Unlocking the secrets of successful Direct-to-Consumer businesses
- 3 brand examples to boost your online sales
- 2 actionable tips for quicker results
- 1 special surprise
Logistics
Shopify Fulfilment Services Everything You Need to Know 2024
As customers increasingly expect fast deliveries, a slow order fulfilment process can result in abandoned carts and lost sales. For Shopify store owners aiming to challenge it, optimising your fulfilment is crucial. Despite being often overlooked, efficient fulfilment can be the key to business growth.
Planning logistics and fulfilment operations may seem daunting, from stock management to last-mile delivery, the process is complex. Thankfully, numerous fulfilment service providers help Shopify shop owners scale effectively.
In this guide, we'll explore the basics of Shopify fulfilment services and the essentials of partnering with a third-party fulfilment provider.
1. Fulfilment is pivotal for your Shopify store's success
Here's how:
When fulfilment is smooth sailing, customers receive their orders quickly and as expected. They're thrilled and spread the word, boosting your reputation and drawing in more business.
But, if fulfilment falls short, delays, and mistakes can leave customers frustrated and disappointed. This damages your reputation and drives customers away.
63% of consumers are unlikely to return after a negative fulfilment experience!
2. What is Shopify Fulfilment Network?
The Shopify Fulfilment Network (SFN) serves as Shopify's dedicated fulfilment service, enabling brands to efficiently manage inventory storage and fulfil customer orders. Introduced in 2019, SFN was designed to provide fulfilment capabilities tailored to e-commerce brands leveraging the Shopify platform.
Shopify Fulfilment Network has its limitations:
- Limited coverage: SFN is currently available only in the United States.
- Inventory restrictions: SFN has limitations on the types of products it can store and fulfil, such as perishable goods like food supplements or items with specific storage requirements like delicate garments.
- Integration challenges: SFN may pose challenges for merchants using third-party systems or custom solutions.
- Loss of control: Merchants can lose some control over branding, packaging, and customer communication when using SFN.
3. How to partner with a 3PL for your Shopify stores
3.1 Send your stocks to your 3PL
The collaboration with an outsourced fulfilment service provider starts with merchants sending their products to their fulfilment centres.
3PLs with a well-connected network of fulfilment centres worldwide, advanced technology to automate inventory processes, and data analytics for smarter supply chain decisions.
3.2 Save on shipping costs with your 3PL
3PLs team up with carriers to give you lots of affordable shipping choices. They pick the best carriers for your shipments, like Bigblue partnering with over 20 major European carriers such as Royal Mail, Mondial Relay, and Colissimo.
This helps make online shopping better with quicker and cheaper deliveries!
Moreover, you can rely on your 3PL to share their expertise in suggesting packaging solutions and eco-friendly practices. Trust them to provide valuable guidance for optimal packaging choices, contributing to environmentally conscious shipping practices.
3.3 Enjoy the expertise of your 3PL
By prioritising customer satisfaction, you not only secure great reviews but also ensure a promising future for your shop. This comprehensive approach covers inventory management, order management, and efficient packing and shipping.
It will make your collaboration with a Shopify fulfilment service a strategic advantage in the competitive e-commerce landscape. Offer the best customer experience and increase your sales!
4. How to set up Bigblue with your Shopify store
Fast-growing Shopify merchants have partnered with Bigblue to help meet customer expectations, reduce cart abandonment and boost their conversion rate.
Bigblue simplifies e-commerce fulfilment by handling warehousing and shipping.
A tech-enabled 3PL provides inventory levels tracking tools to check stock levels in real-time, set reorder points, avoid stockouts, and analyse sales performance.
With Bigblue, e-commerce businesses can save time on daily logistics operations management. Its network of distribution centres and advanced Warehouse Management System (WMS) ensure efficient storage and streamlined processes.
Additionally, Bigblue allows you to use custom packaging options to enhance the unboxing experience and negotiates carrier discounts to pass savings on to customers.
To get started, here are simple steps on how to connect Shopify to Bigblue.
Step 1:
Login to your Bigblue account and open the Shop Integrations to connect your Shopify shop by clicking on "Connect a Shop." Choose Shopify, click Next, and then add the app from the Shopify App Store. In the welcome pop-up, indicate that you already have a Bigblue account.
Step 2:
Configure the auto-fulfilment option on Shopify. Navigate to your Shopify admin page and access Settings > Checkout and Accounts. Locate the Order processing section and choose "Do not automatically fulfil any of the order's line items."
It's important to note that Bigblue processes Shopify orders only after payment has been received, thanks to the implemented filter by payment status. This ensures a seamless integration between your shop and Bigblue for efficient order fulfilment.
Step 3:
To start linking your Shopify products to Bigblue, you can use the auto-link feature in the Bigblue app. Ensure your Bigblue products have matching barcodes or SKUs with Shopify. Access the Shop Integrations tab, configure preferences, and click "Start" to auto-link.
And that’s all, you are all set up!
As global e-commerce sales are set to reach $6.3 trillion in 2024, the importance of efficient fulfilment for Shopify store owners cannot be overstated.
By partnering with a 3PL, businesses can benefit from cost-effective shipping, expert advice, and improved customer satisfaction.
Shopify fulfilment services providers excel in picking, packing, and shipping orders, setting the stage for success for your Shopify store.
E-commerce trends
The Top 10 Direct-To-Consumer (DTC) Brands to Follow 2024
Direct-To-Consumer (DTC) brands are everywhere. In the UK, DTC commerce soared from 5% to 27% in 2023.
They are reshaping consumer shopping behaviours in e-commerce. According to Salesforce, 64% of global shoppers now prefer to buy directly from the brand website.
Some of our favourite brands are creatively adopting e-commerce through influencer collaborations, scarcity strategies, and a commitment to sustainability.
Discover the top 10 DTC brands in 2024, like Unbottled, Zapato Feroz, Papier, and Scuffers. Explore their unique strategies and features defining DTC's success.
1. What Is a Direct-to-Consumer (DTC) Brand?
A Direct-to-Consumer (DTC) brand directly sells its products to customers online, skipping intermediaries such as wholesalers and retailers. This approach allows them to manage the customer experience, collect data directly from shoppers, and increase profits.
Successful DTC brands often expand their distribution to become omnichannel brands. Casper, for instance, partnered with major sleep chains to stock their mattresses. Similarly, brands like Cabaïa, Unbottled, and Glossier expanded by venturing into physical retail and establishing brick-and-mortar stores.
2. 10 winning strategies from top DTC brands to adopt right now
2.1 Cabaïa - Environmental engagement & personalisation
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Cabaïa is a French accessories brand established in 2015 in Paris by Bastien Valensi and Emilien Foiret. The brand specialises in the sale of hats, socks, and luggage items such as backpacks.
Winning strategy: The brand incorporates environmental and animal-friendly principles, with plans to create 100% eco-friendly bags in the future. Cabaïa actively engages customers through surveys, and social media communities, and aims to foster loyalty by involving customers in the company's life.
The plus: Cabaïa offers personalisation options with different pocket (front, side, bottle) designs and showcases a strong commitment to animal welfare. In collaboration with SPA, they donated €1 for every purchase made online or in-store from Feb 7-14, totalling over €17,000 for the cause.
