Holiday Shopping Trends and What They Mean for Your Warehouse explores how early shopping, eCommerce growth, and omnichannel expectations are shaping peak season operations. Learn what these trends mean for inventory planning, packaging readiness, and returns management and how proactive warehouse strategies can drive efficiency, protect products, and meet customer expectations throughout the holiday rush and beyond.
Understanding Peak Season
The holiday season is make-or-break for ecommerce and retail fulfillment. In 2024, U.S. consumers spent a record $241.4 billion online between November and December, representing an 8.7% increase over the prior year. Alongside those record sales came a surge in returns to the tune of $890 billion in 2024, an increase of nearly 20% over 2023. For operations leaders, this “most wonderful time of the year” often feels like the most stressful.
According to a recent survey, 78% of supply chain professionals say peak season significantly impacts their day-to-day operations. With surging volumes, labor instability, rising costs, and limited space, the challenges can quickly become overwhelming. While no single solution can solve every issue, smarter packaging strategies can help turn peak-season pressures into manageable, efficient operations.
Here are five common peak-season challenges and the solutions that can help keep fulfillment running smoothly.
1. Labor Shortages During Peak Season
Every year, peak demand puts enormous pressure on labor. Seasonal staff are brought in quickly, often with limited training. That inexperience can lead to slower throughput, errors or inconsistent pack-outs that increase the risk of damage.
The solution: Packaging systems that are intuitive and efficient help reduce reliance on training-heavy processes. Standardized workflows mean even temporary labor can pack accurately, protecting product and brand reputation while boosting throughput.
2. The Challenge of Inventory Uncertainty
Unexpected mishaps like short shipments and misrouted trucks make predicting inventory nearly impossible. And when items do arrive, limited warehouse capacity can be a harrowing obstacle. Storing overflow in temporary or unsafe spaces not only drives up costs but increases risks of accidents and mismanaged inventory.
The solution: Smarter packaging that reduces cube size and optimizes space utilization can unlock hidden capacity, and potentially reduce warehousing expenses. Right-sized protective solutions minimize wasted space in every parcel and on every pallet, keeping inventory organized and safer to handle.
3. Throughput Pressure During Peak Demand
High volumes strain fulfillment centers, especially when equipment bottlenecks or manual pack-outs can’t keep pace. The result: slower cycle times, longer shifts and higher overtime costs.
The solution: Automated mailing and bagging systems allow operations to scale throughput without simply throwing more labor at the problem. In tandem with automation, Pregis application engineers work alongside customers to integrate flexible workflows into existing processes. This collaboration helps keep lines moving efficiently, reducing overtime while maintaining quality.
4. The High Cost of Returns
Nothing drains profitability faster than wrong orders or damaged goods. Returns create a cascade of costs: reverse shipping, reprocessing, replacement and disappointed customers. With holiday returns reaching past $160 billion in 2024, the stakes couldn’t be higher.
The solution: Utilizing the right type and amount of packaging reduces the risk of damage. On-demand cushioning, right-sized cartons and consistent workflows all mitigate the risk of rework and replacement costs—preserving margin and customer satisfaction in one fell swoop.
5. When Packaging Choices Affect Customer Satisfaction
When orders pile up, sustainability can slip through the cracks. But choices like non-recyclable mailers or wasted materials can come back to haunt even the most efficient operations.
The solution: Sustainable solutions like Pregis EverTec® mailers offer curbside recyclability without compromising protection or presentation. By replacing mixed-material mailers with recyclable paper options, brands can reduce waste, simplify disposal for customers and demonstrate a genuine commitment to circularity.
Transforming Peak Season Challenges into Operational Wins
For operations leaders, peak season will always come with pressure, but it doesn’t have to be a nightmare. The solutions mentioned above have something in common: they answer Q4 challenges with a Total Cost of Ownership mindset—evaluating decisions from an organization-wide perspective, rather than solely considering upfront prices. From stabilizing labor and streamlining throughput to reducing damages and delighting customers, smarter packaging choices lead to smoother fulfillment, better brand experiences and stronger margins, through peak season and beyond!
At Pregis, we help organizations see beyond the chaos to the controllable. With the right systems, materials and insights, you can transform even the most haunting peak season challenges into company-wide wins.
This peak season, contact Pregis to explore how smarter packaging strategies can unlock new performance gains.
