The Benefits of Simplifying Your Retail Retention Process

All too often brands are failing to check-in with their independent retail accounts to check-in on how their product is doing and if they can do anything to support the retailer. This is leading to brands losing out on valuable and predictable revenue. And while many brands are not closely monitoring their independent retail channel, there’s growing evidence that within an omni-channel brands portfolio, the independent channel is becoming vital. 

As of November of 2023, there were an estimated 2.7 million independent retailers within the United States along with an estimated $3.5 trillion in annual revenue. To put that into perspective, $3.5 trillion is 6x of Walmart and Amazon’s annual revenue for 2023 (respectively). Combine this with the fact that it’s more difficult than ever for brands selling DTC to acquire customers, since customer acquisition costs have increased 222% over the past eight years, the independent retail channel is becoming a must for any brand that is looking to drive profitable revenue. With products on shelves in store, brands need to be looking at this independent channel as not only a sales channel, but also a marketing channel to get more eyeballs on their brands. 

Getting into a retailer is a time consuming process to begin with. It usually involves prospecting, sending product samples and agreeing on an initial order size. This process can take months to play out. So once a brand finally gets into a new retail account, it behooves them to do everything in their power to stay in the retail account. So they not only help the product sell-through, but they have to make sure that the product is in stock. 

Without any reliable way for brands to tie into independent retailers, the best way to ensure that your products are on store shelves is to reach out to them and ask if they need a reorder. This process is very time consuming.  Today, most brands wait for a retailer to email them for a reorder and or don’t even bother to check-in with the retailer to see if they need a reorder. And not checking-in with a retailer is basically the same as throwing money out the window. 

Given the time consuming nature of the reorder process, streamlining this critical aspect of business can lead to substantial efficiencies across the board for the brand. Let’s dive into some of the major benefits that a brand that focuses on streamlining and automating the reorder process for their products in independent retailers will see: 

Saving Time 

One of the most significant benefits of simplifying and automating your reorders for independent retailers is the time saved. Traditional methods often involve lengthy email chains, sometimes exceeding 20 email exchanges, just to finalize a single reorder. This time-consuming process can be a major drain on resources and oftentimes includes a dedicated person on the brands team in charge of manually tracking and monitoring when independent retail accounts need a reorder.

“For context, we often hear brands say that the independent retail channel takes up 60% of their time and accounts for 15% of their business.”

By implementing a streamlined reorder system, brands can eliminate the need to chase accounts. This will help to free up the team's valuable time that can be redirected to other critical areas of the business such as trying to open up new accounts (which is a time consuming process to begin with) for example. 

Increasing Profits

While many DTC-first brands were focused on driving revenue, without any thought of driving profitable revenue a few years ago, that mantra has now been reversed. Brands of all sizes need to grow profitably. And automating and streamlining your retail reorder process will help you drive profitable revenue. A simplified reorder process directly impacts the bottom line in several ways:

• Reduced Labor Costs: When employees no longer need to manually chase down and input orders, the associated labor costs decrease. This allows for reallocation of those resources to more strategic initiatives.

• Minimized Errors: Manual processes are prone to errors—whether it’s an incorrect order quantity or a miscommunication about product specifications. An automated system ensures accuracy, meaning fewer costly mistakes and returns, which in turn protects your profit margins.

• Higher Sales Efficiency: A seamless ordering process encourages retailers to place orders more frequently and with greater ease, ultimately boosting sales volume and enhancing revenue streams.

Enhancing the Retailer Experience

Retailers, much like everyday consumers, are accustomed to the convenience of online shopping. Studies show that 90% of retailers want “DTC-style” experiences from the brands that they stock their stores with, emphasizing the importance for brands to meet these expectations. By simplifying the reorder process, you deliver a better, more efficient experience to your retailers, which can foster loyalty and repeat business. A user-friendly system that mirrors the ease of B2C e-commerce ensures that nothing slips through the cracks, creating a smoother, more reliable interaction.

Leveling the Playing Field

Both large and small brands benefit from implementing an automated retail reorder process. This not only helps you stand out from competitors but also positions your brand as innovative and responsive to retailer needs.

Automating the reorder process can help smaller brands compete more effectively with larger counterparts. When independent retailers have a seamless experience with your brand, they are more likely to remember you and prioritize your products over others - so it will not only help collect more reorders, but it will also help you drive more brand loyalty and be more memorable in the eyes of the retailer. 

Simplifying B2B reorders is a strategic move that offers numerous advantages for brands of all sizes. From saving time and reducing costs to increasing profits and delivering superior retailer experiences, the benefits are clear. By embracing automation and streamlining your retail retention process, you can stay ahead of the competition and build stronger, more profitable relationships with independent retailers. Whether you’re a large enterprise or a growing brand, the time to simplify is now so you can stay ahead of your competition. 

If you are interested in simplifying your independent retail reorder process, set-up time to chat with us.