2.2 Helssy hair - Natural hair care through UGC and education
Helssy Hair, founded by Héloïse Dreux, emerged from her journey to embrace natural hair care after years of using damaging hair straighteners. She shared hair care tips on social media, sparking interest and leading to the creation of the Helssy Hair e-commerce store in 2021. The brand focuses on providing quality, natural hair care products for various hair types.
Winning strategy: The brand employs a marketing strategy that revolves around UGC and educational content by Héloïse shared on various social media platforms, particularly through short-form video content.
The plus: A cool free e-book full of tips to take care of your hair!
2.3 Papier - Creative community focus
Papier is a British online e-commerce brand established in 2015, specialising in personalised stationery. They sell customisable wedding invitations, notebooks, and notecards, operating in the UK, US, and Australia. The company has received recognition at the British Wedding Awards and UK Wedding Awards. Papier raised $4 million in series A funding in 2017 and $11 million in series B funding in 2019.
Winning strategy: Papier fills a market gap by offering quality, tasteful, and affordable personalised stationery, and utilising creative partnerships with design influencers and brands such as the V&A, Matthew Williamson, and Disney. The brand also engages customers through personalised email communication, discounts, and perks. It created a community around paper lovers, journaling and daily planning. They organise events and workshops to foster a stronger connection with their audience.
The plus: The Fold, their online magazine that gives tips and artists spotlight!
2.4 Scuffers - Streetwear with limited-edition exclusivity and influencer collaborations
Established in 2018 by Madrid entrepreneurs Jaime Cruz and Javier López, Scuffers is a leading streetwear brand that generated 2.5 million euros in revenue in 2022. Focused on hoodies, T-shirts, and knitwear, the brand has garnered considerable popularity, particularly for its exclusive limited-edition releases. Embodying a blend of Madrid street culture and global streetwear trends, Scuffers has made a mark in the fashion scene.
Winning strategy: Scuffers forges authentic influencer connections by sending apparel to friends and supporters pre-launch. This approach generates viral TikTok content (#scuffers 30.8M views, #scuffershaul 20.9M views) and builds a strong 311k Instagram following. Recognised by influencers, artists, and celebrities, Scuffers' limited-edition exclusivity adds to its appeal.
The plus: The pop-ups, featuring DJ sets, after-parties, and exclusive limited editions, offer a highly anticipated and cool shopping experience.
2.5 Unbottled - Transparent & humorous marketing
The French brand Unbottled addresses plastic waste in cosmetics. Their solid products, like shower gels and shampoos, come in FSC-certified cardboard, eliminating single-use plastic. Formulations are free from harmful chemicals, 90% natural, and biodegradable. Vegan, pH-neutral, and made in France, these products suit all skin and hair types.
Winning strategy: The brand's dedication extends to its marketing strategy, focusing on transparency and sustainability in its communication. It's not fear-based marketing but rather centred around education and humour.
The plus: A B corp-certified company! Their product bundles and their email marketing strategy (including their order tracking email) are top-notch!
2.6 Zapato Feroz - Demand-driven scarcity strategy
Established by Laura Garcia and Héctor Nebot, Zapato Feroz offers natural, comfortable shoes for children's early steps, with a focus on natural foot development. Expanding their range to include kids and adults, they provide footwear that respects the whole family's feet. Crafted with materials like natural leather and microfiber, Zapato Feroz prioritises comfort and durability.
Winning strategy: Last year, over 70,000 parents endured virtual queues of up to eight or nine hours to purchase Zapato Feroz shoes. With a scarcity strategy and limited production, Zapato Feroz generates high demand and long wait times for its exclusive, limited-edition designs.
The plus: Their YouTube channel where Laura Garcia answers questions and shows in detail all the upcoming designs and their sales reminders that you can add to your calendar directly on the website homepage!
2.7 Saye - Sustainable style fusion
Saye, founded in Barcelona, is a sustainable footwear brand selling vegan and eco-friendly materials shoes 100% produced in Portugal. The brand emerged through a successful Kickstarter campaign, launching 7,000 pairs of sneakers and becoming Spain's most funded fashion project on the platform.
Winning strategy: Saye seamlessly blends a vintage/retro style with sustainability in their entire collection, staying true to their identity. Additionally, they use Facebook Ads, and organic campaigns, and collaborate with global micro-influencers who align with their style, ethics, and eco-conscious values.
The plus: For every pair sold, Saye funds the growth of two trees, contributing to reforestation efforts in collaboration with the NGO We Forest.
2.8 Serious tissues - Eco-friendly marketing
Serious Tissues, a UK-based toilet paper brand, prioritises sustainability and local production. Their tissue is exclusively crafted from 100% recycled paper, sourced from diverse materials that would otherwise contribute to landfill waste. The brand has expanded its range to include laundry detergent and facial tissues. Additionally, the tissue rolls are not individually wrapped, and their product is free from plastic, dyes, perfumes, and unnecessary chemicals.
Winning Strategy: Serious Tissues aligns its brand identity with sustainability in every marketing action. In their inaugural TV campaign, the minimal environmental impact, created by a small team, reduced the production footprint by 5-10 times compared to the average London shoot. This effort earned them Sky Media's £1 million Grand Prix Sky Zero Footprint Fund.
The Plus: With every roll sold, the brand plants a tree, actively contributing to reforestation. Additionally, they offer a loyalty program where points earned can be transformed into discounts, enhancing customer engagement.
2.9 Clothes Doctor - Sustainable customer’s education
Clothes Doctor is an eco-friendly clothing care brand that encourages responsible garment care to combat clothing waste. They offer eco-friendly detergents, tools, and a clothes repair service. Guided by principles of natural ingredients, reducing waste, and being made in Britain, Clothes Doctor is dedicated to extending the lifespan of cherished clothes.
Winning strategy: Clothes Doctor focuses a lot on customer education on their social media and blog. Their content strategy is focused on tutorials and UGC with unboxing videos. The lesson? Show how your product can be a game changer.
The plus: Sustainable packing made of 100% aluminium with a compostable label!
2.10 Kite Beauty - The power of UGC and PR
Kite Beauty sells easy-to-use concealer pods directly to people with “busy lifestyles and tiny purses” that are on the move. They offer a range of skin tones and have a handy online quiz to help customers pick the right shade.
Winning strategy: Kite Beauty keeps things simple by focusing on one product and saving money on advertising. Instead, they focus a lot on UGC and PR! It's not clear if they'll sell other beauty items, but they're following the success of other online brands. The lesson? Make sure your main product is great before thinking about expanding.
The plus: Free shipping on every order & Subscription available!
As we wrap up our exploration of top DTC brands in 2024, a diverse mix of strategies emerges. The rise of DTC commerce highlights a shift towards direct connections and personalised experiences.
From Scuffers to Cabaïa, each brand showcases unique approaches, from simplicity to sustainability and exclusivity.
Now, it's over to you: which brands stood out, and whose strategies are you keen to adopt? With DTC brands reshaping the retail landscape, the possibilities are exciting. Which brands will influence your path, and what strategies will define your brand's journey?
