The holiday shopping season has always been a major event for retailers, especially smaller businesses and those who sell apparel, toys and games, electronics and specialty goods. In fact, a recent study that evaluated the impact of holiday sales on small and medium-sized businesses found that many rely on this season for at least 50% of their annual revenue. The stakes are high, and so are the challenges that come with navigating a volatile market.
This year alone, SMBs have faced shifting tariff policy, trade wars, shipping delays and fluctuating consumer demand. Many have had to switch suppliers, intentionally overstock or pivot to keep their business operating. A recent survey from the National Federation of Independent Businesses found that the majority of small business owners feel that supply chain disruptions are wreaking the most havoc on operations. It’s been stressful and costly. Not to mention highly competitive.
With the holiday season upon us, small business owners may feel like they’re trying to put a bow on a whole lot of uncertainty. But there’s good news: you’re not alone, and there are several strategies that you can put into practice to help plan for a successful season.
Smart Tech, Smarter Moves
Recent data from Katana Cloud Inventory showed that late deliveries have jumped more than 30% since the start of the year, indicating that managing inventory accurately and efficiently is an ongoing challenge. Stockouts are increasingly more common, which means missed sales, frustrated customers and tighter margins. When SMBs use spreadsheets or overkill enterprise resource planning (ERP) systems to manage inventory, the risk of items falling through the cracks increases exponentially. Switching to a system that gives you exactly what you need can enhance operational efficiency, improve cash flow, and reduce stockouts or overstock.
Inventory management software that’s tailor-made for SMBs can integrate into existing workflows, regardless of industry, with the right features and integrations. Do you have Shopify e-commerce stores? Integrate it. Sell on TikTok shop? You can connect to that, too. What about a customer relationship management system or accounting platforms? Consolidate it. A connected ecosystem offers holistic oversight into all aspects of the business, and the agility needed to navigate the changing marketplace.
Supplier Relationships Built to Last
A connected inventory management system can also pull historical data to help plan inventory for the upcoming sales season. But in today’s market, there are several other considerations that are equally as important. While tariffs have increased the costs of inventory for many businesses, they’re also causing confusion for suppliers. In fact, several European countries recently had to halt shipments to the U.S. due to unclear tariff policies.
According to Deloitte’s 2025 Retail Holiday Buyer Survey, most businesses are concerned that their current suppliers may not be able to fulfill holiday orders amid geopolitical tensions. Real-time supplier management is critical. When businesses have connected operations, owners can optimize this process, too. Storing supplier data is easy and allows you to quickly adapt to changes in your supplier chain. For example, you might want to diversify suppliers for this holiday season in case of disruption down the line. With a database of trusted suppliers that are both local and international, you won’t be caught without inventory when your customers want to buy. It’s all about finding the right mix for your products and your business.
The Holiday Season Is Just the Start
The challenges facing businesses today are real and the competition fierce, but, armed with technology, SMBs have speed and flexibility on their side. The holiday doesn’t have to be chaos. With smart planning, the right suppliers and connected operations, businesses can cut through the noise and come out ahead. The winners won’t be the biggest or the ones with the most cash flow — they’ll be those businesses that adapt fast and work smarter than the rest.
While a successful holiday sales season is important, implementing smart, proactive strategies today can help SMBs scale and succeed far beyond the end of year rush. Use the tools to help build cash reserves, add new revenue streams and start loyalty programs to keep customers coming back year after year. Optimize your business from storefront to accounting. The right technology can be the backbone of your business, offering insights that drive real progress and growth.
Ben Hussey is co-chief executive officer of Katana Cloud Inventory.