eCommerce continues to grow and it doesn’t look like it’s slowing down anytime soon. Market research firm eMarketer projected global eCommerce sales will eclipse $3.5 trillion within the next five years, with the Web accounting for 7.3 percent of global retail sales in 2015, growing to 12.4 percent by 2019.
It’s becoming increasingly important for brands to fully establish their eCommerce operations. However, it’s also necessary to learn from the mistakes of companies like Circuit City and Borders that ultimately failed due to their inability to scale responsibly to meet customers’ digital needs. Growing companies need to scale strategically, especially when it comes to eCommerce. In this blog, we take a look at two companies that have done it right by turning to a partner to take over certain aspects of the eCommerce process, freeing them up to grow the brand while still keeping customers happy.DSTLD
Luxe online retailer DSTLD (pronounced “Distilled”) kept all its inventory in its own warehouse, handling fulfillment, shipping and returns process itself. As the company grew, however, it began to face challenges with fulfillment issues. The actual inventory didn’t always match what customers saw online, creating confusion for workers trying to fulfill orders in the warehouse and — ultimately — unhappy customers.
Understanding the greater expectations for service and convenience expected by its customers, DSTLD partnered with Newgistics as a third-party logistics (3PL) partner to handle everything from warehousing and fulfillment, to shipping and returns. As a result, the company no longer faces any of the previous inventory challenges despite steady growth and an increase in order volume by nearly 200 percent, allowing DSTLD to focus on growing the company and continuing to serve customers. Learn more about DSTLD’s story here.Gilt
Since launching in 2007, chic flash sale website Gilt has briskly built its members-only customer base—which now numbers in the high single-digit millions. That rapid growth made Gilt’s previous returns solution, provided by another shipping company, increasingly problematic. Little advance visibility into returns headed back to its distribution centers prevented Gilt from maximizing labor productivity, and the inefficiency slowed down customer refunds. In 2011, Gilt switched to Newgistics for returns management. Newgistics’ pre-addressed and prepaid SmartLabels® can be easily affixed to return packages by the customers. And, as soon as the SmartLabel® is scanned by the U.S. Postal Service, Gilt receives richly detailed data that offers advanced visibility for better inventory planning. Learn more about Gilt’s story here.
Many businesses that scale right do so with the help of a trusted partner. To learn more about Newgistics’ offerings, please visit: http://newgistics.com/.