The DTC wave is dynamic, and the opportunities are boundless for those ready to ride it.
Marketing
How Patagonia Leads the Way in Global Sustainability
In Kantar’s 2022 study, 94% of consumers aim for a sustainable lifestyle, with 49% associating sustainable products with their identity, and 57% stating that a brand's environmental efforts impact their purchasing decisions.
In a world where greenwashing and flashy marketing dominate, Patagonia marketing’s strategy stands out. The brand's journey towards sustainability and its bold stance represent its environmental and social commitment.
Discover Patagonia's success and how it became the number one brand in terms of reputation among the top 100 visible brands in America.
1. Patagonia’s history: Innovating the outdoor apparel market
In 1973, Yvon Chouinard, a rock climber, started Patagonia because he wasn't satisfied with available outdoor gear.
Based in Ventura, California, Patagonia makes outdoor clothes and cares about quality and the environment.
In 1965, aeronautical engineer Tom Frost joined forces with Chouinard, leading to the establishment of Chouinard Equipment in the industrial era. By 1970, they had become the first supplier of mountaineering gear in the USA.
Following a trip to Patagonia, the company changed its name to Patagonia in 1973.
“No longer can we assume the earth’s resources are limitless”
With 5.3 million Instagram followers, Patagonia is known for its commitment to reducing environmental impact. Standing out from competitors, the brand offers high-quality products with a minimal environmental footprint.
Since 2011, Patagonia has been a certified B-Corporation, recognised for its sustainability practices.
Patagonia donates 1% of sales annually, contributing over $100 million in grants and in-kind donations since 1985.
In 2023, the company is valued at around $3 billion and generates an annual revenue of $100 million.
2. Patagonia’s campaigns: Sustainability, community, and beyond
2.1 Patagonia's sustainability impact: Advocacy against fast fashion and fostering loyalty
When we look at why Patagonia is successful, we see it's not just about regular marketing. Patagonia made sustainability a part of who they are. Every product and campaign tells a story in their commitment to the environment.
Patagonia's marketing doesn't just sell products. It tells a story of purpose, eco-friendly choices, and community. Their transparent approach showcases each item's journey, celebrating artisans and the environment.
Let’s have a look at a few of their key campaigns!
2.1.1 The “Footprint Chronicles”
This initiative allows consumers to trace the origins and impact of their clothes. Imagine buying a fleece jacket and being able to follow its journey, step by step, analysing its environmental footprint.
It's a clear way for consumers to be more aware of the environment.
2.1.2 "Don’t Buy This Jacket" campaign
Patagonia's impactful campaign challenged consumerism by urging mindful consumption, especially during Black Friday and Cyber Monday. Rather than promoting more purchases, it emphasised the durability of its products, encouraging customers to buy less and use items longer for environmental sustainability.
2.1.3 "Worn Wear" campaign
In a world dominated by fast fashion, Patagonia stands out by introducing its 'Worn Wear' initiative.
Encouraging customers to send in their well-worn items for repairs, Patagonia confronts the disposable culture in the fashion industry.
Worn Wear allows you to trade in and buy used Patagonia gear.
This represents a bold stance against the throwaway mindset. Patagonia highlights repaired items through events and social media, advocating for waste reduction and responsible consumption.
2.1.4 "Vote Our Planet" campaign
Before the 2018 U.S. midterm elections, Patagonia's "Vote the Environment" campaign closed stores on Election Day, underlining the brand's commitment to environmental activism.
2.1.5 "Buy Less, Demand More" campaign
Responding to the global climate crisis, this campaign urged consumers to buy fewer products and demand higher sustainability standards. It emphasised the need for a shift towards a circular economy and called on consumers to support brands prioritising sustainability and transparency.
2.2 Patagonia's political and ethical activism
2.2.1 Bold political stances against the Trump administration
In 2017, Patagonia showcased its commitment to environmental activism by taking bold political stances. When President Trump signed an executive order to reduce national monuments, including Bears Ears, Patagonia joined forces with Native American and grassroots groups to challenge the order in court.
The company extended its political stance to product tags, with a limited-edition pair of shorts bearing the message "Vote the Assholes Out."
2.2.2 Corporate branding ban campaign
In 2021, Patagonia went a step further in aligning its business practices with its values. The brand banned all corporate branding options. This decision aimed to uphold Patagonia's commitment to sustainability and environmental protection. The move resonated with the brand's identity, reinforcing the notion that actions speak louder than words in promoting a sustainable future.
3. Patagonia’s marketing strategy: UGC, ambassadors and documentary
3.1 Strong focus on UGC and dedicated community of ambassadors
Despite selling clothing, the brand avoids direct product promotion on social media. Instead, it utilises multiple Instagram accounts – 11 certified and several unofficial but recognised – each catering to specific interests.
This segmentation diversifies content while adhering to the principle of avoiding aggressive promotions.
User-generated content (UGC) plays a central role, with athletes and enthusiasts sharing photographs across Patagonia accounts, fostering a dedicated community.
Since its beginnings, Patagonia has focused on its community. The outdoor brand mainly relies on its community and communication. Patagonia nurtures its community by sharing a lot of information about its achievements, evolution, and programs through its website or online. It has managed to stay true to its core values from the beginning.
Patagonia doesn’t pay influencers to promote their products. Instead, they collaborate with people, usually athletes or people who often partake in adventure sports, who share the same climate-conscious values as them. These people are Patagonia’s brand ambassadors.
These ambassadors are sorted into different groups based on what sport they play since Patagonia’s gear is also sorted separately according to sport, for instance, @patagoniaclimb and @patagonia_trailrunning.
The brand, then, reshares the videos of their ambassadors being in their element while wearing Patagonia’s clothes.
This type of indirect marketing works wonders because it is purpose-driven and is based on mutual values. Moreover, they get to fill their feed with unique content and value their collaborators in the process.
Since each of the ambassadors are veterans in their respective fieldfields, and customers can trust their recommendations.
3.2 Communication and building community around environmental and social causes
Patagonia encourages its customers to share their own stories and experiences related to the brand. They invite customers to send photos, videos, and testimonials about using their products in natural environments or memorable situations.
On its Instagram account, the brand almost exclusively shares inspiring stories from its customers around the world. This reinforces the feeling of belonging to a community that is committed and loyal to the brand.
3.3 Storytelling through documentary and short films
Patagonia engages in documentary production and community co-creation, positioning itself as an ecological media platform.
Patagonia's marketing strategy now centres on engaging with the outdoor sports community through storytelling, collaborations, and long-form video content. Collaborations with respected members of the outdoor sports community, referred to as "Global Sports Activists," exemplify this strategy.
By investing in content that tells unique and compelling stories, such as the documentary featuring trans climber Lor Sabourin, Patagonia continues to demonstrate its commitment to values beyond conventional marketing, establishing a lasting connection with its audience.
Patagonia's journey, marked by sustainability and authenticity, is highlighted through impactful campaigns like "Don’t Buy This Jacket" and "Worn Wear."
The brand's commitment extends to bold political stances and a corporate branding ban.
