You're invited to Discoverr: A virtual 2-day conference of multi-channel eCommerce lessons Register

Blog > Fast Shipping > The importance of a consolidated fulfillment network in multi-channel selling

The importance of a consolidated fulfillment network in multi-channel selling

With revenue potential and risk protection of multi-channel selling too great to ignore, multi-channel selling is never going to go out of style.

What if there was a way to make your selling operation lean and scalable ?

A single move can help you do just that: consolidate inventory into one or two fulfillment networks.

Many sellers are consolidating their non-Amazon inventory into Deliverr, and they saw their business’ bottom-line benefit from the following:

  1. Consistent fast shipping speeds, boosting revenue
  2. Easy replenishment and inventory maintenance
  3. Less interfacing time and manpower with an all-in-one fulfillment system

Today we’ll discuss how switching inventory into Deliverr can help keep your business processes simple, streamlined, and profitable.We’ll let the numbers do most of the talking by modeling a theoretic case study below.

Note: Lifts and estimates are determined by historical averages of our seller base and are conservative, educated guesses.

Before: HomeSpa

This mock case study will illustrate how inventory consolidation is an almost-guaranteed money maker and time saver.

Bob L. Bath of HomeSpa sells an array of DIY bath and spa products, from organic face masks to pedicure kits.

Merchant details

Seller: Bob L. Bath

Company: HomeSpa

Sales channels:

Marketplace / Shopping CartMonthly OrdersRevenue
Amazon (Fulfillment by Amazon)5000$150,000
Walmart (Deliverr)1000$30,000
Shopify (Shopify Fulfillment Network)400$12,000
Wish (Fulfillment by Wish)100$3,000
Total6500$195,000

That is 4 different fulfillment networks across as many channels, which may or may not include fast shipping tags in some cases.

The growth potential

HomeSpa could consolidate all of its inventory into Deliverr while keeping Amazon FBA for their Amazon orders. This is a simple move, but a significant one.

On average, sellers see a 200% sales lift with Walmart and Wish, and a 150% sales lift with Shopify. (We’ve applied this lift to  HomeSpa’s metrics above in the chart in the next section.)

Why is this the case?

Let’s see what happens:

1) HomeSpa gains fast, consistent shipping speeds across all sales channels

It’s easier to manage inventory placement, and therefore service levels with a unified fulfillment network across the country.

Also, customers love consistent shipping speeds and service across every sales channel. Using Deliverr, HomeSpa has streamlined control of listings and inventory across Walmart, Amazon, Wish, Shopify and eBay.

Because of this, HomeSpa will enjoy higher buyer return and lower cart abandonment rates.

2) Easy replenishments and risk protection are now in place

HomeSpa also is able to keep track of much needed inventory replenishments to keep up the fast tag and avoid stockouts.

In times of crisis, the Deliverr network can onboard new warehouses quickly. That means that HomeSpa’s inventory will never be at risk of being turned away when demand increases for Deliverr’s asset-light fulfillment network.

We saw a keystone account of this during Amazon’s decision in March to turn away non-essential inbound shipments to their warehouses when they were at capacity.

As a conservative estimate, we have estimated that HomeSpa’s Walmart fast tag, which appears only when inventory is stocked in warehouses across the country, is visible 85% of the time. This number is often much higher.

3) HomeSpa saves on significant interfacing time with one platform instead of many

Most importantly, HomeSpa saves on interfacing time and manpower with an all-in-one platform. Otherwise, HomeSpa spends time onboarding onto fulfillment platforms, packaging according to that network’s requirements, and keeping track of inventory by sales channel.

After: HomeSpa

After this lean business decision, HomeSpa saw a $9,000 lift in revenue after the company consolidated its Walmart, Shopify and Wish inventory into the Deliverr network. Add that to savings from the competitive fulfillment rates of Deliverr and time savings from no longer having to manage and prep for 4 different fulfillment services.

Here are a few ways HomeSpa transformed its business by consolidating inventory into Deliverr:

  1. Offered top-notch fast shipping speeds to its customers, increasing satisfaction, repeat purchases and ultimately, revenue
  2. Made it easier for the company to replenish and manage inventory to maintain the fast tag
  3. Reduced interfacing time with an all-in-one platform, instead of multiple fulfillment networks

Merchant details

Seller: Bob L. Bath

Company: HomeSpa

Sales Channels:

Marketplace / Shopping CartMonthly OrdersRevenue
Amazon (Fulfillment by Amazon)5000$150,000
Walmart (Deliverr)1000$30,000
Shopify (Deliverr)600$18,000
Wish (Deliverr)200$6,000
Total6800$204,000

Note that in this example, we left Amazon under FBA. However, if you keep inventory with Deliverr, you can use Deliverr with FBM to create a secondary fulfillment option that helps keep your business resilient. For example, if Amazon is your fastest-moving channel, you can set it up so that if you ever run out of stock in FBA your fulfillment switches over to FBM Deliverr, and your listings stay active.

To recap, by consolidating inventory into Deliverr, HomeSpa was able to pare down 4 separate fulfillment networks that they had to set up and monitor, all with different processes for sending in inventory and getting items fulfilled. They no longer have to juggle inventory across different warehouses and enjoy inventory efficiency as all of their inventory is in just 2 key fulfillment providers. They are able to offer fast shipping and display fast shipping badges on their listings across all their channels, and as a result enjoy lower cart abandonment rates and higher conversions.

Subscribe to stay updated with new articles!
Share
Tweet
Share
Pin