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How Kaspien protected sales by diversifying their fulfillment with FBM

This may not be the first time Deliverr followers have heard from Kaspien, but you used to know them as etailz. In our previous case study, we looked at how etailz tripled their Walmart.com sales with fast delivery. Today, we’re going to cover how they protected their business, growth, and partners with Deliverr.

Kaspien optimizes and grows brands on today’s leading online marketplaces. Founded in 2008 in Spokane, WA, Kaspien has spent the last decade building and utilizing proprietary technologies for marketing optimization, brand protection, and fulfillment efficiency to generate rapid revenue growth for brands. Kaspien has earned the trust of many leading brands that they manage, including 3M, Strider Bikes, ZippyPaws and others, driving over $1 billion in lifetime marketplace sales.

Kaspien leverages Deliverr to fulfill orders via Amazon FBM. They were able to keep their sales strong even when Amazon FBA implemented inbound restrictions. Today, Kaspien uses Deliverr to fulfill their orders on Amazon, Walmart, Target Plus, and eBay. We spoke with Jason Flynn, a general manager at Kaspien, to get more insight into their experience.

Kaspien growth and updates

Kaspien has gone through plenty of changes since we last featured them in 2019. They are no longer just a third-party seller, but a tech-enabled ecosystem that optimizes and grows brands on leading marketplaces. They can do this as a retailer, agency, software provider, or even by acquiring brands.

They also received nearly $45 million in funding, which is being used to fuel their tech-enabled marketplace platform, develop their internal teams, and acquire and integrate brands into their ecosystem. Today, they have surpassed $1 billion in retail sales and expanded to new marketplaces like Target Plus.

Diversifying fulfillment

“Partnering with Deliverr has enabled Kaspien to diversify our fulfillment solutions, which proved invaluable in early 2020 when consumer demand spiked in response to stay-at-home orders. FBA famously buckled under the strain and imposed category restrictions for inbound shipments.” — Jason Flynn, General Manager NME

We talk about the importance of diversification a lot on the blog, and we’ll continue to do so — it’s one of the most important ways you can protect your business. Building redundancy into an eCommerce business means sourcing from multiple manufacturers in different cities or countries, omni-channel selling across everywhere customers can shop, and building backups into your logistics and fulfillment.

“By having complementary and supplementary fulfillment solutions in place via our Deliverr partnership, we were able to meet demand and continue fulfilling orders for our retail partners, capturing business that they would have otherwise missed.” — Jason Flynn, General Manager NME

Selling strong through FBA restrictions

“We began using Deliverr to backup our FBA and FBM solutions, which proved tremendously helpful for us and our partners in the turbulence of 2020.” — Jason Flynn, General Manager NME

2020 brought big challenges for eCommerce merchants, despite accelerating sales. eCommerce adoption grew, but the global supply chain was put under tremendous pressure in many ways, and Amazon implemented quantity restrictions.

“Deliverr was a phenomenal asset to us when Amazon implemented their AQL restrictions last year.  Our partners were thrilled that we were able to provide them with a fast and effective alternative to FBA that ensured we didn’t stock out.” — Jason Flynn, General Manager NME

Kaspien had to “quickly switch things to Deliverr to ensure we had options for fulfillment.” By acting fast and ensuring they had backup FBM listings through Deliverr for their FBA ones, Kaspien was able to keep their listings live and continue to serve their customers.

Kaspien’s advice: Manage your supply chain and inventory

And one final piece of advice from the Kaspien team; master your supply chain and inventory management.

“Supply chain and inventory management, including fulfillment, are critical pieces in the Amazon puzzle. Their success or failure directly impacts the performance of sales, marketing, and brand integrity, and vice versa. As such, it’s vital that brands leverage solutions that bridge communication and coordination between each element.

“Marketing needs to drive sales at a rate that inventory can be restocked. Stocking out creates lingering harm to marketing by deteriorating product rank and opening the space to competitors, which in turn means sales will slow.

“Kaspien solves this challenge through our tech-enabled marketplace platform, which combines billions of historic data points to enhance the individual and cumulative performance of every piece of eCommerce brand strategy.”  — Jason Flynn, General Manager NME

What’s next? Target Plus as a promising new channel

“In Q4 2020, the average revenue per listing on Target.com was 9x higher than what we saw on Walmart.com.” — Jason Flynn, General Manager NME

Target’s highly curated marketplace, Target Plus, joined the top 10 US companies by eCommerce market share in 2020. eMarketer forecasts it will claim the #6 spot by the end of 2021. According to Jason, in a Kaspien survey that asked “Where would you like to start selling products in the next 1-2 years,” 43% of respondents ranked Target.com as the online marketplace that they are most interested in expanding to within the next 1-2 years, followed by Walmart at 41%.

Kaspien began selling on Target Plus and found 9x higher revenue per listing, and 6x orders than eBay.

The Deliverr experience

“Deliverr is on the leading edge of eCommerce fulfillment and gives us the ability to diversify our fulfillment.” — Jason Flynn, General Manager NME

Kaspien continues to grow today, having launched two SaaS products (AdManager, an Amazon ad management tool with 6% average ACOS, and Channel Auditor, a seller reimbursement tool). They continue to use fast delivery in their marketing materials, with the marketing team lifting sales by 30% on average. We’re looking forward to watching Kaspien grow and help even more merchants with their unique and brilliant skillset.

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