Unconventional marketing, focused on UGC and brand ambassadors, strengthens community bonds. Overall, Patagonia's success stems from its narrative, eco-friendly choices, and engaged community, showcasing a commitment to a sustainable future.
As Patagonia continues its commitment, how do you think the brand will improve its supply chain and evolve its engagement with loyal customers and the global community?
Logistics
3PL Guide: The Role of Third-Party Logistics in 2024
For e-commerce business owners, managing customer orders is a critical aspect of daily operations. As your business grows, handling order fulfilment in-house might become impractical.
As the volume of orders grows, you might outgrow your warehouse’s operational capacity, you’d need to find a new space, and hire new employees … Managing all of this can be quite challenging and time-consuming.
This is where third-party logistics (3PL) companies step in!
Partnering with a 3PL helps in achieving both short and long-term supply chain goals, with data and technology enhancing progress.
The 2024 Penske Third-Party Logistics study shows 95% of shippers find 3PL collaborations successful. Notably, 89% credit 3PLs for improving service, and 80% acknowledge their role in reducing logistics costs.
This guide provides you with all the necessary information about 3PL services, helping you decide if they're a good match for your e-commerce needs.
1. Understanding third-party logistics companies
To kick things off, let's unravel the acronym itself.
Traditionally, "3PL" stands for third-party logistics, a strategic outsourcing solution where companies leverage external service providers. They manage certain aspects of their logistics and supply chain operations.
This collaboration allows e-commerce companies to focus on their core business. While entrusting transportation, warehousing, and reverse logistics to specialised partners.
Simply said, 3PL orchestrates your e-commerce operations from A to Z.
But nowadays, some partners are revolutionising the 3PL landscape.
Logistics companies are offering more advanced solutions to help e-commerce businesses grow and track in real-time data related to your inventory, orders, returns…
Some have even developed their own Warehouse Management System (WMS) and Transportation Management System (TMS) to make operations more efficient.
They integrate easily with your CMS (Shopify, Magento, BigCommerce, WooCommerce, Amazon…) for easy fulfilment operations.
These new 3PL partners are now actors in your e-commerce business growth.
By capitalising on their expertise, fulfilment companies have created tools to help you increase your conversion rate, client lifetime value, and client retention rate.
By streamlining your pre-purchase and post-purchase processes, they offer opportunities to boost your revenue and stand out among competitors.
2. 3PL: What do they do?
A 3PL is also referred to as a fulfilment company, fulfilment warehouse, order fulfilment company, or fulfilment centre.
3PL companies offer several logistics services, generally including:
- Transportation management (shipment and reception)
- Delivery
- Warehousing
- Inventory management
- Picking and packing
- Kitting (product bundling)
- Reverse logistics (returns)
- B2C and B2B order fulfilment process
- WMS/TMS
- Pre-purchase and post-purchase tools and apps
- Cross-border logistics
- Freight forwarding…
3. What are the advantages of 3PL?
According to a McKinsey study, e-commerce logistics costs have been consistently rising since 2010 due to complex needs such as returns management and faster fulfilment.
Currently accounting for 12-20% of e-commerce revenues, these costs might rise to 15-25% soon due to wage pressure and higher final-mile expenses.
While logistics costs represent a significant portion of your margin, they should be viewed not just as an expense but as an investment. Logistics and operational excellence can also set your brand apart from your competitors.
Clients expect faster delivery, and a poor delivery experience would stop 85% of online shoppers from ordering again.
Logistics can serve as a true growth lever for your e-commerce brand, helping increase your LTV.
While you can always grow at your own pace without a 3PL, consider the associated costs of not outsourcing your order fulfilment.
This includes buying a warehouse, spending a lot of time managing it and hiring a lot of qualified workers. Likewise, you will have to deal with carriers directly. Also, it will be more difficult to handle seasonality and peak seasons like Black Friday or Christmas. And we know how it can easily become a nightmare!
Choosing to partner with a fulfilment company goes beyond outsourcing logistics.
It's a strategic decision that brings a lot of benefits, reshaping the way your e-commerce operates.
3.1 Cost efficiency
Working with a 3PL partner can provide cost savings, which is one of the main advantages.
Businesses can benefit from economies of scale and optimise transportation routes by leveraging the expertise of specialised logistics providers.
Except if you have a very strong brand or very high order volume, you will get more attractive prices when working with a 3PL rather than negotiating on your own.
At the heart of any 3PL company lies transportation management. Whether it's shipping goods across borders or delivering products to the end consumer, third-party logistics providers excel at optimising routes, choosing the right carriers, and ensuring timely deliveries. This orchestration not only reduces shipping costs but also enhances the overall customer experience.
Bigblue Tips
At Bigblue we built a strong relationship with +20 European carriers like Colissimo, Royal Mail, or Correos, to offer our merchants the best prices.
Also, with our smart carrier offer, we can select the most cost-effective and qualitative delivery options based on your client’s shipping address.
3PLs can help you manage your supply chain efficiently and without errors.
Using shared warehousing can reduce logistics costs. You pay only for what you use, instead of building and maintaining oversized facilities.
If you work with a fulfilment centre that already has a good WMS/TMS, you can also save money by not having to invest in pricey technology.
3.2 Customer experience and service level
As mentioned before, with the recent arrival of new 3PL partners, they can offer you a new way to optimise your pre-purchase and post-purchase experience.
They can improve your delivery experience, your website conversion rate, your customer service and your returns experience.
For example, like Amazon, if you provide your customers with a clear delivery promise with an Estimated Time of Arrival (ETA) of their orders, you can increase your product page conversion rate.
Bigblue Tips
At Bigblue, we designed our solution and features at the forefront of innovation to free you from logistical challenges and allow you to fully focus on your expertise.
Bigblue provides you with access to personalised parcel tracking emails and pages, ETA displays directly on your product page, and a returns management portal with a printerless option for your B2C and B2B orders.
3.3 Scalability and efficiency
Picture a well-organised warehouse as the backstage of any well-organised logistics.
3PL providers excel at managing warehouses efficiently, strategically placing inventory and tracking inventory levels.
This meticulous approach ensures that products are readily available when needed, minimising delays and optimising storage space.
3PL partners play a pivotal role in minimising stockouts and overstock situations.
4. Understanding logistics models: 1PL vs. 2PL vs. 3PL vs. 4PL
5. How does 3PL pricing work?
The cost of 3PL services depends on several factors, the complexity of services required, the scale of operations, and the level of technology used. Larger volumes may lead to better rates, but advanced tech could bring extra costs.
The most common types of pricing will be a minimum flat fee and/or usage-based pricing.
For each order, a cost will be incurred depending on the number of products to pick, pack, the packaging used and the destination of the delivery.
For example, Bigblue's pricing includes order processing service fees, a subscription to the Bigblue app, and optional Experience Packs for Conversion, Delivery, and Returns, based on usage.
Our order processing fees cover the complete handling of your products: warehouse reception, storage, order preparation, packaging, parcel shipping, and transportation. And discounts are available as the monthly order volume increases.
6. How to choose a 3PL company?
Choosing a 3PL provider is not just outsourcing logistics, but an important decision shaping your brand's efficiency, growth, and customer relationships.
