Case Study
The Crafts Brand
How an 8 Figure Crafts Brand and one of Hobby Lobby’s biggest suppliers solved DTC with Marketplace Valet
About the project
Marketplace Valet partnered with this Crafts Brand to manage the 3P selling experience on Amazon, as well as be the backend fulfillment solution for their portfolio of 12+ arts and crafts brands.
Challenge
The Crafts Brand has been one of Hobby Lobby’s biggest suppliers for years. Their model has always been around selling wholesale, shipping pallets to the business customer. They did not have the infrastructure to manage individual orders to a single customer. This was costing them big time in fulfillment-related expenses. They also didn’t have any Amazon dedicated resources, so the online catalog on Amazon of over 12000 products needed a lot of love
Proposed Solution
Marketplace Valet could warehouse the entire catalog of products at our state-of-the-art facility in Corona CA. With all of the products on site, we could easily handle the order fulfillment for Amazon, and the 12+ individual branded e-commerce websites from one location. Marketplace Valet would also optimize their listings for better sell-through in their Amazon 1P Vendor relationship, and provide an FBM “backup” on their listings.
Results
The Crafts Brand was able to completely outsource e-commerce order fulfillment to Marketplace Valet, saving thousands in infrastructure and operational costs. Plus the brand now had our agency working to improve the brand’s image on Amazon, increasing sell-through across the catalog. With such a large SKU count, 12000+, we customized a storage solution based on a flat $ rate per SKU, vs per location, helping them minimize the expense to store the goods.
Conclusion
Partnering with Marketplace Valet enabled the Brand to outsource e-commerce fulfillment to the experts, thus avoiding the high cost of operation at their facilities designed for wholesale pallet fulfillment. The Brand was also able to clean up its large catalog of listings with copy and content improvements by leaning on Marketplace Valet’s listing optimization expertise. All of this was accomplished without the need for large upfront capital resources or expenses, or the need for additional in-house staffing resources.
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