9 holiday retail planning tips to help boost small business sales

David Gyung // Shutterstock

9 holiday retail planning tips to help boost small business sales

According to the National Retail Federation, holiday sales increased 4% in 2024 to a record $994 billion during November and December alone. That make-or-break moment for the retail industry proves how important retail planning and early preparation can be for small business profits and longevity.

The retail holiday season can bring record sales — but it can also bring more risks to your door, including crowded stores, more deliveries in transit, and small teams stretched thin. Mishaps can be prevented with proper planning before the holiday rush. But if accidents occur, the right retail business insurance protection can help keep you earning during the (potentially) most profitable time of year.

Follow these nine tips from NEXT to help you navigate the busiest time of year with less stress.

1. Plan more, stress less

Whether you sell in a physical store, online or both, holiday planning starts well before the decorations go up. Roberta Perry, owner of ScrubzBody Skin Care, recommends thinking through your operations and prepping early. “Have boxes put together and tissue paper stuffed in. Have thank you cards pre-written to include in the online orders. Have a dedicated shipping area that has all the pieces you want to include in the box.”

Get organized to help avoid last-minute stress and focus on a great customer experience.

• Review last year’s sales. Look at old receipts, point of sale (POS) reports and order histories to see which products moved fastest. This can help know what to order more of (or less) this year.
• Build your holiday calendar. Mark down key dates like Black Friday, Small Business Saturday, Cyber Monday, shipping cutoffs and local events that might bring in more foot traffic. Create a calendar to help you stay on top of promotions, social media posts and inventory orders.
• Organize your space. Get orderly around stockrooms and wrapping stations, as they can get messy fast. For e-commerce, double-check that product listings, photos and checkout steps are polished and mobile-friendly. Prep now for smoother operations when the season picks up.
• Evaluate your return policy. A 30-day return policy might deter shoppers from buying early. Consider adjusting your policy to allow for a longer return window for anything bought Nov. 1 through the end of the year.

The more organized you are before the holidays, the more time you’ll have to focus on connecting with customers and making sales once the season gets busy.

2. Don’t overbuy holiday inventory

The holiday season doesn’t necessarily mean you need more inventory. It means you need the proper inventory. Excess inventory can tie up cash, while underestimating demand can leave you scrambling.

• Make plans for easy reorders. Instead of loading up early, ask suppliers about quick restock options. Local vendors or drop-shipping partners can be helpful back-ups if demand surprises you.
• Track inventory in real time. Inventory can disappear quickly during the holidays. Shops can use POS systems or low-stock alert apps to simplify day-to-day inventory management.
• Set clear expectations. If you sell online, post shipping deadlines and product availability notices early to avoid last-minute customer frustration. In-store, let shoppers know when hot items are running low to encourage quick decisions.

3. Strategize holiday promotions that work

Big-box retailers have massive holiday campaigns. But small businesses can stand out with thoughtful, well-timed personalized promotions.

Perry says her store’s buy-one-get-one (BOGO) event on the Friday before Thanksgiving is their biggest sale day of the year. “It’s a chance for customers to stock up twice as much for themselves and for gifts. But more importantly, having our sale before the holiday crush starts gives people a fun chance to shop without the push and chaos of Black Friday and beyond.”

Other promotions ideas:

• Focus on gift sets and bundles. Showcase well-packaged products that go together as a gift. Sell them at a discount to make shopping easier for customers and help you move more inventory with every ring.
• Keep it simple. Pick one or two manageable promos, like an early-bird discount in November and a last-minute gift deal in December.
• Cross-promote. Team up with another retailer for a joint special offer (“Buy from us and get 10% off at [partner shop]”).
• Create urgency. Remind shoppers about shipping deadlines online or post “countdown deals” in-store.
• Include a free gift — no matter how small — with purchase. Perry adds that even if you can’t afford a big discount, you can still make promotions work. “I always love a gift with purchase, especially if it complements what they bought,” she says. “My soap maker makes hundreds of samples for me to include in every purchase bag or box on our BOGO day. It’s a great gift and a chance for customers to try another product we carry.”

Even simple, scrappy promotions can create buzz and keep customers coming back.

4. Use digital platforms and social media channels for sales

Social media and simple digital tools can help small retailers punch above their weight.

• Show behind-the-scenes moments. Share short videos of holiday prep, staff wrapping orders or new arrivals. These glimpses make your business feel approachable.
• Create quick gift guides. Curated gift guides or personalized product recommendations help busy shoppers quickly find the right present. Use Instagram Reels, TikTok videos or a blog post to highlight product suggestions such as, “Top 5 Gifts Under $25” or “Gifts for Teachers.”
• Run small giveaways. Ask followers to share your post or tag a friend for a chance to win a gift card or product bundle. It’s low-cost and boosts visibility when you need it most.
• Send reminders. Use SMS or email campaigns to remind customers about shipping cutoffs, holiday hours or last-minute gift ideas.
• Keep your info current. Update your Google Business Profile, social bios and your website so customers always know when and how to shop.