Begin by assessing your e-commerce needs, focusing on product identification, order volume, and return frequency. Move on to a comprehensive review of your potential 3PL provider, prioritising industry expertise, technology capabilities, their e-commerce platforms integration, and references. Finally, delve into a detailed examination of costs and fees.
To sum up, exploring third-party logistics presents a strategic path for e-commerce success. With benefits like enhancing customer experiences, cost efficiency, and streamlining supply chains, a fulfilment partner, offers valuable advantages. As you think about potential transformations for your business, consider this: How could using 3PL reshape your e-commerce journey?
Drowning in order fulfilment tasks? Free up your time and resources with Bigblue's comprehensive solution. We handle warehousing, picking & packing, shipping (including eco-friendly options!), returns, and everything in between. Our automation and smart features optimise efficiency, while dedicated account managers ensure a smooth experience. Get a free consultation and see how Bigblue can streamline your operations and empower you to focus on what matters most – growing your business.
E-commerce trends
Unlock Bellroy's global success: $83M to $300M in 5 years
Picture this: In 2009, at a kitchen table in Bells Beach, Australia, Andy Fallshaw and friends sought to redefine the wallet. Frustrated by the bulky and unappealing appearance designs, Fallshaw aimed for simplicity.
In just a year, Bellroy was created, bringing together style and functionality like never before. Fast forward to 2022, Bellroy has evolved into a $300 million omnichannel brand — a massive jump from its $83 million valuation five years ago.
Business Insider, Forbes, and GQ all agree: Bellroy makes the best men's wallets.
Now, let's dive into what exactly made Bellroy rise to the top in the accessories game.
1. Bellroy's secret recipe to put their wallets in every pocket
1.1 Leveraging their community to reinvent an everyday carry
Bellroy was established in 2009 by designers Andrew Fallshaw and Hadrien Monloup, along with engineers Lina Calabria and Matthew Fallshaw.
In 2010, inspired by insights from their blog testing ground, Carryology, the brand started with the five wallets, emphasising the concept of "less is more."
The first products were: Very Small, Very Protective, Slim Sleeve, Hide & Seek, and Take Out – all designed for minimalist everyday carry.
These straightforward product names directly identified pain points based on feedback from their blog community.
“We re-engineered the wallet from the ground up … They took off [and] they found unbelievable resonance. That notion of slim wallets, which hadn’t been a focus before then for brands, grabbed hold,” Fallshaw shared.
As they work closely with groups like our Carryology community to make sure their designs always get better.
The Bellroy Slim Sleeve wallet has been updated over 22 times since they first made it over ten years ago. It’s still the same wallet, just improved each time.
Currently, Bellroy sells +80 products across several categories, including wallets, bags and accessories, on its website.
1.2 Adopt an omnichannel approach to make sure to meet your target
Fallshaw adopts a versatile retail strategy for Bellroy, aiming to meet customers where they prefer to shop.
Bellroy's presence spans its DTC e-commerce site, Amazon, and in over 1,200 physical stores thanks to their extensive partnerships with retailers since 2012.
The brand seeks out retailers who understand their customers and cater to them effectively. This includes fashion-focused stores like Barneys NY, Nordstrom, and Incu, as well as action sports retailers like Patagonia and Burton Japan, and specialty stores like Loft and Tokyu Hands in Japan.
Thanks to their strong sell-through rates, they've earned recognition among top-tier retailers worldwide.
1.3 Match your customers' values
Bellroy's sustainable commitment is represented by embracing Patagonia's sustainable 'cradle-to-cradle' approach.
It’s based on three principles:
- THINK BEYOND THE PRODUCT
- IT'S EQUALLY ABOUT WHAT YOU USE AND HOW YOU USE IT
- CONSIDER THE ENTIRE PRODUCT LIFE CYCLE
Following Patagonia's principles, Bellroy realised that they don't have to harm the earth to make great products. By using high-quality materials and lasting designs, they are helping to protect the environment.
A few key initiatives:
- Certified B Corp company since 2015.
- Leathers come from gold-rated LWG tanneries and DriRanTM, with a focus on environmentally conscious practices to save water and reduce chemicals.
- 100% recycled polyester and nylon fabrics for sustainability.
- MIRUM collection featuring regenerative plant-based, plastic-free leather.
- 100% of their paper packaging is FSC-certified paper 100% of their polybags are made from 100% recycled conten.
2. Bellroy’s marketing strategies: Innovative campaigns and limited edition
2.1 Slim Your Wallet campaign
In 2011, Slim Your Wallet gained popularity and focused on highlighting the benefits of their slim, minimalist wallets compared to traditional bulky wallets.
Through creative marketing materials, including videos, blog posts, ads, and social media content, Bellroy emphasised how their wallets could make your life easier and declutter everyday carry items.
On their website, you can see a visual representation of how the slim wallet compares to standard ones. By sliding a control along a line, users can witness both wallets filling up with cards and cash, effectively illustrating how Bellroy's slim wallet tackles the common problem of bulky wallets.
This campaign resonated well with the audience and still defines Bellroy’s identity.
2.2 Product collaboration and limited editions
Bellroy effectively increased its reach by collaborating with brands in similar industries, especially those with a broader audience.
In 2012, it signed with its first international retailer, Huckberry.
Impressed by Bellroy's Hide & Seek wallet, Huckberry requested a customised version, leading to a highly successful limited release.
In 2016, Barneys New York collaborated with Bellroy and in 2017, they did one with Google for the Made for Google collection.
The collaboration is still ongoing, Bellroy created multiple phone leather cases for the Pixel smartphone but also a sleeve for Google's Pixelbook.
This collaboration not only served as social proof for Bellroy but also garnered extensive free press!
Since then, they have had multiple successful collaborations with different designers like illustrator Karan Singh, personalities like NBA star Patty Mills and brands like STAPLE.
Bellroy smartly used their collaboration to expand its product range at the same time: phone cases, tech kits, functional bags…
In conclusion, Bellroy's rise from a small kitchen table in Australia to a $300 million global e-commerce giant illustrates the impact of innovative design, smart marketing, and a focus on sustainability.
They've reshaped the accessories industry with simple yet functional products, capturing the hearts of consumers worldwide.
After 15 years after its creation, how does Bellroy plan to navigate the evolving consumer trends and adapt their marketing strategy to meet them?
Logistics
Textile logistics: 3 challenges of the fashion industry
In 2025 European consumers will spend $999 each on fashion products. And in 2024, 60% of fashion purchases will be made online, up from 47% in 2023.
Fashion e-commerce brands, unlike other sectors, have to manage product seasonality, changing trends and collections, consumer expectations, and high return rates…
This significantly impacts the whole supply chain including the sourcing of the products, transportation, types of storage, and product returns management.
By outsourcing your fashion logistics to a third logistics partner (3PL), e-commerce businesses can solve easily those challenges.
Let’s see the 3 main challenges of textile logistics and how brands can adapt to become the best at fashion logistics!
1. Rising costs and supply chain challenges in the fashion industry
In 2024, fashion industry leaders are worried about global issues like political tensions, economic instability, and rising prices.
