer, a company spokesperson.
FedEx is also hiring for some locations but is ready for the season, said Christina Meek, a spokesperson. “Our employees around the world are ready to deliver for this year’s peak season,” she said.
FedEx delivery trucks are parked next to a conveyor belt while being loaded with packages for delivery Dec. 7, 2021, at the FedEx regional hub at the Los Angeles International Airport in Los Angeles. FedEx is hiring for some locations but is ready for the season, a spokesperson said.
The U.S. Postal Service, meanwhile, hired 10,000 seasonal workers and completed the installation of about 150 package sorting machines since the last holiday season, which along with other operational improvements will expand its daily capacity to 70 million packages, officials said
FedEx and UPS are projected to have on-time performance percentages in the mid- to high 90s, and the Postal Service could reach the mid-90s as well, Jindel said.
Shipping may be less costly for some retailers.
The U.S. Postal Service, for example, opted against holiday surcharges, though FedEx and UPS both imposed surcharges for deliveries between now and January. Nonetheless, Jindel expects there to be about half as many shipments to be subjected to surcharges compared to last year, and some other rates are lower.
How to support small businesses this holiday season
How to support small businesses this holiday season
Are you ready for the holiday shopping season? You’re not alone: More than 9 in 10 U.S. consumers plan to celebrate winter holidays and are collectively poised to spend around $960 billion, according to National Retail Federation data.
The holidays are the most crucial time of year for many small businesses. Up to 65% of small business revenue comes during the holiday season, a 2022 Quickbooks survey shows. But NRF reports that just 1 in 4 U.S. holiday shoppers plan to do some holiday shopping at small businesses, which are typically defined as having fewer than 500 employees.
These small but mighty companies comprise 99% of businesses in the U.S., produce about 40% of the country’s GDP, and employ nearly half of workers in the private sector. They’re also an important part of local communities, too. Research consultancy firm Civic Economics shows that about $53 of $100 spent at independent businesses circulates within the local community, compared to less than $14 of $100 spent at larger chains.
With the average American intending to spend $875 on the holidays this year, there’s a lot of potential to reinforce the economic strength within communities if people shop small. To help people do this more intentionally, Next Insurance compiled tips and supporting data on ways to support small businesses this holiday season.
Buy gift cards
One of the easiest ways to support a local small business is buying a present that practically everyone welcomes: gift cards.
Over half of people want to receive gift cards this holiday season, according to NRF’s survey. Most small retail businesses sell gift cards for their shops, and shoppers can often order these online. While gift cards let recipients choose their exact present, they still can show that thought was put into personalizing the present—for example, a gift card to a local bookstore is perfect for an avid reader and one to a local nursery is ideal for those with green thumbs.
Gift cards can also provide an avenue to support local businesses that don’t offer physical items suitable for gifting, such as restaurants. They also allow for gifting experiences, such as tickets to a museum or an independent theater.
Shop in-store
Shopping small can seem daunting when larger corporations often offer lower prices. Indeed, 30% of business owners are raising prices amid continuing inflation, according to National Federation of Independent Business’ October 2023 report.
Shopping in-store and keeping a pulse on discount days at small shops can help with budgeting. Three in 5 Quickbooks survey respondents reported finding the best deals in-store when shopping small.
A near-equal share said that holiday shopping at small shops is less stressful than going to large retail chains, with fewer crowds, shorter lines, and a smaller inventory to combat decision fatigue and over-buying. While individual items may cost more, shoppers may spend less overall by avoiding impulse buys and making more intentional purchases. They also can save time scrolling through user reviews (many of which may be fake) and can talk directly to shop owners who may have recommendations for quality-tested or customer-favorite products.
Plus, with a much higher rate of local reinvestment at independent businesses, shoppers can have more certainty that what they do spend will better support their community.
Attend a holiday market or bazaar
Ultrasmall companies and artisans often show up in a big way at local holiday markets, bazaars, and craft fairs. A quick search of “holiday markets near me” will usually produce expansive lists of local craft fairs throughout November and December.
Holiday markets offer a wide variety of goods and create a one-stop shop to support several small businesses at once. Even better, the host is often other local establishments, such as bars and breweries, cultural and visitor centers, or outdoors on streets or parks. Shoppers may also have the chance to grab a peppermint mocha or hot cider from vendors or nearby businesses to help get in the holiday spirit.
Post on social media
People can further support small businesses by sharing their work and engaging with them on social media. This strategy can take many forms: sharing a photo of a holiday display, participating in a giveaway, recommending or “unboxing” products in posts, or sharing and liking posts from local stores.
People giving presents from a small business can include a business card with the gift so the recipient knows where it came from—making it easy for them to tag the company on social media. Within communities, word-of-mouth and social media networks are a particularly effective way to build patronage of local businesses.
The U.S. Chamber of Commerce encourages people to use the #ShopSmall hashtag when sharing their experiences—particularly on Small Business Saturday, Nov. 25—to create a larger conversation and awareness about shopping small for the holidays.
Story editing by Jeff Inglis. Copy editing by Kristen Wegrzyn. Photo selection by Ania Antecka.
This story originally appeared on Next Insurance and was produced and distributed in partnership with Stacker Studio.
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