Case: Online Bridal Store
How Going International Using Exactly LLC's Back Office Grew Sales by 30%
In 2008, Online Bridal Store only sold to US customers. International expansion presented an attractive opportunity, but it faced a large obstacle. Over 90% of Online Bridal Store’s sales were drop-shipped by manufacturers, and very few of the manufacturers were willing to drop-ship internationally.
Critical Requirements
In order to keep with Online Bridal Store's overall store promises, international sales were required to meet the following conditions:
- Reasonably fast shipping turnaround
- At least one low-cost international shipping option to keep with the store’s overall competitive pricing
- Expedited international shipping options to accommodate brides with approaching wedding dates
Actions
Online Bridal Store elected to use the Back Office international clearing center model, where drop shipping manufacturers ship to Exactly LLC's US clearing center, which in-turn ship to the international customer. Even with two legs to the shipping route (the domestic, then the international), Online Bridal Store was able to provide international customers with the following.
- International shipping turnaround of 5 business days or less
- Flat-rate international shipping of $12 to Canada, $18 everywhere else using USPS international services.
- Expedited shipping options using UPS international with guaranteed delivery times
Results (2010)
International sales provided an immediate boost to Online Bridal Store’s revenue. During it’s first year, by the end of 2008, international sales accounted of 18% of sales. By 2010, international sales accounted for 30% of sales.