Despite a slight dip in global inflation (from 6.9% to 5.8%), concerns remain.
The market is expected to divide, people who will still buy fashion products while others will turn to second-hand options due to sustainability and budget concerns, or personal preferences…
Rising costs for raw materials, energy, and transportation also impact profits and make clothes more expensive for consumers.
Effectively coordinating the transportation of goods from the supplier to the warehouse and then to the customer involves navigating complex processes. This is crucial in shaping overall logistics costs.
Relying on just-in-time production and global distribution networks can make transportation disruptions have a big impact, causing longer wait times and higher operating expenses.
Bigblue Tips
Optimise your transportation costs with Bigblue’s Smart Carrier selection.
You provide the best delivery guarantee to customers, streamlining the decision-making process and ensuring the most cost-effective and fast delivery.
Fashion trends come and go in shorter cycles, with retail giants like Zara and H&M changing collections every 15 days to keep up the pace with trends. Because of that, consumers demand ultra-fast deliveries.
The entire supply chain optimisation has become a great challenge for the fashion industry.
2. Managing the omnichannel complexity: The fundamentals of your textile logistics
With customers often browsing in physical stores and making purchases online, the logistics process must support a cohesive customer journey. This includes ensuring the availability of products in-store, on your website, and at retailers, facilitating easy returns, and optimising storage for varied product types.
Ensuring a consistent brand experience throughout various customer journeys poses a challenge for all brands, particularly in the fashion industry. Clear size policies and images, enhanced by user-generated content (UGC), are crucial.
2.1 Efficient storage for fashion logistics
Different storage methods are used in warehouses for fashion brands depending on the product type.
Easily wrinkled clothes are typically hung to prevent damage, while less sensitive items like cotton t-shirts can be folded and shelved, saving space and allowing efficient handling of numerous orders.
Dynamic racks enhance storage and selection efficiency for various products, including non-fragile clothing, shoes, and accessories.
Bigblue tips
When choosing a logistics company or a warehouse partner to work with, it is important to look for a suitable infrastructure for textile storage. Check if your 3PL partner’s warehouse has hanger racks or structures for overhead storage.
At Bigblue, we offer specialised stowing options for fashion brands, including hanging racks, pallets, and shelves.
We operate a dedicated Fashion warehouse, leveraging our expertise to ensure optimal storage solutions for our clients' garments.
Also, more and more luxury clothes and accessories are being sold and bought online. Nearly 57% of luxury customers make their orders online, leading to strong growth in the haute-couture market. The problem is that luxury products do not cost the same as mid and low-end products. The risk of theft is therefore much higher.
Bigblue Tips
To manage inventory effectively, it's recommended to use unique SKUs (stock-keeping units) for each product variant (colour and size), reducing errors and returns.
Outsourcing to a logistics company like Bigblue allows a focus on sales and marketing, while we handle storage and organisation. We ship from the same warehouses as the main actors of the fashion industry like Sézane or Inditex.
2.2 Avoid overproducing or stockouts for your fashion e-commerce business
If you manage an omnichannel brand (combining in-store sales, an e-commerce platform and resellers), stock management can be quite complex.
Avoid overproducing to prevent dead stock while ensuring you don't run out of popular items. It's about finding that sweet spot for successful inventory management.
Keep in mind that out of 100 billion garments made yearly, 92 million tonnes end up in landfills. Manufacturers and retailers contribute significantly, producing 13 million tons annually due to overproduction—around 30% of clothes made each season go unsold.
You can optimise your stock management process by analysing your consumers' behaviour to help you determine whether your products are selling more in-store or on your online store.
By studying these statistics, you can adapt your purchases and stock distribution according to the most advantageous distribution channels.
If you run an omnichannel brand, you might face a problem where you run out of products. This happens when there's a mismatch between what you have in your system and what's physically available, or if you misestimate orders. Running out of stock during busy times can hurt your sales.
While you can't control how fast your supplier makes things, you can plan to have extra products to cover times when sales go up or when you release new items.
You can decide to look at past sales data for your popular items (empirical view) or think about what might happen in the future based on economic trends and what people want (forward-looking view). It's your choice to pick the method that fits your online store best.
Bigblue Tips
To avoid running out of stock, you can set up alerts to know how much you have in real-time and optimise your forecast so you can better plan with your suppliers. It's easy to do on your Bigblue dashboard!
2.3 The importance of packaging for your fashion brand
Receiving their parcel is the first physical point of contact with your brand. As they are eager to open up and try on their new outfit, 4 out of 10 of them will share their unboxing experience on social media. So make sure your parcel is camera-ready!
Make it a point of honour to choose a package packaging that represents the values of your brand image. Whether it's the colours, the materials used or the designs: everything must be consistent!
At the same time, a lot of bad buzz related to excessive packaging can hurt the reputation of e-commerce businesses.
Whether it's the colours, the materials used or the designs: everything must be consistent!
Bigblue Tips
Creating packaging in your brand's colours tends to appeal to customers. However, beware of the risk of theft! Branding a package (putting distinctive signs that it belongs to a brand), especially on the outside of the box, can lead to more theft.
At Bigblue, we recommend using internal branded packaging and adding a personalised flyer!
3. Smart management of returns for fashion logistics
For online clothing brands, effectively managing returns is essential.
The average rate of returns for online shopping is around 30%, and sometimes it goes up to 50%!
Reverse logistics plays a key role in the supply chain, ensuring a smooth and efficient process for handling returned items.
Many fashion companies are forced to throw away almost 25% of returned products due to poor reverse logistics management. A serious loss of profit which can be avoided!
This involves setting up a process for handling returns, whether due to size issues, defects, or other reasons.
From checking the condition of the product to the return of defective clothing (recycling, donation, etc.) to standard returns. The entire returns policy must be studied!
It's important to have a clear returns policy, especially if the return address varies based on the reason for the return, like quality issues or size mismatches.
Transparency in communicating this policy is key to avoiding logistical complications.
Bigblue Tips
Bigblue's Return portal offers a seamless, branded experience, saving time for support teams and providing insights to improve product collections.
Transform your returns into a customer retention tool with a store-credit system, minimising refunds and encouraging exchanges.
Successfully managing fashion logistics relies on strategic integration, and adapting to the surge in e-commerce and consumer expectations. Overcoming challenges in the supply chain, omnichannel management, and returns becomes pivotal. Whether enhancing your internal processes or collaborating with a 3PL partner, embracing technology and customer-centric approaches positions you at the forefront of the dynamic world of textile logistics.
Bigblue, your 3PL partners with the best fashion logistics experience
Working with major fashion brands in Europe like From Future, Muji, Cabaïa and Believe Athletics, we can help your brand automate your fulfilment.
We're eager to discover your brand and enhance your customer experience. Let's make a difference together!
Marketing
SMS Marketing 2024: Best practices and expert tips
Consumers have now become plagued by “inbox fatigue” — where they avoid the promotions tab because there is too much being sent to them.
The global daily email volume surged from 269 billion in 2017 to 333.2 billion in 2022, projected to hit 392.5 billion by 2026 (Statista).
