More sales channels equal more customers. It is a simple formula that Spreetail has employed since getting our start in 2006. New channels give Spreetail’s brand partners the opportunity to get in front of unique audiences and compete in a diversified ecommerce landscape. In 2021, Spreetail launched partnerships with five new sales channels: Best Buy, Kohl’s, Kroger, Overstock, and Sears, while also introducing the New Channel Acceleration initiative to expedite growth and ultimately drive successful long-term partnerships.
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“The top reason brands choose Spreetail is to diversify their online presence, and Spreetail’s aggressive sales goals rely on onboarding top notch new brands. For this reason, the New Business team is focused on building partnerships with the channels and platforms that are most valuable to our brands. Additionally, we want to make sure that these channels are set up for success with rich content, robust catalogs, and automated operations so that our Channel Managers can focus on strategies that drive long-term growth,” said Margeaux Oswald, Sr. Manager of New Business.
Spreetail’s first new channel partnership of 2021 was with Best Buy, which launched in January. Brands in the Pool & Spa category saw early success on the channel, quickly ramping to capture sales over their Spring/ Summer peak season. Category expansion contributed to further channel growth as brands in the Outdoor Recreation, Tools, and Storage & Organization categories gained traction.
April 2021 marked the beginning of our partnership with Kohl’s. Kohl’s has recently seen breakout success from brands that sell within the Home & Garden category. We hit our stride in October and saw sales on Kohl’s significantly increase. The growth continued into November, performing well over the holiday season. Spreetail now claims the title of the largest seller on Kohl’s.
Spreetail’s third channel launch of 2021 was Kroger, one of the nation’s top grocery retailers. We expect sales on Kroger to slowly gain momentum as the marketplace works to shift customer behavior from purchasing mainly groceries on Kroger, to purchasing a wider variety of products (including durable goods, which Spreetail specializes in).
Sears launched in November 2021. We experienced a seamless integration thanks to our close partnership with Sears and strategic planning by our software team. Sears functions as an open marketplace with a Buy Box. We quickly ramped up and as of December 2021, Spreetail already had over 5,000 listings live with a Buy Box win rate over 80%.
Spreetail also launched our channel partnership with Overstock in late November and we captured our first sales over the Cyber 5 period (Thanksgiving – Cyber Monday). We are working to grow our active listings on Overstock, which will soon feature over 2000 items from Spreetail’s brand partners.
Five new channel launches weren’t the only priority for Spreetail’s New Business team in 2021. Over the summer, the team kicked off a strategic initiative to accelerate the growth of newly launched channels. The program focuses resources on revenue-driving KPIs and provides additional support for operational milestones. Our goal in 2022 is to graduate all new channels in less than 100 days.
“Our purpose as a New Business team is to extend our capabilities and assets to new distribution channels, creating value for our Vendors and Channels” said Erik Minter, Sr. Director of New Business. “We understand that Channel expansion is the number one reason why Vendors choose to partner with Spreetail and we’re dedicated to delighting our customer’s customer wherever one chooses to shop online.”
Spreetail is an ecommerce growth partner focused on accelerating brands and channels to compete for tomorrow’s ecommerce customer. Our ecommerce experts purchase products from world-class vendors, list these top brands on marketplace giants such as Amazon, Walmart, Target, and eBay, and fulfill orders with next-day speed. Our completely home-grown software helps us provide unmatched value to our vendor partners, channel partners, and the millions of customers we delight nationwide.
