Partner Article

Fashion Brand REVOLVE Increases ROC with OrderDynamics

Dynamic Action also escalates sell-through of slow-moving inventory by 65% for REVOLVE’s sister company, FORWARD by Elyse Walker­­­

As an exponentially growing pure online retailer for more than 500 men’s and women’s most coveted brands, REVOLVE keeps a sharp eye on profitability and providing extraordinary customer service in order to ensure strong financial health. To continue to thrive in this ever competitive market, they were led to Dynamic Action, the first-of-its-kind Big Data and Decision Intelligence Application from OrderDynamics, to connect the “critical dots” such as: item level exposure, loyal customers’ return rates, competitive pricing and optimal inventory levels.

Dynamic Action identified $2 million opportunity in the first week

In a single week, Dynamic Action identified more than $2 million worth of inventory that had minimal exposure, receiving only a handful of customer views and resulting in overstocks and low sell through rates. Based on the recommendations of Dynamic Action, REVOLVE increased product views by 15% per week over a four-week period, resulting in:

A 20% increase in inventory sell-through for products with no recent sales

Nearly 60% improvement in return on capital (profit/cost of inventory) for overstocked products

FORWARD saw 65% improvement in sell-through of slow-moving inventory

FORWARD by Elyse Walker, also saw immediate opportunities for improvement with Dynamic Action. The software identified nearly $950,000 worth of inventory that was in stock, but was not receiving product views on the website. As a result, FORWARD sent targeted traffic to these products through internal and external channels, increasing inventory sell-through of these products by 65%.

“In the new reality of retail, it is critical to have connected systems and data to allow you to take action on organisational disconnects immediately,” said David Pujades, COO of REVOLVE and FORWARD. “With OrderDynamics’ Dynamic Action product, we’ve been able to shift even further towards managing by specificity to provide our customers with the best possible pricing and experience while running an increasingly profitable operation.”

“Dynamic Action allows us to better guide the business at a strategic level, while also providing us with key action items that must be addressed to keep growing the health and revenue of our organisation,” he concluded.

Dynamic Action is part of the full OrderDynamics product suite that helps retailers deliver seamless commerce experiences, with additional products that include a Commerce Platform, Stores – the In-Store Point of Service Application – and an omni-channel Order Management system. Read about all of the business growth REVOLVE and FORWARD experienced with connected and actionable data by downloading these full reports.

This was posted in Bdaily's Members' News section by OrderDynamics .