Due to a significant rise in online shopping, US retailers like Amazon, Wal-Mart and Kohl’s have failed to deliver some of the packages meant for their clients before Christmas.
These retailers were not alone, as shipping firms like FedEx and UPS also experienced this problem, suggesting that these companies were unprepared for the spike in demand.
The surge in last-minute Christmas shopping overwhelmed the company’s system, said a UPS spokeswoman. “The volume of air packages in the UPS system did exceed capacity as demand was much greater than our forecast.”
More Americans shop online during the holidays than in other periods during the year. However, the amount of shopping that took place this Christmas caught some retailers and shipping companies off guard.
Some retailers set later delivery deadlines this year, noted Mercent Corp Chief Executive Eric Best. His firm helps over 550 retailers with their online sales.
“During the holidays, we reach the limits on the capacity of these retailers,” he explained.
Meanwhile, the packages that entered UPS’ air network last Monday surpassed the 7.75 million it anticipated. The company, which ships about 45 per cent of packages in the US, also placed part of the blame on Amazon, saying some of the items are still being held by the retailer.
An Amazon spokeswoman replied, “Amazon fulfilment centres processed and tendered customer orders to delivery carriers on time for holiday delivery. We are reviewing the performance of the delivery carriers.”