“We’re not doing any more wholesale. It’s too much of a liability to speed and on our balance sheet.”
Scandibørn offers Scandinavian-inspired children's design, decor, essentials, toys, accessories and more, perfectly suited to meet the needs of busy modern lifestyles. They are a one stop shopping destination for eco conscious pieces in captivating designs, all with a fun, Nordic spirit. From pregnancy essentials, beautiful babywares, wooden toys and stunning home interiors, they’ve brought together a trusted community of carefully sourced unique brands and artisans.
Reduce liability and increase customer loyalty by going 100% dropship
Scandiborn was founded on a common ecommerce model in which they’d purchase and manage the inventory behind the products for sale on their website. Filling a much needed gap in Scandinavian inspired nursery decor, Scandiborn instantly found relevance and built a strong base of loyal customers.
For Scandiborn, maintaining loyalty in the crowded children’s ecommerce market meant a continuous stream of new and exciting brands was always available on the website. But with cash and staff focused on purchasing, warehousing and fulfilling orders from inventory, they lacked the capacity to continue differentiating and increase customer relevance.
Relevance, as Scandiborn soon found out, can be fleeting.
Reduce working capital and staff tied up in buying and managing inventory
When compared to dropshipping, buying and selling wholesale inventory offers higher margins for retailers. In Scandiborn’s case, owned inventory impacted their ability to quickly adapt to changing consumer preferences and represented a risk to overall margins when inventory buys were misforecasted - an increasingly common problem for retailers in the face of rapidly changing consumer preferences.
“Any deal we’re currently working on is solely dependent on dropship, it’s that serious” Gabrielle Greenberg - Director of Marketplace · Scandibørn
Rising labor costs further impacted margin, while inflation pushed the risk of carrying inventory even higher.
As a fast growing ecommerce retailer, the team at Scandiborn knew they could make the difference in margin between wholesale and dropship fulfillment irrelevant with an increase in total sales. Now, they needed a solution to automate the program.