Unlocking the secrets of successful Direct-to-Consumer businesses

Dropshipping was, for the last couple of years, the thing to do if you want to build a successful e-commerce business. I mean we’ve all seen those ads telling you how Teddy, who was broke and slept on his best friend's couch, made thousands of dollars within a week through dropshipping.

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Running a dropshipping store is a valuable experience. It means that you know how to run online ads and digital marketing campaigns, how to set up a Shopify store, how to manage customer relationships, and how to deal with huge peaks of stress.

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Some of you have tested it and failed, while some others have succeeded (congratulations!). Top dropshippers indicate that the success rate in the dropshipping business ranges from 10 to 20%. Only Just 10% of dropshippers achieved success in their first year!

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In the latter case, it means that not only do you have the necessary skills to run an online business, but you also know your market. You have the customer base and the money to reach new heights and lead your brand to bigger stages.

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In this blog post, you’ll find a step-by-step guide on how to transition from dropshipping to traditional e-commerce. Before we move further, let me explain why it is necessary to move into e-commerce to achieve growth and success for your brand.

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1. Dropshipping vs e-commerce: The key differences

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Despite being a cheap and lost-risk way to start an online business, dropshipping has many limits in the long term. Since you have zero control over your inventory, it is hard to ensure that your products are processed straight away or aren’t on backorder. You also lack visibility on your product quality.

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Knowing that dropshipping margins are low, it is hard to make huge profits on single items. This means that you’ll need a high sales volume to make profits, but volume means more orders, more orders mean more logistics-related problems and more problems mean less time to focus on your brand’s growth.

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One of the biggest cons of dropshipping is also the lack of control over the product’s quality. This leads to a difference between your customer's expectations and the product in reality, which results in an unpleasant customer experience.

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This lack of control over many important factors of your business and the long shipping time negatively affect the whole experience and are the biggest limitations of dropshipping, which leads to stagnation.

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When it comes to proper e-commerce, it is slightly different. Starting an e-commerce requires some investment to support the expenses related to manufacturing and storage. It also represents a greater risk since the investment is bigger. Saving some money from your dropshipping activity can be a great way to cover these expenses.

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Since you have more control over every part of your business, you’ll be able to negotiate your manufacturing costs and set your selling price and thus ensure to have the right margins.

Another advantage is that you have full control over your brand and you can offer high-quality products. I mean you can manufacture your product line, you can also manage your inventory however you want and so you have full control over all your supply chain processes, from manufacturing to shipping. 

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This will help you offer different shipping options (No, 30-day shipping isn’t an option any more) and ensure the best experience for your customers.

Going from dropshipping to traditional e-commerce will play a major role in upgrading your customers' experience and driving growth.

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Getting the most out of dropshipping and overcoming its limitations by expanding your business to e-commerce is a great solution if you want to develop a successful and widely-known brand.

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To help you during your transition from dropshipping to e-commerce, you can follow this step-by-step guide:

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2. Finetune and adapt your brand idendity

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This is the most important part of your transition as it will affect every step you’ll take during your e-commerce journey.

Building on your dropshipping foundation, it's time to deepen your brand identity for the e-commerce transition. 

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Reflect on the insights gained from your initial venture. 

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Ask critical questions: How can your brand better serve its target audience? What unique value can you offer in the e-commerce space? Use these insights to refine your brand's vision and values. 

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Upgrade your website and marketing strategies to mirror this evolved identity, ensuring they resonate more effectively with your audience and set you apart in the competitive e-commerce landscape.

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3. Develop a product design and source potential manufacturers

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You’ll have to think about your product design and its specific components. Having previous experience in your niche thanks to your dropshipping website, should help you to understand your customer's expectations and determine which kind of product you want to develop and what are its differentiating features.

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Once you have the design, you can start looking for a manufacturer. Think about where you want your products to be manufactured.

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During your choice, you’ll need to consider different factors. You’ll have to understand the costs associated with each manufacturer. If this one is overseas, you’ll also need to inform yourself about importation processes and the costs related to it. You can have a look at Ovrsea or Flexport, which are freight forwarders companies that can help you with your cargo’s importation.

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To get you started, you can contact your old dropshipping provider who can introduce you to potential manufacturers or maybe even manufacture your products by himself.

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Don’t forget to take into consideration your brand’s positioning during your manufacturer choice and product design. For example, if you’re selling sneakers and you position yourself around sustainability and you target vegan consumers. Make sure to use raw materials and choose a manufacturer that respects your brand’s values.

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3.1 The ultimate checklist for negotiating manufacturing costs

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Preparation:

• Gather industry pricing data through market research.
• Analyse raw material and labour costs.

• Assess reputation and certifications.
• Verify compliance with standards.

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Relationship building:

• Establish transparent channels.
• Build trust and reliability.

• Regularly engage with suppliers.
• Attend industry events.

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Negotiation strategies:

• Determine optimal order volume.
• Explore discounts for larger orders.

• Encourage competitive bidding.
• Shortlist potential manufacturers.

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Cost understanding:

• Break down manufacturing costs.
• Identify potential savings.

• Negotiate favourable payment terms.
• Align terms with cash flow.

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Post-negotiation:

• Finalise terms and conditions.
• Specify quality standards and timelines.

• Establish ongoing cost reviews.
• Adjust strategies based on market changes.

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Legal and compliance:

• Ensure contract legality.
• Address intellectual property considerations.

• Confirm supplier compliance.
• Adhere to environmental regulations.

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Relationship management:

• Implement monitoring systems.
• Address issues promptly.

• Establish continuous improvement.
• Encourage mutual feedback.

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4. Create a business plan and make a budget forecast

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Transitioning from dropshipping to e-commerce requires higher investment and better planning, for that, you can use the business model canvas.

This will help you determine all the big aspects of your business like your cost structure and your revenue streams.

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To reduce all risks, make sure to forecast all your costs and revenues. This will also allow you to have better control over your finances and to better plan your business growth. It will help you to predict your cash flow and make better strategic decisions.

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5. Choose your logistics provider

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The main difference between dropshipping and e-commerce is that you’ll be managing your inventory.  

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While it can be easy to do it during the early stages, managing e-commerce logistics becomes a real pain as soon as orders start to flow, especially when you have no previous experience with logistics.

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The best option for this matter is to work with a logistics provider who can handle your inventory storage, order fulfilment, and returns. This will ease the burden on your shoulders and you will be able to focus your effort on other areas of your business. It will also help you get the best rates for storage and transportation.

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Make sure to choose a logistics partner that can scale with you and support your worldwide expansion. 

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Choosing a provider who will help you optimize your logistics processes in the short and long run is crucial to ensure continual growth.

Working with logistics experts will help you offer the best options for your consumers. They won’t need to wait 30 days to get their products any more. This will drive better satisfaction and an upgraded customer experience.

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Deciding the right logistics provider is a tricky task as there are many factors that you should take into consideration. To know more, check our article on how to choose the best logistics partner for your e-commerce.

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<sub>Bigblue tips

Unlock the full potential of your e-commerce logistics with Bigblue. Benefit from our industry-specific expertise and seamless platform integration to streamline your operations. Elevate the brand-customer relationship through accurate delivery estimates, live tracking, and personalised unboxing experiences. Committed to sustainability, we align with the increasing environmental awareness among consumers. 

Choose Bigblue as your logistics partner, offering expert guidance and robust solutions to foster your business growth.</sub>

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6. Develop a marketing strategy to launch your e-commerce store

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If you’ve successfully managed all the steps above, you’re almost done with your transition. While your products are being manufactured, don’t forget to set a marketing strategy to notify your current customer base about the changes you’re making. Keeping your customers updated will drive more engagement towards your brand.

