How a natural skin care brand overcame out of stock challenges and improved shipment times
How a natural skin care brand overcame out of stock challenges and improved shipment times.
A premium brand partner with Amify offers natural skin care products made with hive-based ingredients including honey, propolis and melexylem. In Sept. 2021, 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. Amify worked with them to fix these problems before the crucial holiday season.
About The Client
A premium brand partner offers natural and organic skincare and personal care products that moisturize, soothe and nourish from head-to-toe. The company today consists of two brands, a pure, natural skincare brand that binds certified organic ingredients with raw honey and propolis to deeply moisturize and rejuvenate skin, and a 100% natural feminine care brand that harnesses organic, active ingredients to help replenish moisture, balance pH and rejuvenate intimate skin.
Background
This natural skincare brand had been operating as a 1P business successfully for some time. In September of 2021, they decided it was time to transition to a 3P business model.
Challenges
It was extremely difficult for this brand to get their 3P business off of the ground in 2021. They encountered logistic delays and inventory shortages, as a result, they could not get inventory limits to increase on Amazon. Their 3PL was taking ~3 to 4 weeks to get shipment requests out the door. They knew sales and reviews were suffering because of the slow fulfillment and their product listing showing “out of stock” more often than not. With the holidays approaching, they couldn’t waste time finding solutions. They needed to ship products to Amazon quickly to meet holiday cut-off dates and not miss out on critical sales revenue. In order for storage limits to increase before the holiday check-in cut-off date.
Solution
The Amify team created a strategy focused on finding efficiencies and troubleshooting inventory issues in a lean way.
1. Reducing Reliance on 3PL Provider
The plan was to reduce reliance on the 3PL supplier and divide inventory between two fulfillment options they could count on. We shifted the distributor to begin shipping products both to Amazon and to the Amify Warehouse.
2. Creating an FBM Backup
This created an automated backup plan, so orders can be fulfilled from one source (FBA) or the other (FBM from Amify’s Warehouse). The Fulfilled by Merchant listings covered 95% of the catalog which meant that they could continue selling, even when their 3PL stock had dwindled.
3. Increasing 3PL Stock Limits
By reducing out-of-stock periods, overall account health improved meaning stock limits increased greatly, which meant the brand would approach the holidays with a healthy supply of Prime Eligible products.
Case Study Statistics
29X
Stock Limits
Increased Amazon 3PL inventory limits from 2,000 to more than 58,000 units.
97.5%
FBA In-Stock Rate
Thanks to increased 3PL inventory limits and backup inventory in Amify Warehouse.
93%
Buy Box Captured
By improving account health, the natural skin care brand was able to capture more branded demand.
Impact
By the end of September, things were looking up for the natural skin care brand. Amazon Prime delivery times were now marked on the listings because they were now fulfilled by Amazon. “Out of stock” became a thing of the past with Amify’s Warehouse ready to fulfill by merchant (FBM) until the next distributor shipment was ready.
This immediately resulted in increased FBA storage limits from 2,000 to 58,000+ resulting in an FBA in-stock rate of 97.5%!
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