The Challenge
Logistics challenges drive shopping cart abandonment for growing retailers and brands. Sixty-nine percent of consumers cite high delivery costs as a top reason to abandon orders, and 35% cite slow delivery speeds.
A global skincare brand grew 20% year-over-year. But they continuously lost sales due to a 64% shopping cart abandonment rate created by high shipping costs and unsatisfactory shipping options.
The Opportunity
The brand tackled the challenge head-on with a series of shopping experience trials. The findings: Better delivery options and free shipping led to reduced cart abandonment. The brand planned a 15% reduction in cart abandonment to boost sales. They now needed a path to better delivery options—fast.
The brand’s fixed supply chain network couldn’t expand quickly to meet their new delivery goals. Customers expected fast, free delivery. To meet expectations, the brand needed fulfillment nodes close to customer demand centers to reduce delivery times and transportation costs. Their supply chain needed to evolve dynamically.
To meet expectations, the brand needed fulfillment nodes close to customer demand centers to reduce delivery times and transportation costs. Their supply chain needed to evolve dynamically.
The Solution
The global skincare brand partnered with Flexe to rapidly expand their logistics network through a phased approach. Flexe launched, tested and learned alongside the brand, reducing risk and maintaining business continuity.
The brand leveraged Flexible Warehousing Infrastructure to drive speed, operational efficiency and cost savings—all while meeting customer delivery expectations.
They expanded their network flexibility, scoping six nodes across customer demand centers with the Flexe Logistics Network. They integrated their fulfillment network seamlessly with a single integration via the Flexe Technology Platform. They then optimized and automated order flow across their expanded network. The integration also reduced manual labor and unified inventory management—at no additional cost.
Results
With Flexe, the global skincare brand reached 90% of eCommerce customers with a next-day delivery promise. All while reducing final mile costs by 9.4% by placing inventory close to customer demand centers.
Flexe expanded network nodes and enabled faster, cheaper shipping. The global brand then expanded its delivery options to meet customer expectations.
Their initial goal: Reduce cart abandonment by 15%. With Flexe, they reduced cart abandonment by 25% in the first phase of network expansion. Flexible logistics creates satisfied customers.
Impact
With Flexe, the global skincare brand reaches 90% of eCommerce customers with a next-day delivery promise. All while reducing final mile costs by 9.4%.