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Think about promoting your new products on social media and by email. Make sure to take advantage of the momentum you generated through your dropshipping activity by distributing coupons to your previous customers to push pre-orders.

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Try to also focus your efforts on the launching day as if it were an event that no one wants to miss. This will help you to drive sales from the first minute of your e-commerce journey and introduce yourself to the market in the strongest way.

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You can also engage with influencers in your niche to build trust, boost awareness around your brand and promote your product on social media. Working with influencers is also a great way to generate content about your brand without spending too much effort.

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Try to encourage your customers to leave reviews, and feedback or create user-generated content for your brand. You can, for example, create a hashtag that your customers can use on social media and promote on your channels. User-generated content is usually more trusted and doesn’t cost anything.

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So depending on your niche, choose the most suitable channels and push marketing as much as possible to boost pre-orders and ensure a strong introduction into the market.

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7. Enhance your customer's experience and create brand advocates

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Now that you have full control over every aspect of your business and you have got rid of all the dropshipping limitations, you can upgrade your customers’ experience and provide the best journey possible for them.

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Once your customers notice your effort and your improvement, your relationship will get even stronger and you’ll be able to build a real engagement toward your brand.

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Take advantage of this and try to build a network of brand advocates who will promote your brand and products for you.

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Don’t forget to build a strong customer support team to answer and fix your customer's inquiries and ensure the best experience for them at every stage of their journey.

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Dropshipping is a great way to start your online business but its limitations make it difficult to achieve sustainable growth.

However, it is a great way to gain the experience needed to run an e-commerce store and is a great first step to growing a successful brand.

Salomon, known for crafting ski edges and catering to outdoor enthusiasts, has undergone an extraordinary transformation, unexpectedly finding a remarkable place in the fashion sneaker world.

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The company is known for designing some of the most sought-after footwear in the fashion scene, adored by Rihanna, Bella Hadid and Hailey Bieber. 

In 2022, it became StockX's fastest-growing footwear brand, with sales surging over 2,000% from the previous year.

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Salomon's journey tells the intriguing tale of how a family business, born from post-World War II craftsmanship, evolved into a cult gorpcore sneaker brand.

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1. Salomon’s history  

1.1 Origins and skiing innovation

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In 1947, the Salomon legacy began as François Salomon and his son opened a workshop for crafting wood saws in Old Annecy, a city near the French Alps. 

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"A company is something that must last forever." François Salomon

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As skiing became popular after World War II, Salomon shifted to making ski equipment. Georges Salomon, François's son, transformed ski edge manufacturing with the "skade,” introducing a safety toe piece and the first binding called "the Lift," replacing the traditional leather straps.

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1.2 Multisports expansion and Adidas era

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In the 1970s, the brand dominated the ski gear market. Adidas recognised its success, acquiring the brand in 1997 for a multi-sport vision. However, Amer Sports took over in 2005.

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1.3 Hiking innovation and fashion influence

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The brand diversified into hiking, launching the trail running-inspired XT-6. 

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Fashion interest sparked in 2016 when the Broken Arm store in Paris stocked Salomon. 

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It all started with the Snowcross, a high-performance hiking shoe specially designed for outdoor wear and resisting harsh winter conditions. 

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Later, designer Boris Bidjan Saberi featured a reimagined Salomon boot in a 2016 runway show, while Jean-Philippe Lalonde from Veilance Arc’teryx joined to develop Salomon's Sportstyle business.

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Salomon's success over its 75-year history lies in delivering functional products that endure, appealing not only to sports enthusiasts but to a broader fashion-forward consumer base. 

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The sportswear brand surpassed $1 billion in revenue in 2022.

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^{Ecommercedb: GLOBAL NET SALES (2022) US$54.4m
Wholesale: 78%, D2C: 22% inc. 11% on their e-commerce} 

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2. Salomon's marketing strategy unveiled

2.1 New identity: Tomorrow is Yours campaign

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The brand worked with DDB Paris on its new mission and identity.

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“Going forward, we aim to inspire a wider, younger audience to connect with the outdoors, but Salomon is first and foremost a performance sports brand,” says Salomon President and CEO Franco Fogliato, an avid trail runner and skier himself.

“From Alpine and Nordic skiing to trail running and hiking, all of our products will continue to be designed to perform in the most demanding and competitive outdoor sports environments. We will never compromise on that.” transforming to inspire new generations of outdoor sports enthusiasts. 

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Their new signature tagline "Tomorrow is Yours" refers to Georges Salomon who repeated: “What fascinates me the most is what I’m going to invent tomorrow!”. 

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The new Salomon brand video aims to inspire the community to embrace new outdoor experiences, showcasing the brand's adventurous spirit and featuring international athletes. It encourages viewers to share their own experiences using the hashtag #TomorrowIsYours.

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2.2 Salomon’s fashion collaborations and celebrity obsession 

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The fashion industry and cultural icons embraced the brand with open arms, and collaborations became the brand's reason for becoming mainstream. 

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PUSHA T, Bella Hadid, Hailey Bieber and Rihanna started wearing Salomon sneakers, the brand started to become the new trendy shoes that everyone wanted to have, causing multiple stockouts. 

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Rihanna captivated global audiences with her electrifying Super Bowl Halftime Show performance. She stole the spotlight wearing a Loewe jumpsuit along with eye-catching pink and red Salomon sneakers from the collaboration with MM6 Maison Margiela.

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Post-performance, the athletic footwear brand experienced a staggering 4,000% surge in online searches, leading to a rapid sell-out of these coveted trainers.

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Over the years, Salomon has partnered with many brands to create special capsules like Palace, Avnier, COMME des GARÇONS, Hidden NY, Carhartt WIP, MM6, Sandy Liang, and Madhappy. 

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2.3 GQ's recognition and the gorpcore wave

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In a surprising turn, GQ named the XT-6 the sneaker of the year, riding the early wave of Gorpcore. 

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Called after the casual term for trail mix, Good Ol’ Raisins and Peanuts, the Gorpcore style taps into the charm of off-mountain usefulness, technical insulation, and all-terrain flexibility. 

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This recognition shows how Salomon has moved beyond its skiing roots. The brand's impressive journey has had a big impact, turning Salomon into a symbol of versatility and style for a wide range of consumers.

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2.4 Social media communication

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Their social channels engage their audience through inspirational content, athlete stories, and outdoor adventures on platforms like Instagram, TikTok, and Facebook.

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On Instagram, they have two separate accounts, Salomon and Salomonsportstyle.
One focuses on sports content especially outdoor like sky and trail and the other one on sneaker content with style inspiration and collaboration with artists. 

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Social media strategy includes captivating visuals, community interaction, and a call for user experiences.

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Their digital presence reflects a brand deeply rooted in history, innovation, and a commitment to empowering individuals to embrace the best of themselves through intense sports experiences in nature. 

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Salomon's journey from crafting ski edges to becoming a fashion powerhouse is a testament to its adaptability, innovation, and the unexpected twists in its narrative. The French brand's ability to stay true to its roots while embracing diverse industries showcases unique resilience. 

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Salomon's influence on both fashion and outdoor activities is unmatched, making a lasting mark on the ever-changing world of footwear and style.

1. The barcode and SKU guide for high-speed e-commerce!

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1.1 SKU and e-commerce barcode: what are they?

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SKUs and barcodes are two ways of uniquely identifying a wide range of products that allow for almost perfect traceability, which is necessary in today's world.

• A Stock Keeping Unit (SKU) is a way of uniquely identifying a product within a company.
• A barcode, on the other hand, is often used in retail stores and e-commerce to uniquely identify a product from the moment it leaves the factory until it arrives at the customer's premises.

But what are the specificities and usefulness of these two e-commerce identification codes? Let's have a closer look.

