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How Linen Club distributes inventory efficiently to drive better sales while saving 40% in shipping costs through Eshopbox
The problem
Linen club started selling on marketplaces with Eshopbox but through one fulfilment centre — Eshopbox Mumbai FC. However, after achieving a certain level of scale they hit a saturation point. This prompted them to gather deep insights from different marketplaces which could help them accelerate their sales. Understanding how the marketplace algorithm works on product visibility is the key to achieving better sales. All the leading marketplaces promote product listings with faster delivery times.
Hence the team at Linen club established splitting their inventory optimally as their next goal, presenting the following challenges to Eshopbox:
- How will the inventory split across multiple locations work?
- How will the inventory from multiple locations for the same SKU be made available on marketplaces?
- How to reconcile distributed stock in hand easily?
- How will the order allocation work in a way that the optimum fulfilment center fulfils the order?
The solution
Linen Club opted to store inventory at all the Eshopbox fulfilment centres strategically located across India. Eshopbox technology platform is built to solve the complexity of operating a network of fulfilment centres and splitting the client's inventory for maximum business efficiency. The solution proposed by Eshopbox had the following features:
- Access to all Eshopbox FCs across India with complete visibility of inventory in the Eshopbox application.
- Historic sales reports with information on customer locations for planning optimum inventory allocation.
- Intelligent order routing to ensure the order is shipped from the optimal fulfilment centre based on the customer location.
- Offer next day delivery by enabling Amazon Prime and Flipkart Assured for 100% inventory.
40%
reduction in shipping costs
60%
quarter over quarter sales growth
100%
products enabled with Amazon Prime and Flipkart express
The payoff
Linen Club has been able to operate with multiple marketplaces to accelerate their sales velocity with optimum inventory hold.
- They have been able to offer next-day delivery to majority of their customers
- They have managed to reduce shipping costs by 18% by storing inventory closer to their customers.
- They have boosted their product visibility across marketplaces by improving their seller ratings.
- They experienced an quarter over quarter growth rate of 60%
40%
reduction in shipping costs
60%
quarter over quarter sales growth
100%
products enabled with Amazon Prime and Flipkart express
Case study
How Linen Club distributes inventory efficiently to drive better sales while saving 40% in shipping costs through Eshopbox
Industry
Apparel & Accessories
Company size
Mid Size
Industry
Apparel & Accessories
Company size
Mid Size
40%
reduction in shipping costs
60%
quarter over quarter sales growth
100%
products enabled with Amazon Prime and Flipkart express
Inventory distribution across multiple locations has proved to be a big difference for our marketplace business with our products getting closer to the customer. We are strategically storing inventory in 3 Eshopbox fulfilment centres now. We have seen an increase in 2-day shipping reach by 103%. Not only is this better for our customers but we also gain a 13% savings on the bottom line.
Shruti Agrawal, Head Marketing- Aditya Birla Group, Linen Club
About
Linen Club
The Problem
Linen club started selling on marketplaces with Eshopbox but through one fulfilment centre — Eshopbox Mumbai FC. However, after achieving a certain level of scale they hit a saturation point. This prompted them to gather deep insights from different marketplaces which could help them accelerate their sales. Understanding how the marketplace algorithm works on product visibility is the key to achieving better sales. All the leading marketplaces promote product listings with faster delivery times.
Hence the team at Linen club established splitting their inventory optimally as their next goal, presenting the following challenges to Eshopbox:
- How will the inventory split across multiple locations work?
- How will the inventory from multiple locations for the same SKU be made available on marketplaces?
- How to reconcile distributed stock in hand easily?
- How will the order allocation work in a way that the optimum fulfilment center fulfils the order?
The Solution
Linen Club opted to store inventory at all the Eshopbox fulfilment centres strategically located across India. Eshopbox technology platform is built to solve the complexity of operating a network of fulfilment centres and splitting the client's inventory for maximum business efficiency. The solution proposed by Eshopbox had the following features:
- Access to all Eshopbox FCs across India with complete visibility of inventory in the Eshopbox application.
- Historic sales reports with information on customer locations for planning optimum inventory allocation.
- Intelligent order routing to ensure the order is shipped from the optimal fulfilment centre based on the customer location.
- Offer next day delivery by enabling Amazon Prime and Flipkart Assured for 100% inventory.
The Payoff
Linen Club has been able to operate with multiple marketplaces to accelerate their sales velocity with optimum inventory hold.
- They have been able to offer next-day delivery to majority of their customers
- They have managed to reduce shipping costs by 18% by storing inventory closer to their customers.
- They have boosted their product visibility across marketplaces by improving their seller ratings.
- They experienced an quarter over quarter growth rate of 60%