Texting, the world's preferred communication, is quick and easy. With the rise of mobile e-commerce, brands focus on SMS engagement.
Businesses globally are projected to allocate a substantial £50 billion to SMS messaging by 2025.
Flashback to ten years ago … Following the 2009 recession, consumers saw a decrease in direct mail from brands due to the expense associated with this channel — besides, people just weren’t shopping much any more.
Accordingly, businesses looked for the next “cutting-edge” technology to promote their goods and services: email marketing. Almost every business uses email in some capacity, and the channel is getting crowded (from a promotional standpoint).
In this blog post, we'll examine:
- Why SMS marketing is becoming more and more popular among businesses
- SMS marketing best practices for your e-commerce brand
- Tips to grow a healthy list base
- SMS marketing examples that worked
1. Connect and convert: What is SMS marketing?
SMS marketing, or Short Message Service marketing, isn't boring. It's all about adding excitement to your promotions, you can add pictures, videos... It's also one of the speediest and simplest way to connect with your customers.
Look at this awesome MMS marketing campaign by Basic Piece with a waving GIF to grab attention! Source: Omnisend
People now prefer SMS over calls whereas B2B companies still love emails.
- Key sectors include healthcare (55%), banking/finance (46%), and e-commerce/retail (45.9%).
- 64% wanting more texts from businesses.
- 60.8% prefer SMS for customer service.
- Only 47% of brands used text messaging for customer communication (2022 Essendex and PwC study).
2. Exploring the advantages of SMS Marketing
SMS marketing benefits are multiple for e-commerce brands seeking direct and effective communication with their audience. Let's delve into the advantages that make SMS marketing a compelling strategy for your marketing efforts.
2.1 Instantaneous reach
SMS messages demonstrate higher deliverability rates, with most messages being opened within three minutes. Additionally, they are less prone to being marked as spam compared to emails.
Here's a tip from Klaviyo, one of the leading marketing automated platforms for emails and SMS marketing:
Short messages (under 50 characters) get higher click rates (about 12%). But, be aware, that longer messages (over 150 characters) may see diminishing returns. So, if you have something important to say, a longer SMS can still work. In other words, the shorter the better!
2.2 Ridiculously high open rates and click-through rates
One of the remarkable features of SMS marketing is its astonishingly high open rates.
On average, the open rate for emails is 20% and the click-through rate is 2%, whereas the open rate for SMS is 98% and the click-through rate is 36%. Source: Layerise
This high engagement level ensures that businesses can effectively convey their message and capture the attention of their target audience.
2.3 Direct and personalised
SMS allows for direct, one-to-one communication, enabling e-commerce brands to tailor messages to individual preferences for a more personalised touch.
💡 In a study by Attentive on how consumers wanted to interact with brands, 81.2% of consumers opted into at least one brand’s SMS program to benefit from an enhanced shopping experience.
They mentioned the following reasons:
- Discover deals and new products
- Curated shopping experience
- Limited-time release and launches
- Restock messages
- Personalised responses to questions
- Connection to brand
2.4 Proven ability to sell
Beyond creating awareness, SMS marketing has a proven track record of driving sales.
With the right call-to-action and enticing offers, e-commerce businesses can push customers to make immediate purchases.
Whether it's a limited-time discount or an exclusive deal, SMS marketing has the power to convert leads into sales effectively.
According to a report by Insider Intelligence, companies often achieve a 10x to 20x return on investment through SMS marketing.
3. Weighing the disadvantages of SMS marketing
While SMS marketing campaigns have their strengths, it's essential to be aware of potential drawbacks. Let's examine the disadvantages that e-commerce brands should consider when incorporating SMS marketing into their strategy.
3.1 Opt-in requirements
E-commerce companies must obtain explicit consent from recipients, and this opt-in process may limit the size of your SMS subscriber list.
3.2 Characters limitations
A single SMS message is limited to 160 characters.
It necessitates concise content and limits the amount of information that can be conveyed.
3.3 Potential for intrusiveness
Poorly timed or overly frequent messages can be perceived as intrusive, leading to a negative impact on customer relationships.
3.4 Limited content type
The simplicity of SMS restricts the types of content that can be shared compared to more multimedia-rich channels.
4. 5 proven strategies to grow your SMS list
Before you start sending out SMS campaigns, you first need to put together a healthy subscriber base. This is a crucial step!
The ultimate checklist for SMS marketing best practices:
- Always ask permission to opt-in: Secure explicit consent before sending marketing texts to subscribers, ensuring compliance with data protection regulations.
- Opt-out transparency: Provide a clear "STOP" option for subscribers to easily opt-out, preserving SMS deliverability.
- Incentivise subscription: Offer value such as exclusive discounts or timely updates to make the subscription worthwhile.
- Respect timing: Send messages during appropriate hours, avoiding disruptions, like marketing texts at 3 a.m.
The best results are usually seen when creating multiple places for customers to opt-in, and diversifying options for customers.
4.1 Checkout collection
Perhaps, the easiest and most natural way to start collecting subscribers is right at the checkout section of your online store.
At the moment of purchase, your customers are more likely to agree to sign up for text marketing updates from you, since they’ve already got familiar with your brand and products. On average, 45% of your customers who have come this far will opt in at checkout.
4.2 Email subscribers
Another easy way to build a list is simply to convert an existing email subscriber list by introducing a dynamic button to sign up for SMS within your emails. You have to be clear here, both in the visibility of this option in your email and in what you will message to people. You can also consider a collection in a welcome series or post-purchase flow (wink wink 😉).
For example, Soylent encourages its email subscribers to register for SMS alerts, ensuring they're the first to be informed when new flavours are released.
4.3 Website pop-ups
You can also enable desktop and mobile collection pop-ups. They are easy to set up, responsive, highly effective and a crucial part of every brand’s efforts to grow its list of subscribers. It’s really important to test pop-ups over time (with different messaging, images and styles). These work best when incentivising signup with a discount or an exclusive offer.
4.4 Gamification elements
Introduce gamification elements to your SMS sign-up process. For example, users could earn points, and badges, or unlock special perks by referring friends to subscribe. This turns the sign-up process into a more enjoyable and rewarding experience.
4.5 QR codes
QR codes are perfect for brands looking to expand their base using offline media channels. They can be used anywhere (such as: in print media or as posters at store windows in shopping malls, billboards and more). For best results, use them with incentive-based campaigns like a giveaway or early access to a new collection, to draw even more attention.
5. 8 SMS marketing message types for your next campaign
Explore a diverse range of SMS marketing message types to elevate your next campaign. From engaging welcome series that create impactful first impressions to strategically crafted abandoned cart messages that recover potential sales, there are versatile approaches.
5.1 Welcome series
Make a lasting first impression. Greet new subscribers with a warm welcome, introducing your brand and offering incentives like gift vouchers or discounts to turn them into customers.
5.2 Abandoned cart
Combat high cart abandonment rates by reaching out 30-60 minutes after abandonment. Offer incentives like free shipping to recover sales, embedding it in the abandoned cart URL for convenience.