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1.2 SKU and Barcode: The identification tools of e-commerce

E-commerce merchants regularly find themselves torn between using SKUs and barcodes for product identification. While these two techniques are similar, they are not the same and can be used together to provide an even more comprehensive and effective way of tracking and uniquely identifying products.

By understanding the differences between SKUs and barcodes and how they can be combined, e-commerce merchants can make the most of these powerful tools to improve their operations and better serve their customers.

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1.3 What is a SKU?

An SKU is a unique reference that allows the simple identification of products thanks to a sequence of letters and numbers structured in the same way. This reference is generally used internally and on various inventory management systems.

Some fields such as cosmetics manage their stocks thanks to SKUs and batch numbers. The SKU will then correspond to the product itself (e.g., red nail polish), and the batch number (e.g., manufactured on 25/09) will uniquely identify the product in case of a problem with the item.

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<sup>Assign your own SKU

You may have noticed that your supplier or manufacturer also uses product identification numbers, such as the UPC, or Universal Product Code. Reusing them can be quite tempting, but we advise you to assign your own SKU to avoid mistakes if one day your suppliers changes this number.</sup>

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1.4 What are barcodes used for in e-commerce?

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Every day, more than 6 billion barcode labels are scanned worldwide… Since it entered the market in 1974, the barcode has become essential in all physical stores to uniquely identify and track each product. 

But then, why use them in e-commerce?

The primary purpose of barcodes is the traceability of products in absolutely all sectors. This small, striated code allows us to uniquely identify a product in circulation, whether it is being sold or bought. It is enough that it is scanned to release all the stored information.

For example, let's imagine that you sell red nail polish. Wherever your product is in France, your red nail polish will be recognized and uniquely identified!

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2. Benefits of using barcodes in e-commerce logistics

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Let's imagine that the sales of your nail polish e-commerce sites explode: you will not be able to store, prepare and send 200 orders by hand, and you will have to outsource your logistics. And, to work with a logistician, you need barcodes!

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As an e-commerce business owner, you may find that you need to outsource your logistics when your sales start taking off. To work with a third-party logistics provider, you will need to use barcodes to track your products. 

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Barcodes allow you to track products, manage the flow of goods remotely, and keep track of your inventory levels in real-time. This eliminates manual counting and ensures that your inventory is always accurate.

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There are several types of barcodes that you can use to meet your specific needs. For example, you can use a GS1 128 barcode to manage product batches and include additional information such as expiration dates. By using barcodes, you can make your logistics operations more efficient and effective, allowing you to focus on growing your business.

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The barcode is your best ally. It ensures the traceability of your products and reduces human input errors!

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2.1 Create a SKU

2.1.1 The letters and numbers of the SKU

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When creating your SKU, you can personally choose the letters and numbers that will compose it. But keep in mind that it is a reference that must be logical and simple to understand by humans, especially the members of your team.

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It is preferable to avoid 0's and 1's, which can be confused with O's and I's. In the same way, special characters (&, #, @,"…) can be misread by machines and make your SKU unusable, so the ideal is to use only alphanumeric characters.

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Of course, you are allowed to use dashes to divide your unique SKU according to attributes. As with Red 46: VRN-RGE-046, which can be read by category-colour-size. A mnemonic for humans and easy for computer systems!

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2.1.2 What length for SKU codes?

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Shopify advises e-commerce merchants not to exceed 16 characters, but rather to stay between 8 and 12-digit codes. And even between 4 and 8 characters if you don't have a lot of references. At Bigblue, we use a sequence of 14 characters separated into 3 parts.

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2.1.3 Is it possible to have one SKU for several products?

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If your SKU starts to group numerous items, it loses all its usefulness within your company. The whole point of SKUs is to save time! If you group the red varnishes all together without making a difference between the different shades of red, it can be complicated to make a precise inventory count. Hello mess!

For example, making the collections appear in the SKUs can be interesting. Let's start again with our friend the red varnish: if it belongs to the fall-winter 2020 collection, its SKU could be VRN-RGE-046-AH20 to uniquely identify it from others.

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2.1.4 Is It possible for this to be done automatically?

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Of course, you don't have to do everything by hand! There are SKU generators like SKUGen for e-merchants on Shopify or Skugenerator for Gorgias users.

The use is simplified to the maximum: you just have to fill in the information about your products (size, colour, gender, …), and the generator gives you a ready-to-use SKU!

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2.2 How to generate a European Article Number (EAN) code?

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It is possible to generate a barcode or an EAN code in 2 different ways: in an officially recognised way on all physical marketplaces and stores, or in a fast and free way to understand the process.

2.2.1 The GS1 platform

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There are 3 main families of barcodes. The most common in Europe is the GS1 EAN 13 which belongs to the large family of one-dimensional or linear codes and contains 13 digits.

As an online store, make sure that your barcodes are recognised and unique to your product (which is essential if you want to sell on marketplaces, for example). You can generate them on the official website of GS1, the worldwide organization that generates barcodes for many countries (France, Belgium, and the US…).

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To be able to generate barcodes on this site, you must become a member. Membership is quite simple and fast to make, and is divided into 2 steps:

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1. The membership itself: fill in the information requested about your company (KBis, Code NAF…), and pay the membership fee. The latter is calculated according to your turnover and your field of activity. Once this membership fee is paid, you will have to pay an annual licence each year.

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2. Once you are a member of GS1 and have your company code, you can generate your barcodes yourself! The next step is referencing your products, either 1 by 1 or using a .csv file that groups them all together.‍

Finally, you only have to put your barcodes on your products, either by having them printed directly onto your packaging or by adding them thanks to a label glued or hung on your individual product.

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2.2.2 A low-cost solution?

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If you don't want to sell in supermarkets or on a marketplace (Amazon, for example…), you don't have to go through GS1 to obtain barcodes. There are free barcode generators on the internet. However, by going through this solution, there is no guarantee that the barcodes obtained are not already linked to another product in France or abroad.

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In addition to identification and traceability, you could use the barcode as an aesthetic element. And yes, a barcode on an item is not necessarily ugly: it can even be a plus for your packaging and wrapping. It's all a question of perspective.

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^{Style your barcodes! Designer Steve Simpson has found many ways to integrate the EAN code into the product, elegantly and graphically. The idea is no longer to hide it, but to assume it and design it!}

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SKU and e-commerce barcode: no more confusion!

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As soon as you start an e-commerce activity, generating SKUs for all products is recommended. This unique number allows you to facilitate one of the 3500 tasks of your day as an e-commerce merchant.

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Once your business grows, SKUs are no longer enough. 

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If you want to sell to a larger audience, such as in supermarkets, for example: the barcode becomes indispensable. Whether it is for carriers, suppliers, your future logistician in charge of the whole procedure and coordination…

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Not working with barcodes can become an obstacle to the smooth running of your business. So, to allow yourself to expand as much as you deserve, how about switching to barcodes? Now you have all the keys to get started!

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Planning a birthday gift for my friend took me on a digital shopping spree over the weekend. After nearly an hour of browsing, I found the perfect gift online, only to discover it was out of stock. Frustration and disappointment set in, prompting me to abandon the purchase. It was a clear case of me being ready to buy, but the store was not ready to sell.

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Stockouts, the depletion of a product's inventory, are inconvenient for both customers and businesses. For customers, it means wasted time, frustration, and dissatisfaction. For businesses, it means lost customers and lost sales.

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Although being out of stock indicates high demand, the negative consequences are substantial:

• Losing customers, sales, and revenues;
• A decrease in customer satisfaction, which leads to a damaged brand reputation;
• Bad customer reviews;
• Customer migration to competitors;
• A slowdown in growth.

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Stockouts can have a huge impact on your bottom line. Walmart executives reported they were leaving almost $3 billion on the table as a result of going out of stock.

