1P Fulfillment Strategy, High volume inventory Fulfillment, Online product fulfillment

From 3P to a Pivotal 1P Partner: High-Volume Inventory Backstop

David Arndt, Author David F Arndt, David Arndt Content Marketing Manager
David Arndt Content Marketing Manager

CPG.IO quickly stepped in to be a crucial warehouse inventory backstop and 1P drop shipping partner.

In 2015, O-Cedar originally partnered with CPG.IO, their goal was to develop an omni-channel presence and provide them with a clear growth strategy to build and promote their product’s presence online.

When O-Cedar wanted to expand into 3P Selling on Amazon to sell their cleaning supplies, they were entering a very crowded niche with other major brands already established on the platform

Our work included account management, product & pricing analysis, content optimization, ad management,3P fulfillment, and cementing their presence on the largest online retailers including Amazon Seller Central, Wal-Mart, Target, and a dozen other sales channels.

As our relationship with O-Cedar began, CPG.IO played a pivotal role as their 3P partner that created and optimized their presence on multiple sales channels with crucial forecasting, account management, SKU & velocity analysis that provided crucial market data to determine market fit, content, and expertise to optimize their sales and fulfillment processes.

With CPG.IO, the insights and experience gained played an enormous part in overwhelming sales volume through Seller Central that would directly correlate to their future success in 1P through Vendor Central.

A Revolution for O-Cedar

When the O-Cedar Easywring Mop was introduced, it was a massive hit that took the cleaning world by storm, but that was just the beginning, just a year later, the ProMist MAX Spray Mop was introduced and the perfect counterpart that would propel their sales even higher.

Previously, O-Cedar’s primary products consisted of polishes and waxes however, their broom and mop sales quickly surpassed the sales of the polishes and waxes, and O-Cedar never looked back and has been producing easy-to-use cleaning products ever since.

CPG.IO directly assisted with bringing the Easywring Mop to market across all platforms with 3P 

to establish product-market fit and optimize the images, content, and brand efforts across all sales channels.

Challenges With O-Cedar’s 1P Processes

As their sales begin to explode, O-Cedar became a regarded 1P partner with Amazon supplying them with large POs however, Amazon was slow to recognize the high volume of sales, and inconsistent purchases orders ultimately left Vendor Central running out of inventory at crucial times as sales lit up and stayed burning. 

Challenges of Scaling 

Even the largest CPGs that fulfill their own 1P and B2B orders support business-to-consumer sales and one-off orders and struggle to fulfill individual orders with Amazon. When selling on amazon, timely delivery is crucial.

Challenges From Counterfeiters 

With the popularity of O-Cedar mops and refill packs, came counterfeiters trying to muscle their way into market share by siphoning sales along with the very real possibility that they could tarnish O-Cedar’s reputation.

CPG.IO actively monitors and is instrumental in keeping counterfeiters away which can dilute their market share.

The Pivot to Being a Crucial 1P Partner.

When O-Cedar recognized the need for a reliable inventory backstop partner that could directly dropship and fulfill products to customers with orders placed through Vendor Central, CPG.IO, who was already handling their 3P marketing and fulfillment, became a seamless extension of their 1P efforts.

By creating a sub-vendor account and becoming a Vendor of Record for O-Cedar, we were there to ensure that inventory availability through 1P so sales momentum wouldn’t be lost through a lack of inventory again.

As a sub-vendor, the O-Cedar products that left our warehouse to fill inventory deficiencies in Vendor Central still carried the crucial label ‘sold and fulfilled through Amazon.”

Complementing O-Cedar’s Sales & Advertising Efforts

CPG.IO became an invaluable extension of O-Cedar by purchasing and frontloading inventory to support their TV, radio, and other advertising efforts to support their sales campaigns across different marketing channels.

Doing this ensured that there was plenty of inventory to meet demand and we became a valuable backstop partner across all of their 1P and 3P efforts.

How Did O-Cedar’s Sales Scale so Rapidly?

Amazon ads, social media, word-of-mouth advertising, and the perfect storm of promotions by bloggers, and industry professionals propelled their product to the #1 mop in sales volume from 2017 to 2018.

Follow-on Success

With massive volume across channels, CPG.IOs fulfillment processes didn’t miss a beat, and with a clear growth strategy that incorporated engaging content combined with well-timed, and placed Amazon Ads, unique, and engaging content, we propelled their 3P sales even higher.

Sales of O-Cedar products remain as strong as ever with an average of 3 thousand sales a week.

Making Every Sales Channel a Profitable One 

The flexibility of a 1P and 3P Hybrid Approach to Selling on Amazon

CPG.IO gives brands the flexibility of a 1P and 3P Hybrid Approach to Selling on Amazon that optimizes every aspect of the customer and product journey for D2Cs through forecasting, content strategy, coordinated logistics efforts, timely/speedy fulfillment, and results-driven marketing campaigns.

Whether you sell through Vendor or Seller Central, you need a dedicated marketing, advertising, and distribution team that gives your brand everything it needs to succeed, all under one roof.

Contact CPG.IO today to learn how we list, optimize & fulfill your new and existing products better to help you earn more, and sell more online.

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