Black Friday, Cyber Monday and more: A blessing or a curse for parcel service providers?

Buchs, November 2022. Bargain-hunting season is upon us. DPD Switzerland expects to deliver 180'000 parcels on 25 November, also known as Black Friday. This is almost 70 per cent more than on an average day and poses an enormous challenge for employees.

 

When one battle for discounts ends, another begins: on 11 November last year, the originally Chinese holiday Singles’ Day heralded the start of the peak season, which reaches its climax on Black Friday and Cyber Monday. Based on past experience, DPD Switzerland expects a volume of 180'000 parcels on 25 November. This is roughly 50 per cent more than on an average day in the run-up to Christmas, and two thirds more than on a normal day.

The increase is largely driven by deliveries to private individuals. Their share increases from 60 to 66 per cent in November and December, although the number of parcels delivered between companies also rises considerably. As the date of this heavy workload is known, however, the parcel delivery sector can prepare for it. In the peak season, DPD Switzerland temporarily increases its workforce by seven per cent.

 

«Despite a block on holidays and additional support from other departments, the exceptional volume brought about by Black Friday causes a heavier workload. Employees might therefore be required to work overtime at short notice, for which they will receive compensation on both sides of the peak season. We depend on all our employees on the peak days, and we see them work exceptionally hard – the sheer number of parcels seems to motivate everyone to take the challenge head on get it done!», says Tilmann Schultze, CEO of DPD Switzerland. On Black Friday, members of the management at DPD traditionally roll up their sleeves and help out in the distribution centres and depots.

 

Taking people, business and the environment into account, Black Friday and the other peak shopping days are both a blessing and a curse. While the peak season does mean a temporary increase in turnover, it is expensive to add more infrastructure and personnel at short notice. That being said, these shopping days in November do go a long way to lifting the pressure before Christmas, because household incomes remain constant: what goes out on Black Friday does not have to be transported again later on. This benefits service providers and retailers alike.

 

«Black Friday is not a blessing in terms of profitability. As a delivery service provider, we would naturally prefer to avoid artificial seasonal fluctuations like these. The extra money we need to spend on personnel in response to these fluctuations, especially given the current situation on the job market, cannot be kept cost neutral, let alone made profitable», says Tanja Hübner, Sales & Marketing Director at DPD Switzerland.

The express and parcel service provider expects Black Friday, Cyber Monday and Singles’ Day to remain on the shopping calendar, yet their attractiveness is on the decline. Although the significance of Black Friday appears to be fading in the USA and some European countries, other discount shopping days are on the rise. «The Chinese holiday known as Singles’ Day has reached European shores. Online retailers in particular love to use shopping days like these to build the hype. As such, I do not think that special days like these will disappear again any time soon», says Georg Burch, Operations Director at DPD Switzerland.

Lots of shoppers have started preparing for the rushes for discounts. For shippers, it is a chance to seize certain sales from the competition. That being said, Black Friday is facing increasingly loud criticism. «The new generation is more aware of the importance of sustainability, so I assume that instead of buying everything all at once, they reflect on what is actually necessary and sustainable», says Sandra Martin, Finance & Admin Director at DPD Switzerland.