‍70% of shoppers would shop at a competitor rather than wait for any length of time for out-of-stock items. So to avoid these unpleasant consequences for your e-commerce, we will share with you some tips on how to prevent stockouts from happening.

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1. Understand what are the causes behind stockouts:

Inaccurate data:

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Inaccuracies are pretty common when you’re dealing with inventory and stock management. With all the different product flows going in and out of your warehouse, it is easy to make mistakes and thus have variances between your real inventory data and the numbers you have on paper.

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Wrong lead time:

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Sometimes the time it takes to deliver all your products from the manufacturer to your warehouse can be a bit longer than you think, which leads to your new products arriving later than planned.

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Under ordering:

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Inaccurate data leads to poor decision-making. Having inaccurate demand forecasting can lead to under ordering and this is a major reason for running out of stock.

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Manual spreadsheets:

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Manual inventory management mainly causes inaccurate data. If you’re using Excel to monitor your inventory KPIs, I urge you to change it, because these errors not only lead to stockouts but can also lead to massive losses.

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In a study conducted by Stephen Powel from the Tuck Business School, they analysed 25 sample spreadsheets and found that 15 workbooks (spreadsheets for work) contained a total of 117 errors.

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While 40% of those errors had little impact on the businesses studied, 7 errors caused massive losses of $4 million to $110 million, according to the researchers’ estimates.

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_{Bigblue Tips
Bigblue helps you manage your stock easily. Predict demand, get alerts for low stock, and track which items are selling or sitting on shelves.}

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Now that we’ve seen the 4 main reasons behind stockouts and the damages they can lead to, let's move on and see what are the solutions to prevent being out of stock.

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2. Get real-time data:

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As seen previously, inaccurate data is the main cause of all your inventory troubles but thanks to technology, it has never been this easy to get access to real-time data.

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So the first step to preventing stockouts is to implement an inventory management system that gives you access to accurate data in as close to real-time as possible.

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Having a system that automatically updates your stock levels whenever a product is sold or returned will help reduce errors and accurately monitor your inventory, and thus have better and more accurate decision-making.

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^{Make sure to also analyse the item's velocity, this will help you to know how fast your items are moving.}

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To illustrate, let’s imagine that you have only 20% of your inventory for product X, but this product moves slowly and won’t run out until a few months, thus you might not have to reorder for some time.

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Contrariwise, if your product Z is a fast-moving item and takes just a few days to get sold out, you will then need to reorder it even if you still have some on hand.

Crossing between stock levels data and item velocity data will help you make better decisions and avoid stockouts.

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3. Forecast demand:

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To avoid stockouts, forecasting demand is a must-do. It will help you plan your future operations and know approximately how many products you’ll sell.

Knowing the demand you will be having for your products will help you to reorder the right amount of items and thus keep your stock levels safe.

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You can base your forecast on historical sales data, but you will also need to take into consideration many factors such as marketing campaigns, promotions, seasonality, and velocity. Diving deeper into these numbers will give you some insights into how your products are going to perform.

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During your forecast, you should also pay attention to the consumer trends in your market to notice if there’s anything new that people are gravitating towards. This allows you to anticipate and make sure to be ready in terms of operations.

Finally, don’t forget to create a repeatable monthly process that helps you analyse previous forecasts and compare them to actual results to see how accurate it is and how you can improve them.

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4. Set inventory alerts:

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After analysing the velocity of your items, you should be able to forecast when the product will be depleted. Compare that to the time needed to restock, and you will be able to know exactly when you should reorder.

Then make sure to set a threshold for each item so that you’re alerted automatically when the limit is reached. This will help you gain time since you won’t have to check your stock levels every 10 minutes and will ensure that you reorder your item on time and thus avoid stockouts.

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To calculate safety stock and reorder point, you can use these simple formulas:

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Reorder point formula= (Items sold per day) x (days it takes for new inventory to arrive) + safety stock

Safety stock formula = (Maximum daily usage * Maximum lead time in days) – (Average daily usage * Average lead time in days)

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There isn’t a one-size-fits-all "general lead time formula" that universally applies, as different industries, like manufacturing, have specific lead time formulas.

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One of the simplest and commonly used formulas looks like this:

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Lead Time (LT)=Order delivery date − Order request date

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Manufacturers and retailers often have different lead times for different products due to differences in fulfilment timelines, specifications, shipping, and more.

When calculating lead time, it's common to consider various aspects.

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Here are a couple of examples:

Lead Time (LT) =Manufacturing time + Procurement time + Shipping time (Most commonly used by manufacturers)

LT= Procurement time + Shipping time (Most commonly used by retailers)

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As an example, let’s imagine you sell 75 bags per day and that it takes 8 days, since the reorder, for new inventory to arrive.

During weekends and bank holidays, they can sell as many as 85 bags and the maximum lead time in days is 10.

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Safety stock = (85 x 10) - (75 x 8) = 250

Reorder point = (75) x (8) + (250) = 850

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Make sure to set an alert when your stock level reaches 750 bags so that you can reorder on time and ensure you won’t run out of stock.

Ensure an alert is set when your stock level hits 750 bags, enabling timely reorders and preventing stockouts.

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^{To improve operational efficiency and streamline order fulfilment, consider implementing advanced strategies to reduce lead time, meticulously calculating production lead time at each stage to ensure optimal results.}

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5. Communicate with your customers:

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Even if you have the best systems in place, stockouts can still occur. If it happens, being transparent and communicating clearly with your customers is the only way to keep their trust and build a stronger relationship.

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Update your products’ pages and clearly show that it is out of stock. Make sure to include the expected date for when the products will be available again, and allow your customers to register their email address to get notified when the product is back in stock.

You can also showcase similar products as a replacement and offer coupons and discounts to ensure that these customers won’t shop from a competitor's site.

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You can also offer free shipping for the people who left their emails and are willing to wait for the product to be back in stock. This will make the wait worth their time.

Even if this reduces your profit margins, it is still better than losing the sale and risking that the customer won’t ever come back. (honestly, I would have waited a bit more for my friend’s gift, if shipping was offered)

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6. Work with a logistics provider:

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If you’re managing your logistics internally and stockouts became a recurrent problem, think of externalizing your logistics to work with a company that has great expertise in this area. If you’re managing your logistics internally and stockouts become a recurrent issue, think of externalising your logistics to work with a company that has great expertise in this area and could reduce the workload related to supply chain management.

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Many providers nowadays offer very efficient services and can help you automate all your logistics processes.

Bigblue, for example, gives access to real-time data and offers its e-commerce clients a wide variety of features such as automatic inventory alerts and personalized tracking emails.

Externalising your logistics can help you gain time and focus on your business growth while ensuring that your inventory is always on point.

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Preventing stockouts doesn’t happen overnight. It is a hard task that requires a lot of effort.

Through these tips, you will be able to manage your purchase orders and inventory more efficiently and prevent potential stockouts.

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Remember, taking extra time to forecast demand and implementing an automated inventory system to have access to real-time data will help you considerably in the long run.

Preventing stockouts is a good way to meet customer demand, fulfil orders, and ensure the best possible experience for your customers (and their friends 😉)

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Brands are smartly using advent calendars, a classic holiday tradition, for marketing. Physical and digital calendars connect with customers daily, adding excitement for the festive season.

Getting it right is important, like when Chanel's 2021 advent calendar didn't go down well and faced a lot of criticism.

In the UK, advent calendars are popular. Nearly 38% of adults plan to buy them as presents, and about 19% for themselves.

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So, what's advent calendar marketing, and how can you make the most of it this year?

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Advent calendars: a rising trend in e-commerce marketing

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Advent calendars, a tradition dating back to 19th-century Germany, have evolved significantly from their origins of offering daily religious pictures to children. Today, they are a dynamic and interactive element in e-commerce marketing.

