From Always Out Of Stock to 31X Stock Limits
Overview
One of our clients specializing in natural and organic consumable products constantly faced challenges with their logistics and inventory, resulting in drops in BSR and fluctuating sales.
This led to inconsistent sales year round, and ultimately loss in revenue.
Challenges
1. Transitioning from 1P to 3P
2. Logistical Delays
3. No Contingencies in Place
Assessment
In 2020, this client faced significant challenges in transitioning to a 3P business model.
They constantly grappled with logistical delays and inventory shortages, which hindered their ability to increase inventory limits on Amazon.
Their 3PL provider was also delayed, taking approximately 3 to 4 weeks to process shipment requests. This slow fulfillment led to listings running out of stock, negatively impacting sales and customer reviews.
With the holiday season fast approaching, it was crucial to find the fastest possible solution. To top it off, the brand had to do everything to boost their storage limits before the holiday check-in cut-off. in order for them to still be able to capitalize on the biggest holiday sales, everything needed to be done to expedite their shipping to Amazon.
Approach
Minimising Dependence On a 3PL Provider
Our approach involved decreasing reliance on the 3PL provider, opting instead to split the inventory between two (2) reliable fulfillment options. We arranged for the distributor to start dispatching products both to Amazon and to Omirank’s own warehouse.
Establishing an FBM Safety Net
By setting up an automated fallback solution, this enabled orders to be fulfilled either through Fulfilled by Amazon (FBA) or Fulfilled by Merchant (FBM) from Omirank’s warehouse. With FBM listings covering 95% of the product range, sales could continue uninterrupted, even when 3PL stocks were running low.
Expanding 3PL Inventory Capacity
As a result of minimizing out-of-stock instances, there was an overall improvement in account health, leading to a significant increase in stock limits. This meant that the brand was well-prepared for the holiday season, stocked with a robust supply of Prime Eligible products.
Approach
Minimising Dependence On a 3PL Provider
Our approach involved decreasing reliance on the 3PL provider, opting instead to split the inventory between two (2) reliable fulfillment options. We arranged for the distributor to start dispatching products both to Amazon and to Omirank’s own warehouse.
Establishing an FBM Safety Net
By setting up an automated fallback solution, this enabled orders to be fulfilled either through Fulfilled by Amazon (FBA) or Fulfilled by Merchant (FBM) from Omirank’s warehouse. With FBM listings covering 95% of the product range, sales could continue uninterrupted, even when 3PL stocks were running low.
Expanding 3PL Inventory Capacity
As a result of minimizing out-of-stock instances, there was an overall improvement in account health, leading to a significant increase in stock limits. This meant that the brand was well-prepared for the holiday season, stocked with a robust supply of Prime Eligible products.
Results
31x Stock Limits
The Amazon 3PL stock capacity for the brand skyrocketed from 1,700 units to over 53,000 marking a roughly 31-fold increase
98.2% FBA Availability
Achieved a 98.2% in-stock rate on FBA, thanks to the expanded 3PL inventory limits and additional stock at the Omirank warehouse.
Buy Box Secured
Enhanced account health enabled the our client to secure 94.2% Buy Box ownership, capturing a larger share of branded demand.