How Fulfillment Technology Can Drive Average Order Volume – WWD

While beauty Inc @ 20, Donny Salazar, Founder and Chief Executive Officer of Fulfillment technology and service company MasonHub hosted a workshop session to help brands increase conversions, margins and average order volume through better use of omnichannel fulfillment processes.

Salazar explained how his platform connects with e-commerce providers and why brands should consider a “scaling strategy” for selling online. He also gave insights on how to maximize the pandemic online shopping boom beauty Brands this year and beyond. Salazar also explained what his team (and the technology they developed) from others in the market. (Note: He is a seasoned businessman who knows the weak points of direct selling well.)

“We help brands by focusing on scaling, which really means helping brands move into multiple channels,” said Salazar. “It’s not just e-commerce and not just wholesale, it’s widespread and requires inventory management to be managed through all of these unique and different channels.” This approach is based on a fulfillment technology that includes customization and testing functions, as well as transparent inventory views offers fully managed returns.

Salazar not only uses fulfillment technology to increase scale across all channels, but works with beauty brands to “bundle” products. As an example, he cited a brand with 35 or 40 storage units, but was able to bundle products in more than 600 combinations. The result is not only higher average order volume, but also lower costs as more items are shipped to a single buyer. For the customer, the value proposition makes selling easy.

“With bundling [technology], you can also put together product combinations that anticipate your customers’ needs, ”he said. “The other nice thing about this technology is that you can create as many different combinations as you want at the same time. And you can actually test what works best. “

Salazar discussed the benefits of drop shipping inventory from brands by ordering online from retailers like Sephora and Nordstrom and even Amazon – all done through MasonHub.

Donny Salazar

Donny Salazar during the Beauty Inc @ 20 workshop.
Courtesy image.

Independently of the workshop, Salazar shared insights into the second half of the year and the challenges and opportunities that brands are faced with. Even if vaccines are introduced and mask requirements are dropped, there are disruptions in the supply chain that are likely to continue.

“A big thing for the second half of 2021 is to continue to expect disruptions across the supply chain,” said Salazar. “The uncertainty caused by the pandemic makes it difficult for suppliers to predict demand, and because of this, we have seen large fluctuations in supply and production. There was also a bullwhip effect from the pandemic, which is still causing production delays because it is becoming increasingly difficult to get raw materials. “

Salazar said brands need to plan as much as possible “to get products asap and have a backup plan or you’ll miss your fourth quarter numbers”.

“Apart from that, big airlines [FedEx, UPS, DHL] still have over 100 percent capacity and I don’t expect this to go away anytime soon, ”he said. “Shippers must take the time to expand their capacity to handle the explosive growth of e-commerce, so expect persistent shipping disruptions and delays in the meantime. The good news is that we are making progress in overcoming the pandemic, but the supply chain has yet to keep up. “

Salazar also said that as more people return to in-person shopping and in-store, “retailers and brands need to make sure they are populating all of their channels properly. That means you have to make sure you have enough resources to supply your e-commerce, brick and mortar and wholesale channels: people, marketing money, technology, operations. “