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Retailers and shoppers are showing a growing interest in advent calendars, with stores like Selfridges & Co in the UK doubling their range to 128 types in 2022.

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Modern advent calendars are evolving into a crucial tool for both family fun and e-commerce marketing. They offer a mix of product sampling and digital engagement through interactive online activities like contests and stories. 

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This not only enhances brand presence but also boosts excitement among existing and potential customers. Used creatively, they go beyond simple social media posts, adding a special touch to festive marketing strategies.

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Chocolate advent calendars top the list in the UK for both personal use (79%) and gifting (82%). Beauty products follow, chosen less frequently (13% personal, 20% for gifting). The rest of the respondents selected calendars ranging from toys, alcohol, jewellery, tea, puzzles, cheese, candles, or perfume.

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Many UK adults view advent calendars as either for children (43%) or too costly (27%). However, a third don't agree with these reasons, hinting at other factors. More affordable and age-inclusive calendars could shift purchasing trends.

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Key benefits of Advent calendars

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Advent calendars offer several advantages for brands:
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• Increase sales during the holiday season by offering daily deals or showcasing products in an advent calendar. This takes advantage of shoppers' excitement and boosts sales for brands.
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• Sharing advent calendar content on social media platforms boosts customer interaction and brand visibility. It keeps followers engaged with daily updates. Zagbijoux, for example, is using Instagram to post festive product photos daily.
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• Brands can use advent calendars for creative social media marketing during Christmas to engage potential customers.
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• Advent calendar can show gift ideas with a specific gift guide for each day, perfect for the holiday season.
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• Brands can attract potential customers by offering great deals like gifts, discounts, or popular gift cards. This is especially effective during this time of year.
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• Use advent calendars for holiday marketing campaigns to introduce new products or services festively.
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• Increase traffic to your landing page or blog post, enhancing online engagement and SEO.
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• Providing unique content or exclusive deals can create brand loyalty and differentiate a brand from competitors.
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• The advent calendar can help you plan different types of content for the holidays. It serves as a guide for what you want to share.
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• Educate audiences about products, as Swarovski did with their advent calendar, and gather valuable customer data and insights like their email addresses.

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Crafting an irresistible advent calendar

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The choice between physical and online

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Your brand's first decision is whether to opt for a physical or an online advent calendar. Physical calendars provide a hands-on experience, with customers opening each day's window for a gift. Virtual calendars on social media reach more people and are cost-effective, offering daily surprises like deals or festive content.

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Online calendars can significantly boost your brand’s reach and engagement. Platforms like Instagram or Twitter are perfect for daily reveals, fostering interaction and a community feel around your brand during the festive season.

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Alternatively, you could blend both physical and virtual calendars. This dual approach can enhance exposure, brand awareness, and word-of-mouth.

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10 top advent calendar ideas for brands

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Perfect for brands aiming to stand out this festive season with creativity and engagement! 🌟🎄

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• Daily discount codes, gifts, or vouchers: New exclusive offers every day.
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• Wish list: Fun competition with winners getting their most wanted item(s).
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• Product teasers and reveals: Exciting daily product reveals, with special offers.
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• Social media challenges: Fun, festive-themed social challenges with prizes.
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• Customer stories spotlight: Daily heart-warming stories or testimonials.
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• Interactive quizzes and polls: Daily brand-related quizzes or festive trivia with rewards.
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• Festive tips and tricks: Daily holiday tips, like gift-wrapping or festive recipes.
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• Behind-the-Scenes glimpses: Insights into your brand's holiday preparations.
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• Charity initiatives: Different charity features each day to promote community goodwill.
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• User Generated Content (UGC) showcases: Have followers share festive photos for daily prizes.

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Lessons from failed advent calendars campaign:

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• Tony's Chocolonely: Apologized for leaving an empty calendar window to protest slave labour in the chocolate industry, upsetting children.

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➡️ The need for sensitivity in marketing, especially when involving children. Social awareness campaigns should not compromise the customer experience.

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• Kmart: Accidentally omitted Christmas Eve from their calendar.

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➡️ The necessity of consistent quality control in manufacturing and thorough quality checks in product design, especially for date-specific items.

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• John Lewis: A mathematically incorrect message claiming Christmas was 16 days away on 2nd December.

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➡️ The significance of accuracy in educational or informative products, underlining the need for brands to verify all information.

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• Cadbury Dairy Milk: Featured a message “Give hugs at Christmas” which was inappropriately timed because of COVID-19 restrictions.

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➡️ The need for context-aware and timely messaging, especially during sensitive periods or global crises.

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• Zoella: Released an overpriced (£50) Advent calendar with low-value items (estimated to be around £20) and only 12 windows. It led to backlash and a subsequent price reduction.
• 
  

➡️ The importance of aligning product value with price, particularly for influencer-endorsed products, and responding swiftly to customer feedback.

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• Chanel: Sold a pricey (£610) Advent calendar with underwhelming contents like a keychain and a sticker book, criticised heavily by TikTok unboxers.

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➡️ Chanel’s advent calendar, while aesthetically pleasing, failed to meet customer expectations regarding content quality and value. Luxury pricing must be backed by luxury experiences, especially as customers are increasingly vocal on social media.

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The Dos and Don'ts of Advent Calendars

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The Do's
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• Align with brand identity: Ensure that the calendar reflects your brand’s values, aesthetics, and quality.
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• Curate thoughtful gifts: For physical calendars, select desirable items that resonate with your audience.
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• Embrace digital creativity: For virtual calendars, use engaging graphics, interactive elements, and exclusive content to keep users excited.
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• Promote sustainability: If opting for a physical calendar, consider eco-friendly materials and reusable designs.

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The Don'ts
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• Avoid overpricing: Make sure that the calendar’s price is justified by the value of its contents.
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• Don't neglect quality: Poorly made items or lacklustre digital content can damage your brand’s reputation.
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• Beware of unrealistic expectations: Don’t promise more than you can deliver. Honesty in marketing fosters trust.

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In summary, online and physical advent calendars are a creative holiday marketing strategy and an effective tool for businesses.

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They're not just about celebrating Christmas, they're about connecting with audiences in meaningful ways. Advent calendars offer brands a unique opportunity to engage with customers and to spruce up their Christmas marketing.

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Brands can create a great customer experience and build loyalty. They can do this by looking at past examples, aligning with their brand, and using digital platforms creatively.

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The surge in e-commerce growth has heightened the focus on environmental sustainability, especially on the impact of shipping. In 2020, the shipping and return of products were responsible for 37% of total greenhouse gas emissions.

Carbon-neutral shipping emerges as a vital solution in this context. Helping e-commerce brands reduce their environmental impact and meet the needs of eco-conscious consumers.

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Why eco-friendly logistics is not an option any more

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The shift towards green logistics is not just a trend but a necessity in the face of global environmental challenges.

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With the transportation sector responsible for 11% of the global CO₂ emissions, it's important for the rapidly growing e-commerce sector, projected to reach US$3,099.00 billion in revenue in 2023, to lead in sustainable practices.

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• 79% of UK shoppers are favourable to sustainable delivery methods and even willing to pay more for them.
• 49% are concerned with home delivery sustainability.
• About half of fashion consumers are calling for initiatives that reduce carbon footprints and promote eco-friendliness at checkout.
• 45% of UK shoppers expected fashion brands to commit to plastic-free products.
• 70% of surveyed customers are willing to wait 5 extra days for home deliveries in exchange for an environmental benefit.

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What is carbon neutral shipping?

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Carbon neutral shipping balances transportation's carbon emissions through various green measures, including renewable energy investments, tree planting, or eco-friendly projects. Understanding this approach is essential for both businesses and consumers, as it's a fundamental aspect of eco-responsible e-commerce practices.

