Keetsa Grows Green with Shipwire
Green shipping practices and shipping carbon footprint reduction is a conversation that has been gaining momentum over the past few years. Shipwire initially wrote 5 ways that our unique warehouse model reduces shipping costs and an individual order’s carbon footprint. A leading eco-business blog also picked up on our green shipping practices calling it “smart & green”.
Damon Schechter, CEO & founder, will speak on the “Greening your fulfillment operation: A good idea that creates a market benefit” panel at the Internet Retailer Conference & Exhibition (IRCE) on Wednesday, June 17th at 11:30am, at the Boston Convention & Exhibition Center.
Joe Alexander from Keetsa.com will be speaking with Damon and talking about how their supply chain has driven more than cost reductions and a smaller carbon footprint…it has driven sales growth direct-to-consumer and through eco-friendly mattress retailers.
When Keetsa and Shipwire first connected we knew that there were synergies. In January of last year we publicly shared information about our working relationship, how Keetsa had saved 30% over their own warehouse with Shipwire. They had eliminated a lot of costs and headaches so that they could keep their team focused on the customer experience and growing distribution. Read about it here.
In anticipation of Keetsa and Shipwire participating on a green fulfillment panel we wanted to revisit our joint case study and see what had changed. We found out that the business model was really accelerating (we had a feeling; but, it was nice to check). Amazing 200% growth in this economic environment and massive expansion of their Keetsa certified retailer channel. They are now the highest traffic mattress website in the world! Nice job Keetsa!!! Keetsa is focused on completely changing the game for how people buy mattresses. We believe in “changing the game”, it is why we started Shipwire.
If you can’t make IRCE, don’t worry…here is a quick update on some of the topics that we’re going to go over together.
A flexible supply chain puts mattress retailer’s problems to rest
In this economic climate, it’s all about survival of the fittest and when Keetsa Mattress teamed up with Shipwire Order Fulfillment, the fittest was also the greenest. Not only did a partnership manage to cut costs for Keetsa and help them grow by 200% over the past year, it also reduced their carbon footprint. A supply chain overhaul helped expand Keetsa’s distribution base by allowing them to offer retailers a compelling value proposition and a low inventory starting investment.
With Shipwire merchants eliminate the hassles of storage and shipping and focus on growing their businesses. Shipwire offers the Internet-delivered Store-Sell-Ship™ platform that plugs any merchant into a global network of warehouses. By leveraging multiple warehouses to store and ship inventory, merchants can save huge amounts on shipping costs – increase margins and reducing buyer price points. Calculate your shipping savings.
Here is how Keetsa uses Shipwire:
- Drop ship for retailers: With Shipwire order fulfillment, Keetsa can automatically drop ship the right product to a buyer each-time a retailer sells a mattress. This helps Keetsa’s retailers cut costs on buying inventory and warehousing, making it easier for even “Mom and Pop” shops to sell the Keetsa brand with a minimal investment in inventory. Keetsa has grown through a down market and even stood up to the competition of other established brands by making their supply chain efficient and flexible.
- Reduce lease costs: Keetsa rents less retail space because they centralize inventory with Shipwire rather than use expensive in-store warehouses. When it comes to in-store sales, using Shipwire for centrally managed inventory has allowed Keetsa to spend less money on retail space converting Keetsa stores into a mattress buying experience rather than a visit to a mattress warehouse. Customers can try the mattress in store but get free shipping if they take the delivery at home rather than carrying it out of the store. Retailers spend less on inventory, Keetsa needs to stock less product and they can actually ship faster and easier from a warehouse closer to the customer. Keetsa can also keep closer contact with their customer, which is a focal point for their business. Intimacy with the customer is very important, and Keetsa maintains an excellent dialogue with their customers through Yelp, Twitter and a novel shipping process that benefits their customers and their retailers.
- Free shipping for retailers and buyers: Keetsa retail partners benefit by offering free shipping on any Keetsa mattress in the U.S.A. Keetsa uses Shipwire to reduce the cost of shipping on every order. Keetsa offers their retailers “free shipping” because Shipwire has helped them to geographically place inventory closer to end buyers resulting in shorter deliveries, less carbon emissions from shipping and a more environment friendly supply chain. In fact, Keetsa has never delivered a mattress themselves and don’t even own a truck. All this makes Shipwire the lean, green supply chain machine that an eco-friendly brand like Keetsa was looking for!
- Preserve capital. Shipwire has powered Keetsa’s growth by allowing them to focus precious capital on marketing and market growth, rather than warehousing and infrastructure. Keetsa pays for the warehouse space and order processing that they need. No investment in warehouses, security systems, inventory management, warehouse employees, forklifts, etc.
Pioneering the new way of business in the present market, Keetsa and Shipwire have teamed together and paved a way for smaller showrooms, lower retail rents, a variable cost of order fulfillment and savings to the tune of 30% versus comparable warehouse solutions. All this, while making sure even Mother Nature can rest a little easier.
Keetsa spoke about their eco-friendly supply chain at Internet Retailer. (Audio coming soon)