Online out-of-stocks remain high as holidays approach
Customers searching for last-minute holiday gifts on the Internet may come up empty-handed.
According to data from the Adobe Digital Index, on Monday, Dec. 21, the overall out-of-stock rate for e-commerce sites was 14%. This ties the online out-of-stock rate for Cyber Monday (Nov. 30) and means that more in one in 10 items displayed on retailers’ e-commerce sites was unavailable for customers who attempted to make a purchase.
Mondays in general have had some of the highest online out-of-stock rates throughout this holiday. The rate hit 15% on Monday, Dec. 7. In addition, general online out-of-stock rates are running 10%-15% higher than during the 2014 holiday period.
Obviously this is bad news for consumers seeking last-minute gifts and the retailers who are leaving them disappointed. But retailers can at least take heart in the fact this problem is symptomatic of several positive trends.
One, general out-of-stock rates are partially boosted by extremely high out-of-stock rates in the toy category. This likely reflects the popularity of categories related to popular films such as “Star Wars” and “Minions,” and is good news for any retailer selling these items.
Two, e-commerce has been growing in popularity this holiday season. For example, according to earlier data from Adobe, a record $2.98 billion was spent online during Cyber Monday, a 12% increase from the prior year and making it the largest online sales day in history. And retailer problems in meeting on-time deliveries and keeping their sites up during Cyber Week also suggest increased loads of online traffic and purchases.
Third, a large number of retailers have been offering expanded omnichannel offerings this holiday season, such as buy online pickup in store, curbside pickup, etc. This results in a “mix and match” fulfillment strategy that may drain online inventories while increasing the convenience for consumers who get their goods this way.
Obviously retailers will need to tweak their online replenishment and fulfillment for the 2016 holiday season, but overwhelming consumer demand is not the worst problem a retailer can face in the all-important last two months of the year.