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All in all, given the fact that carbon neutral shipping does not evade the initial emissions created from the shipping and handling of packages – it may seem that carbon neutral shipping doesn’t benefit the environment at all.

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While carbon neutral shipping cannot prevent the emissions created from the travel required for packages to reach their final destination, carbon neutral shipping is still beneficial to the environment – as it can help provide the financial support necessary to research and instil new sustainable methods that are vital in the fight against climate change.

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10 actionable tips to reduce carbon emissions from shipping

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Once the total carbon emissions have been calculated, the next step is to reduce those emissions as much as possible. 

Improving shipping efficiency is the most impactful way for e-commerce businesses to reduce emissions and manage the growing demands of delivery.

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Here are several actionable recommendations for sustainable shipping practices:

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1. Optimise route efficiency: Implementing advanced routing software can minimise travel distances and reduce fuel consumption. This includes selecting the most efficient routes and consolidating shipments to maximise load efficiency.
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2. Use energy-efficient vehicles: Transitioning to vehicles that use alternative fuels or electric vehicles can significantly lower emissions.
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3. Invest in carbon-offset projects: Investing in projects like reforestation or renewable energy can offset unavoidable emissions.
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4. Eco-friendly packaging: Use minimal, recyclable, or biodegradable packaging to reduce waste and carbon footprint associated with shipping.
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5. Local warehousing and fulfilment: Positioning products closer to the customer base reduces the distance for delivery.
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6. Utilise technology in inventory management: Adopt advanced systems to better predict product demand, helping to avoid excess stock and reduce unnecessary shipping.
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7. Encourage bulk purchases: Incentivising customers to buy multiple items at once can reduce the number of individual shipments.
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8. Offer flexible shipping options: Provide customers with a choice of eco-friendly shipping options, even if it means slower delivery times.
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9. Educate customers: Increase awareness among customers about the environmental impact of shipping and promote eco-friendly practices.
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10. Implement carbon accounting: Regularly measure and report on the carbon emissions from shipping activities to identify areas for improvement.

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By using these strategies in shipping, e-commerce brands can improve efficiency, reduce carbon footprint, and contribute to a sustainable future.

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Carbon neutral shipping options for e-commerce

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France:
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• Colissimo: Offers green delivery solutions, including carbon-neutral options.
• DHL France: Features the GoGreen service for eco-conscious shipping.
• FedEx France: Focuses on sustainable logistics with EarthSmart.

Spain:
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• Correos: Delivers an array of eco-friendly and carbon-neutral shipping services.
• SEUR: As part of DPDgroup, it provides green shipping solutions with Total Zero.
• UPS Spain: Supports businesses with environmentally responsible shipping options.

United Kingdom:
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• DPD UK: Integrates carbon-neutral shipping in its Green Delivery initiative.
• Royal Mail: Offers sustainable, carbon-conscious parcel delivery.
• UPS UK: Like Spain, offers green shipping solutions, including carbon-neutral options.

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Collaborate with green logistics providers

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Collaborating with green logistics providers offers long-term benefits for e-commerce businesses focused on sustainable growth and reducing environmental impact.

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These partners are experts in the supply chain, adept at implementing strategies that not only reduce carbon emissions but also save money in the long run. By integrating emission reduction tactics into your online shopping platform, you can improve profit margins while contributing positively to the environment.

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Also, it not only supports a healthy bottom line by reducing operational costs but also aligns with the growing consumer trend towards environmentally responsible brands. Integrating sustainable practices can enhance your brand's reputation and positively influence your growth rate.

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Their large-scale operations often mean better shipping rates, leading to cost savings. 

The advanced technology used by these partners ensures efficient route planning and inventory management, reducing both environmental impact and operational costs.

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Such partnerships offer the scalability and flexibility essential for growing e-commerce businesses. Green logistics providers can adjust to changing demands, freeing e-commerce companies to concentrate on their core activities without the added burden of logistics management.

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Collaborating with a green logistics provider equips e-commerce businesses with the necessary tools for adopting sustainable practices, offering a blend of expertise, cost-effectiveness, and efficient technology.

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Bigblue, the logistics partners you need

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Bigblue launched the “Collectif pour une Logistique Responsable” with partners like Hipli and Lizee, aiming to foster greener logistics through industry collaboration.

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We're committed to plastic-free packaging, using recyclable materials to meet the growing demand for eco-friendly solutions. In our quest for green logistics, we're also powering our data servers with 100% renewable energy.

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Additionally, we've developed an algorithm that selects the best packaging, reducing parcel size, cutting shipping costs, and lowering carbon emissions. It reduces packaging volume by an average of 22%. Our system notifies you of address errors, avoiding delivery mistakes and unnecessary return trips. We also optimised our TMS to create a carrier agnostic offer, finding the best options for delivery routes.

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Choosing us as your logistics partner is also joining our mission to work towards a more sustainable e-commerce.

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Conclusion

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In summary, carbon-neutral shipping is essential for e-commerce brands, aligning environmental responsibility with consumer expectations. 

It not only reduces the ecological impact but also enhances brand image and customer loyalty. As environmental concerns grow, adopting carbon-neutral methods positions e-commerce businesses as progressive and responsible, key for success in a competitive market.

Investing in carbon-neutral shipping is a crucial step for sustainable growth and maintaining relevance with eco-conscious consumers.

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The key to attracting and retaining customers lies in delivering exceptional customer experiences. With brand loyalty fading and alternatives readily available, e-commerce businesses must evolve beyond traditional customer service.

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Research from Hubspot indicates that a positive customer service experience leads to 93% of customers being inclined to make repeat purchases with a brand. Estimates suggest that the annual cost of bad customer service ranges from $75 billion to $1.6 trillion.

Customer support today is not limited to pre- or post-purchase. It now encompasses the entire journey, starting from the first contact and extending beyond the purchase.

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This article discusses how focusing on improving your customer support strategy and adjusting to their changing expectations can greatly benefit businesses in a competitive market.

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1. 3 reasons why you can't overlook customer service in e-commerce

1.1 Boost customer loyalty

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One of the key advantages of good customer service is that it boosts loyalty and helps in retaining clients over the long run. This will result in diminishing your costs and thus increase profitability.

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According to the Harvard Business Review, acquiring a new customer is anywhere from 5 to 25 times more expensive than retaining an existing one and if you increase customer retention rates by 5%, profits will increase anywhere from 25% to 95%

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Along with boosting customer loyalty, ensuring good customer support allows you to turn your existing customers into brand advocates with whom you’ll create special relationships and connections.

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A good tip for nurturing this relationship is, for example, to send a thank you email after each purchase. This will improve the customer experience and will help you reinforce the connection between your brand and them. Another way can be, to send small gifts alongside the products when your customers asked for a return in the first place.

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1.2 Sustainable growth

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Companies that provide positive experiences have better growth opportunities. Having clear and smooth customer support processes helps you to be proactive and avoid spending time dealing with and fixing problems. It allows you to focus your time and efforts on other areas of your business to drive growth.

Having a good customer support team that interacts with customers and collects their feedback (either positive or negative) also helps you to understand your customers, their needs, and their expectations. That feedback can be used to optimize your processes, improve your products to provide the right offers to your customers, and thus sustainably drive growth.

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1.3 Get positive reviews and enhance brand reputation

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Providing good customer service will help you get positive reviews from your current customers.

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Brightlocal’s research on customer reviews revealed that positive reviews make 68% of consumers more likely to use your products or services, and so it is a good way to enhance your brand reputation and stand out from your competitors.

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It will help you position your brand as one that puts customers at the centre of everything that you do and consequently gives you a competitive advantage to attract more leads, boost your sales and drive growth.