Post regularly — even just a few times a week —to keep your shop top of mind and to remind customers to choose your local business over large retailers.

5. Get your e-commerce site holiday-ready

Small tweaks to your online retail shop ahead of the holidays can make a big difference. Jeff Moriarty, marketing manager for Moriarty’s Gem Art, estimates that about 25% of holiday company sales are from customers who’ve visited their website earlier that year. “It’s so important to think about the people that were coming three to four months before the holidays,” he says.

Focus on optimizing areas that matter most to customers during the busy season:

• Check that your website is performing at its best. Fast load times, mobile-friendly pages and a website that can handle traffic spikes are critical. Free tools like Google PageSpeed Insights can help flag issues before they cost you online sales.
• Offer flexible payments. Credit cards are standard, but many customers prefer digital wallets like Apple Pay and Google Wallet or services like PayPal and Venmo. Multiple payment options can create a smoother checkout experience, especially for mobile shoppers.
• Simplify checkout. Complicated checkout systems can be an ecommerce sales killer. Allow guest checkout without requiring an account. Send reminder emails on abandoned carts with a direct link to finish purchase. Even small time-saving and convenience changes can help boost your conversion rate during the holiday rush.

A well-optimized website doesn’t have to be fancy — it just needs to be clear, fast and easy to shop.

6. Hire extra help before you need it

The holiday season can stretch small teams thin. Short-term help can take the pressure off, give customers more face time, and potentially pay for itself during your busiest months.

• Start early. Part-time workers, students on break or family members can make a difference if they’re onboarded before the December rush peaks.
• Be flexible. Seasonal hires may only be available evenings or weekends, but that can help cover your busiest hours.
• If cost is an issue, get creative. If hiring feels out of reach, trade shifts with another local shop owner, ask a reliable friend or family member for backup or explore online short-term/hourly staffing services.

7. Cater to your customers (because they’re stressed out, too)

The holiday rush doesn’t just bring more sales — it brings more questions, returns and frazzled shoppers under pressure. How can you turn those challenges into positive experiences that keep customers coming back?

• Set clear policies. Post return and exchange rules where customers can easily see them — at checkout counters, on receipts and on your website. Clarity prevents misunderstandings and builds trust.
• Streamline common requests. Create a FAQ for online shoppers that covers shipping deadlines, tracking and returns. In-store, set up signage or a quick “gift help” area with bestsellers, pre-bagged items or gift wrapping.
• Train for tough moments. Whether it’s long lines or shipping delays, holiday stress is real. Coach staff (and prep yourself) to stay calm, listen and offer solutions.
• Stay reachable. For your online store, make sure customers know how to contact you. Even a quick acknowledgment of an email or message can help prevent frustration.

Holiday shoppers may not remember every sale, but they will recall how you treated them and how their shopping experience made them feel. These interactions could turn a one-time buyer into a loyal customer.

8. Create holiday cheer that motivates sales

A little holiday spirit can go a long way. A festive shopping experience can attract attention and make customers feel good about buying from you.

• Add seasonal touches. For brick-and-mortar shops, string lights, turn on the holiday playlist or create a holiday photo spot for customers. For online stores, add a twinkling banner, festive product photos or holiday packaging that makes unboxing feel special.
• Offer gift wrapping. Free or low-cost gift wrapping saves customers time and makes your products instantly gift-ready. Online sellers can include wrap options at checkout. Local shops can set up wrapping stations near the register.
• Add a personal touch. Handwritten thank-you notes, a small seasonal freebie (like candy canes or stickers) or friendly holiday greetings can help make customers feel valued — and more likely to keep shopping small.

9. Prioritize fulfillment: Know how to pack it, wrap it and ship it

Take a hard look at your operations and fulfillment before the holiday rush hits.

• Provide clear shipping details. Shoppers want reassurance that gifts will arrive on time. “They want to know if they’re going to get it by Christmas,” Moriarty says. “We have supporting language that shows how long it takes to ship and when they’re guaranteed to receive it by.” Information on product pages and checkout screens needs to show estimated delivery windows and the final day to order for holiday arrival.
• Choose the right packaging. Select the right material to protect products in transit – and keep costs in check. Look for boxes, envelopes or poly mailers best suited for product size and fragility. For delicate items, sturdy packaging may save you from costly damage. Lightweight products could benefit from slim mailers that can cut down on shipping fees.
• Decide how to manage shipping. If the order volume is manageable, pack and ship in-house. But if demand outpaces your capacity, look into third-party logistics providers or dropshipping partners who can help free your time and keep deliveries on track.
• Add flexible and convenient options. Many shoppers don’t want to wait for shipping — or pay for it. Options like buy-online-pick-up-in-store (BOPIS), curbside pickup and local delivery offers customers more flexibility.

This story was produced by NEXT and reviewed and distributed by Stacker.