Case Study

Best Buy Canada

Traditional brick and mortar retailer finds success in multi-channel sales

With roots as a midwestern brick-and-mortar store, Best Buy has seen significant change and growth over the last 50 years. Its reputation as a top consumer electronics retailer may be the first thing that comes to mind for most people, but for years the company has offered a broad product offering both online and in store.

Since opening their first Canadian store in 2002, Best Buy has become so well known for its range of products that it’s now one of Canada’s top retailers. Partnering with Shipwire, Best Buy Canada has demonstrated leadership in creating an omnichannel presence, ensuring they are top of mind for customers who want a smooth, consistent customer experience, no matter where or how they shop.

“More and more retailers have figured out you cannot have vendors: you need partners. In that regard we are ahead of the game. [Once you] have that in place, you can steer in the direction of customer behaviors and innovation.”
German Benedetti Senior Manager, Omni-Channel Logistics, Best Buy Canada

Ecommerce Evolution

Like many retailers born before the internet age, Best Buy’s expansion from store-based retail sales into ecommerce channel sales came with challenges. Best Buy knew they needed to add online capabilities early on, however when they started to explore their options, direct-to-consumer shipping was in its infancy. They also needed to determine how best to plan for multi-channel sales to ensure the expansion was net-positive for the business as a whole.

Best Buy’s goal has always been straightforward: be present wherever their customers are and sell them what they want. This has meant expanding their product offering beyond consumer electronics to incorporate verticals that attracted more shoppers and selling them through a multitude of channels. From luggage, to furniture, baby products, Best Buy started offering what was in demand and exploded their SKU count from 8,500 products in 2014 to 60,000+ products today.

Direct-to-consumer online sales also required an updated operational strategy to reach customers in concentrated areas of Canada. Best Buy Canada’s distribution centers were not set up for direct-to-consumer fulfillment, so the company found value in leveraging Shipwire’s established warehouse network to reach individual shoppers.

Omnichannel Success

Best Buy Canada’s expansion into ecommerce fulfillment began small. Each week, Shipwire received a few pallets of product intended for direct-to-consumer orders. Today, volume has grown to include multiple daily truckloads of product deliveries. The company’s omnichannel operation also includes a thriving dropship network that enables them to supply more products and support their growing direct-to-consumer sales.

The partnership between Shipwire and Best Buy Canada is built on a culture of collaboration, trust, and a customer-first mindset. The teams work together as partners, rather than vendor and client, which makes them more successful overall and better able to serve the needs of the end customer.

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