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Good customer service has many benefits. To make the most of it, you require a good strategy. This can be challenging, so we will give you some tips and factors to consider when designing your strategy.

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2. 4 tips to create the best customer service experience

2.1 Define “great customer service” for your business

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The first step is to clearly define what you mean by great customer service.

This includes the quality standards that your team has to follow in every interaction and situation possible. These standards differ from one type of business to another and each one has its unique one, but here are some ideas to help you create your own definition of great customer service:

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• The behaviour used while communicating with your customers. (tone, language, attitude)
• The maximum time accepted to answer your customers' queries or maybe real-time interactions.
• The level of proactivity that your team has to adopt.

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Defining these aspects will give a clearer idea of how your processes will work and set clear expectations with customers. A good example to illustrate this is the Customer Service Commitment that Southwest Airlines has created and shared with its clients.

Southwest Airlines has been named by Forbes as the best local airline company for its customer service in 2019.

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2.2 Focus on all your customer journey

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As I’ve mentioned earlier, a good customer strategy doesn’t only focus on the post-purchase part but on the whole journey.

So as e-commerce, you’ll need to understand each step of your customer experience and which are the problems that he may face in each one of them. 

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Being proactive is key to anticipating potential issues and crafting the best solutions to avoid them.

Understanding the scope of interactions that your clients have with you can help you determine which kind of support to offer at each step. 

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To illustrate, let’s imagine you have an online store for selling clothes, a great way to provide good customer support can be by adding size guides on each product page, this will help your customers make the best purchase decision.

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You can also add a chatbot to help them during the purchase consideration phase to better convert them later.

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2.3 Define your communications channels

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To define the best communication channels, you’ll need to find out which channels your customers are using. By analysing your data, you can figure out if your customers prefer to contact you by email, phone, or maybe social media.

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Based on these insights and your resources, you’ll be able to choose the right channels and tools to communicate with your customers. There are a lot of different channels that you can choose to use for your customer support, and here’s a small list of the channels you may want to consider while designing your strategy:
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• Email:

The most used channel for customer service alongside the phone. It is a good way to provide technical support, as it can be frustrating through other channels.

It also helps to get a record of the interaction. Not only that, but it is a good channel for non-urgent queries, as it sometimes takes a day to answer all the emails. The negative part of it is that impatient customers tend to switch channels as they tend to use another approach they feel is quicker.

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• Phone:

The most popular channel alongside emails. It is the most direct and fastest way to solve a problem, as it allows direct conversation in real-time. However, it can be time-consuming and not truly well suited for small teams with lots of queries.

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• FAQs and help centres:

This is a great way to be proactive while letting your customers solve their problems by themselves. It can also help answer common questions and find a solution to general problems fast.

The tricky part is that you need to make it easily accessible and well-organized so that your customers can find the answers to their queries effortlessly. It is cost-effective as you won’t have to spend much money on it, and it also helps scale your customer service and allows your team to focus on more specific queries.

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• Live chat (chatbot):

A good way to provide real-time support for your customers as they may have questions during their purchasing process. Although it helps in converting actual leads into customers who purchase your products, live chat also has one main challenge: being able to meet your customer expectations and answer them in a matter of seconds. The success of the live chat depends on how well your team is trained to quickly solve your customers' problems and convert them into buyers.

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• Social media:

Social media platforms have grown disruptively during the last few years and customers don’t use them for traditional customer service needs, they instead use them to praise or complain about your brand.

Knowing the powerful word of mouth that social media has, your brand needs to have your customer support team present on these platforms. They can spot these public complaints, quickly address them, and offer help to turn them into positive outcomes. It is also crucial to offer fast answers as 42% of customers who are complaining, expect an answer within 60 minutes on social media.

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These are the 5 most used channels today to provide support to customers, but that doesn’t mean that you have to choose only one of them or all of them. Based on your resources and your customer’s behaviour, you can adapt your strategy by selecting the most efficient channel.

2.4 Use helpdesk and other customer service software

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Running an e-commerce brand means using the appropriate tools, depending on your needs, such as Gorgias, Onepilot or Zendesk or CRM software.

They are great ways to manage all the customer-related data that you collect, whether it’s calls, search history on your website, or chat transcripts. 

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Centralising all your interactions​​’ data in one place and making it accessible to all your employees, enables them to be better advisors and be more effective in managing interactions with your customers and better guide them while solving their queries.

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Finally, every customer is different, nevertheless, they all share one specific trait: they all like to feel special and to be treated specially. So providing great customer service and putting the customer at the centre of everything you do, is essential to stand out from the crowd and to drive sustainable growth.

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In 2017, Rihanna started Fenty Beauty, changing the beauty game with a fantastic 40-shade foundation line-up (now 50!) that welcomed all skin tones. This bold step, along with their creative products and powerful social media presence, led Fenty Beauty to a staggering $72 million in just one month. It earned them awards like being named one of Time magazine's best inventions in 2017.

Even in a tough beauty market, Fenty Beauty's dedication to including everyone and celebrating diversity has created a new norm in the industry, making a lasting impact.

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1. Fenty Beauty: A clear and unique brand positioning

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With an annual revenue of $582 million, Fenty Beauty changed the beauty game by embracing diversity. Unlike many other brands, they launched with a wide range of 40 foundation shades, later expanding to 50.

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This commitment to inclusivity, inspired by Rihanna's own experiences, paid off, with Fenty Beauty's launch sales in the US skyrocketing fivefold and outperforming competitors. Their campaigns also featured models of diverse skin tones and were among the first to include men, making them a leader in the makeup industry for all.

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1.1 Transparency and commitment

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^{In 2020, Fenty Beauty pledged $1 million to support racial justice causes, including Black Lives Matter and the NAACP.} 

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Unlike many brands that posted brief tributes and returned to normal operations, Fenty Beauty stood in solidarity by stopping operating completely and consistently raising awareness of racial issues. This not only celebrated diversity but also underscored their product's inclusivity for all skin tones.

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1.2 Other commitments of Fenty Beauty

1. Sustainable packaging: Fenty Beauty has worked to minimise the environmental impact of its packaging by using recyclable materials and reducing the amount of packaging used. For example, the brand's Match Stix come in refillable packaging, which reduces waste.
   ‍
2. Vegan and cruelty-free products: All Fenty Beauty products are cruelty-free, meaning they are not tested on animals. In addition, many of the brand's products are vegan (not all of them), meaning they do not contain any animal-derived ingredients.
   ‍
3. Responsible ingredient sourcing: Fenty Beauty has committed to sourcing ingredients responsibly and ethically. The brand works to ensure that the ingredients used in its products are not linked to deforestation, habitat destruction, or human rights abuses.
   ‍
4. Environmental partnerships: Fenty Beauty has partnered with organisations such as the Climate, Community & Biodiversity Alliance and the Rainforest Alliance to support environmental conservation efforts.
   ‍

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2. Rihanna: The marketing queen

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2.1. A clean and tasteful visual identity

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Fenty Beauty's visual identity is modern and minimalistic, featuring clean lines and bold typography. Their packaging, with a sleek matte black finish and the iconic "F" logo resembling a makeup brush, exudes a luxurious appeal for consumers seeking high-end beauty products.

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Moreover, Fenty Beauty's advertising consistently features diverse models and influencers, representing various ethnicities, skin tones, and body types. This aligns with their commitment to inclusivity and diversity, creating a cohesive and effective visual identity that has contributed to their success in the competitive beauty industry.

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2.2. Strong social media presence and customer engagement

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Fenty Beauty has a very strong social media presence, with a highly committed and loyal following.

On Instagram, Fenty Beauty boasts over 12.8 million followers as of March 2024. Their engaging content mix includes product images, makeup tutorials, and user-generated posts. Notably, Fenty Beauty's Instagram engagement rate soars at 0.85%, surpassing the industry average, with an impressive average post-engagement rate of 1.38%.