💡 Cool example to follow:
Alkaline Herb Shop, a budget-friendly supplement brand, aimed to enhance customer engagement by integrating Yotpo SMS alongside email. Teaming up with Hawke Media, they achieved remarkable results, including a 160x ROI, 20% monthly revenue growth through SMS, and recovery of 33% of abandoned carts via SMS messages.
5.3 Post-purchase
Capitalise on a new customer's momentum. Encourage additional sales by offering complementary products. Express gratitude, request reviews, and promote loyalty programs to enhance customer engagement.
5.4. Loyalty offers
Retarget inactive customers with cost-effective text messages. Implement win-back automation 30 and 60 days post-purchase, offering incentives to encourage repeat purchases. Provide meaningful reasons for contact, such as new collections or intriguing updates.
5.5. New order confirmation
Quickly confirm purchases, sending order IDs via text for a seamless customer experience.
5.6 Shipping confirmation
Immediately inform customers when orders are shipped, providing tracking IDs and order status links.
5.7 Order delivered feedback
Demonstrate post-sale care by seeking feedback on the customer experience.
In summary, SMS marketing is vital for e-commerce in 2024.
With email saturation, SMS offers direct and effective communication, boasting high open rates (98%) and proven sales impact.
Despite drawbacks, building a robust subscriber base using the tips provided is key. Diverse message types further enhance its effectiveness.
In essence, SMS marketing is a dynamic tool for e-commerce brands in the competitive digital landscape of 2024.
Now, you only have to decide and select the best SMS marketing platform based on your needs!
Marketing
Unveiling Stanley's Hype: Quencher's Impact & TikTok Viral
Stanley's journey from a 110-year legacy brand to a $750 million powerhouse isn't just about tumblers. It's about a smart makeover and retargeting.
The transformation is thanks to a fresh marketing strategy, notably with the reintroduction of the Quencher – a 40-ounce tumbler featuring a straw.
Influencers and TikTok fuelled its virality, and features like aesthetics and limited editions made it collectable.
Dive into the Quencher's impact and Stanley's marketing strategy, leading them to become the top drinkware brand in North America with a 275% YoY surge in sales.
1. Stanley’s brand history: 110 years old brand to viral sensation
Established in 1913 by William Stanley Jr., the brand Stanley has a history of creating stainless steel vacuum sealed cups and tumblers designed to keep items at the right temperature.
With a versatile range from their bestselling Stanley 1L Bottle in Hammertone Green to the Quencher insulated cups, it caters to various needs, from outdoor expeditions to everyday activities.
Terence Reilly became President of Stanley in 2020. Formerly associated with Crocs, he has been instrumental in steering the success of Stanley's Quencher tumblers. His marketing expertise previously contributed to transforming Crocs into a high-fashion brand.
As Stanley introduced new colours for their cups, sales consistently rose.
Revenue surged from $73 million in 2019 to $94 million in 2020, more than doubling to $194 million in 2021.
In 2022, the revamped Quencher model, featuring a sleek design and additional colours and finishes, led to another doubling of revenue to $402 million. Projections indicated that by 2023, revenue was expected to reach $750 million.
The brand saw a 275% YoY increase in Quencher sales, becoming North America's No. 1 drinkware brand.
2. Stanley's Quencher virality: From a failed camping mug to one of the most sought-after products in the world
In 2016, Stanley launched the Quencher, a 40-ounce stainless steel tumbler. However, its initial sales were not great, prompting the company to cease restocking and marketing efforts in 2019.
Terence Reilly aimed to broaden the customer base, particularly targeting women, by reimagining the brand as a fashionable accessory. Brighter colours, straws for cold drinks, and a focus on aesthetics were incorporated. Also, its collectable nature and aesthetic appeal that fit the “clean girl aesthetic” or the “watertok” trend contributed to its popularity.
The Quencher's features, including its ability to keep drinks hot or cold, handle, and fit in car cupholders, additionally contributed to its appeal.
The hashtag #Stanleycup has accumulated more than 6.7 billion views on TikTok, becoming a symbol of status and style, priced at £44.99.
When you invest in a Stanley mug, it's more than just a tumbler; it's your entry into the exclusive "The Sisterhood of the Stanley Tumbler" community, celebrated by the NYT.
Reilly's measure of a brand's success is its visibility at major airports. Seeing people willingly use and showcase the product in public spaces indicates a strong brand. The Quencher has become a fashionable and desirable item worn by travellers.
2.1 Quencher's evolution: From workmen's essential to women's favourite, fuelled by influencers
Initially targeted at workmen and outdoorsmen, the Quencher gained massive traction, particularly among women, thanks to influencers from The Buy Guide.
The founders of The Buy Guide, Linley Hutchinson, Ashlee LeSueur, and Taylor Cannon, played a pivotal role in showcasing the Quencher's appeal to women and expanding its customer base.
In 2019, The Buy Guide posted the Quencher on social media, leading to a viral trend, especially on Instagram.
The collaboration also resulted in a successful wholesale partnership, with The Buy Guide quickly selling out of 10,000 cups.
2.2 TikTok virality sparked with the fire accident
The brand went viral after a TikTok video in which a Stanley Quencher survived a car fire gained immense attention.
The video gained over 94.5 million views and prompted Stanley's President, Terence Reilly, to respond by offering new tumblers and a replacement car.
This heart-warming response garnered over 56 million views and positive comments, boosting the brand's image.
2.3 The Quencher adored by celebrities
Stanley's tumblers are also embraced by celebrities like Olivia Rodrigo.
“I was actually TikTok influenced by TikTok buying this,” she said.
Rodrigo even said in her interview how much she loves her Quencher H2.0 Flowstate.
Stars like Jessica Alba and Carrie Underwood also showcase their Stanley's on social media, with Underwood adding crystals for a personalised touch.
In a recent episode of The Late Show, Adele was spotted sipping from her cup during James Corden's final Carpool Karaoke segment.
2.4 Quencher’s limited collaboration and editions
Stanley applies a scarcity model by releasing limited-edition colours and collaborations in small batches. This strategy, reminiscent of sneaker releases, created a sense of exclusivity and high demand.
At its peak, the Quencher had a waiting list of 150,000 people.
In 2022, Olay collaborated with Stanley to release a limited-edition "Blue Adventure" Quencher, promoting its latest skincare line.
Celebrities like country star Lainey Wilson have also introduced Stanley collections to connect with their fans. It was sold out in only 11 minutes.
Their latest collaboration, Stanley x Starbucks for Valentine's Day edition, was only available at Target and quickly sold out, leaving many disappointed customers.
"I wanted a red one so bad, but my Target was sold out by 8:05." — One TikTok user lamented.
Those unable to secure the limited-edition tumblers are resorting to resale platforms such as eBay and StockX.
However, the cost is significantly higher.
For example, the Stanley x Starbucks tumblers were priced in triple digits, starting at £300.
Lessons from Stanley's success are applicable across various industries. Key strategies include knowing your customers and being open to new ones, leveraging user-generated content for authenticity, and adapting to cultural shifts while staying true to your brand.
The brand expanded its marketing without abandoning its heritage. The brand's ability to adapt to cultural shifts and embrace new marketing channels, including Instagram and TikTok, while maintaining its legacy, contributed to its exceptional growth.
