How a Gourmet brand overcame out of stock challenges and improved shipment times

Case Study: A Premium Brand Partners with Global-1-Seller

A premium brand that partnered with Global-1-Seller offers gourmet food products made with high-quality, natural ingredients sourced from sustainable farms. In June 2022, they switched from 1P to 3P, direct-to-consumer sales. This led to logistical delays and inventory shortages, and as a result, they could not increase inventory limits on Amazon. Sales and reviews were suffering because of the slow fulfillment and out-of-stock listings. Global-1-Seller worked with them to fix these problems before the crucial holiday season.

About The Client

A premium brand offers a range of gourmet food products made with high-quality, natural ingredients sourced from sustainable farms. The company includes two distinct brands: one specializing in organic snacks and another focused on artisanal sauces and spreads. Their mission is to provide delicious, healthy, and environmentally friendly food options that cater to a discerning consumer base.

Background

This gourmet food brand had been operating as a first-party (1P) seller on major online platforms successfully for several years. In June 2022, they decided to transition to a third-party (3P) direct-to-consumer (DTC) sales model to gain more control over pricing, inventory, and customer interactions.

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Challenges

The transition to a 3P business model presented significant challenges for the brand in mid-2022. They faced logistical delays and frequent inventory shortages. As a result, they struggled to increase their inventory limits on major online marketplaces like Amazon. Their third-party logistics (3PL) provider was taking an average of 3 to 4 weeks to fulfill shipment requests, leading to slow fulfillment rates and numerous out-of-stock listings. Sales and customer reviews suffered due to these issues, and with the holiday season approaching, they needed urgent solutions to avoid missing out on crucial sales opportunities.

Solution

Global-1-Seller developed a comprehensive strategy to address the brand’s logistical and inventory challenges before the critical holiday season.

  1. Diversifying Fulfillment Options
    • Global-1-Seller reduced the brand’s reliance on a single 3PL provider by splitting inventory between multiple reliable fulfillment centers. This ensured faster processing times and reduced the risk of delays.
  2. Implementing an FBM Backup Plan
    • An automated backup plan was established, allowing orders to be fulfilled either by Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM) through Global-1-Seller’s warehouse. This strategy covered 90% of the product catalog, ensuring continuous sales even when the primary 3PL inventory was low.
  3. Enhancing Inventory Management
    • By improving overall account health and reducing out-of-stock periods, Global-1-Seller helped the brand increase its stock limits significantly. This meant entering the holiday season with a robust supply of Prime-eligible products.
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Impact

By mid-September, the gourmet food brand experienced substantial improvements. Amazon Prime delivery times were now displayed on their listings, thanks to FBA fulfillment. The occurrence of “out of stock” notifications significantly decreased, as Global-1-Seller’s warehouse was prepared to fulfill orders via FBM until the next distributor shipment arrived.

As a result, the brand’s FBA storage limits increased dramatically from 1,500 to over 50,000 units, achieving an impressive FBA in-stock rate of 98%. This improvement not only boosted sales and customer satisfaction but also positioned the brand for a highly successful holiday season.

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