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On TikTok, the brand has garnered 2.6 million followers and 52.4 million likes. Meanwhile, their YouTube channel has more than 911k subscribers and showcases makeup tutorials, behind-the-scenes clips, and interviews with Rihanna, accumulating over 146 million views to date.

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2.3 Influencer partnerships and user-generated content (UGC)

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Fenty Beauty has worked with a variety of influencers, including beauty bloggers and makeup artists, to promote its products. For example, the brand collaborated with beauty influencer Jackie Aina to launch a shade extension for its Pro Filt'r Foundation. The partnership generated significant buzz on social media and helped to expand the brand's reach.

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The brand's focus on UGC and influencer partnerships has helped to build a strong community of loyal fans and has contributed to its success in the competitive beauty industry.

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2.4 Rihanna's integral role in Fenty Beauty's marketing and brand image

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As the founder of the brand, she frequently uses her personal image and social media presence to promote Fenty Beauty and its products.

Here are some ways Rihanna uses her image and social networks to promote Fenty Beauty:

• In-person events: Rihanna has made appearances at various Fenty Beauty events, including product launches and pop-up shops. Her presence at these events helps to generate buzz and excitement for the brand. For example, Rihanna's Super Bowl performance wearing Salomon and a red jumpsuit, where she touched up her makeup with Fenty Beauty's Invisimatte Matifying Powder, generated $5.6 million in media impact value. This quick act not only promoted her brand but also showcased the product's effectiveness, leading to an 800% increase in Google searches.
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• Social media: Rihanna has a massive social media following, with over 152 million followers on Instagram as of March 2024. She frequently posts about Fenty Beauty products, using her images and videos to showcase the brand's offerings. Rihanna's posts often feature her wearing Fenty Beauty products, which helps to position the brand as a key part of her style.

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• Campaigns: Rihanna has been featured in several Fenty Beauty campaigns, including the brand's launch campaign in 2017. Her participation in these campaigns helps to build brand recognition and credibility.
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• Partnerships: Rihanna has partnered with other high-profile celebrities and influencers to promote Fenty Beauty products. For example, in 2021, she collaborated with rapper A$AP Rocky (BF and father of 1,5) on a campaign for the brand's new skincare line (Fenty Skin).

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3. Engaging and disruptive marketing campaigns

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Fenty Beauty has been known for its disruptive marketing campaigns that challenge the status quo in the beauty industry. Here are a few of the brand's most notable campaigns:

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3.1 The launch campaign

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Fenty Beauty's launch campaign in 2017 was a game-changer in the industry. The brand's focus on inclusivity and diversity was a refreshing change from the limited shade ranges many other beauty brands offer. The campaign featured a diverse range of models, including women of different races, ages, and sizes, and generated a lot of buzz on social media.

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3.2 Body Lava campaign

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Fenty Beauty's Body Lava campaign in 2018 was another standout moment for the brand. The campaign featured Rihanna herself applying the brand's shimmering body oil in a series of sultry videos that quickly went viral on social media. The campaign helped to cement Fenty Beauty's reputation as a brand that's not afraid to push boundaries and take risks.

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3.3 Flyliner campaign

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Fenty Beauty's Flyliner campaign in 2018 featured a diverse group of models showing off the brand's new liquid eyeliner. The Flyliner eyeliner, named "Cuz I'm Black" after Rihanna's iconic Twitter clapback, symbolises her unapologetic expression of Black identity and assertive social media presence, in line with the brand's empowering message.

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3.4 Gloss Bomb campaign

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Fenty Beauty's Gloss Bomb campaign in 2019 featured a diverse group of models and influencers showcasing the brand's popular lip gloss. The campaign's focus on inclusivity and diversity helped to reinforce the brand's message that beauty comes in all shapes, sizes, and shades.

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4. Global reach and strategic partnership 

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4.1 The Sephora partnership: A launchpad for Fenty Beauty's global domination

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Fenty Beauty's partnership with Sephora helped the brand achieve global reach. The brand is available in over 30 countries worldwide and has seen significant success in markets like the US, Canada, the UK, and Europe. According to NPD Group, Fenty Beauty was the top-selling prestige makeup brand in the US in 2018, with sales of over $500 million. The brand also expanded its reach by launching pop-up shops in major cities like London, Paris, and New York.

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Fenty Beauty's relationship with Sephora has been instrumental in the brand's success. Sephora was the exclusive launch partner for Fenty Beauty when it was first launched in 2017. The partnership provided Fenty Beauty with access to Sephora's extensive distribution network, which helped to increase the brand's visibility and reach.

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Stats about the collaboration:
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• According to NPD Group, Fenty Beauty was the top-selling brand in the U.S. prestige beauty market in 2018, just one year after its launch.
• Fenty Beauty's Pro Filt'r Soft Matte Longwear Foundation was the best-selling foundation at Sephora in 2018.
• Fenty Beauty's launch at Sephora generated $72 million in media value in its first month, according to Tribe Dynamics.
• In 2019, Fenty Beauty was named “Brand of the Year” at the WWD Beauty Inc Awards.

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4.2 Rihanna's Ambani wedding surprise: A strategic move for Fenty Beauty's India expansion?

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Rihanna's surprise appearance at Anant Ambani's pre-wedding event made waves worldwide. Fans of Fenty Beauty, myself included, wondered if her presence held a deeper significance.

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Fenty Beauty, valued at $2.8 billion, hasn't tapped into the lucrative Indian beauty market. Reliance Retail, owned by the Ambani family, recently acquired Sephora India, potentially offering a pathway for Fenty Beauty's entry.

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Rihanna's performance could be a strategic move to establish a connection with the Ambanis and facilitate Fenty Beauty's India debut, possibly through a partnership with Sephora India. Interestingly, Fenty Beauty didn't wait for an official announcement, launching on Nykaa's online store on March 7th.

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This series of events - the Ambani connection, the strategic performance, and the swift online launch - suggests a well-planned effort by Fenty Beauty to penetrate the Indian market. Was Rihanna's performance merely a dazzling show, or part of a calculated business strategy? Time will tell, but Fenty Beauty's actions indicate a serious intent to succeed in India.
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5. The Fenty effect
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Fenty Beauty's launch had a significant impact on the beauty industry, particularly in terms of promoting inclusivity and diversity. The brand's success has inspired other beauty companies to follow suit and expand their shade ranges to be more inclusive.

This is called the “Fenty effect”.
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From Kylie Cosmetics to Marc Jacobs, it seems like Rihanna might have shaken up the industry by catering to a market of people it has been ignoring for decades. Pop Sugar reported that since the launch, Sephora locations have seen more customers of colour than before.

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According to the Daily Dot, much of this advertising started after it was announced that the darker shade foundations of Fenty Beauty were running out.

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In the years since Fenty Beauty's launch, several other beauty brands have launched products with a wider shade range and marketed themselves as more inclusive. For example:
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• Huda Beauty expanded its shade range for its Faux Filter Foundation in 2018, following the launch of Fenty Beauty.
• Too Faced expanded its Born This Way Foundation shade range to include 35 shades in 2019, after facing criticism for its lack of inclusivity.
• Maybelline launched its SuperStay Full Coverage Foundation in 2018 with a shade range of 28 colours, which was expanded to 50 shades in 2019.
• CoverGirl launched its TruBlend Matte Made Foundation in 2018 with a shade range of 40 colours.

In conclusion, Fenty Beauty has contributed to the creation of a new standard in the cosmetics and beauty industry. It would now be unthinkable for a brand to launch without offering products that'd fit half of the world's population. Rihanna was the first to address this market in its entirety.