5kind

Discover how 5kind scales up sustainably, achieving a remarkable 12% reduction in operating costs through strategic integration with Amazon MCF by WebBee.

Industry

Online Retail

Features Used

2 way Sync
Amazon FBA marketplace & multi-channel fulfillment
Auto Inventory Sync by enabling inventory buffer
Automatic Orders & Customer Data Sync

Technology Used

Amazon MCF Integrations

Country

About
5kind

The beauty and personal care industry is experiencing a surge in popularity, with an anticipated revenue of US$579.20 billion in 2023 and a projected compound annual growth rate (CAGR) of 3.53% over the next five years. Among the diverse range of self-care products in this market, a significant number of consumers are gravitating towards those crafted with natural or organic ingredients. Specifically, more than 65% of consumers are actively seeking environmentally friendly brands, and 55% are willing to invest more in sustainable products. 

Capitalizing on this growing trend, Guy Burt, the founder of 5kind, identified an opportunity. Burt was in search of a chemical-free lotion for post-exercise use, devoid of substances like parabens, sulphates, mineral oils, or petrolatum. When he couldn't find a suitable product, he founded 5kind to address this gap in the market.

5kind is a clinical skincare brand with a mission that's as clear as its name: to be kind to your skin, to yourself, and to the planet. They've carved their niche by formulating potent yet gentle products that tap into the power of nature.

Vision and Goals

5kind isn't just a skincare brand; it's a vision brought to life. At its core lies a deep commitment to nurturing natural beauty while nurturing the planet. This philosophy permeates every facet of their operation, from product development to packaging and beyond.

5kind envisions a world where beautiful, healthy skin goes hand-in-hand with environmental responsibility and ethical practices. They aspire to be the leading advocate for sustainable skincare, proving that kindness to ourselves can blossom into kindness for the Earth. Now, let's explore the additional Goals of the company below 

Global Expansion

With a commitment to making quality skincare accessible to individuals worldwide, 5kind aims to expand its market presence across diverse continents and regions.

Product Innovation

As a pioneer in skincare, 5kind is dedicated to continuous research and development, striving to introduce innovative formulations that address evolving consumer needs and preferences.

Sustainability Leadership

Recognizing the importance of environmental responsibility, 5kind has set goals to minimize its ecological footprint. This includes sustainable sourcing, eco-friendly packaging, and fostering a culture of conscious consumption.

Customer-Centric Approach

5kind aspires to build lasting connections with its customers by prioritizing their needs and preferences. The goal is to create an engaged and loyal community that trusts 5kind as a reliable partner in their skincare journey.

Operational Excellence

Streamlining global operations is a crucial objective for 5kind. The brand seeks to enhance efficiency, reduce costs, and improve overall supply chain management through strategic initiatives like the adoption of a single 3PL.

Integration Features

5kind Partnership with Amazon MCF by WebBee!

Burt came across Amazon Multi-Channel Fulfillment (MCF), a third-party logistics (3PL) service that ensures swift and dependable order fulfilment for channels outside of Amazon. MCF provides numerous advantages, including a straightforward setup, catering to sellers like Burt. Remarkably, sellers on Amazon in the United States utilizing both MCF and FBA for order fulfilment have experienced an average 38% boost in their sales revenue on Amazon.com. Similarly, sellers on Amazon in the United Kingdom have seen an average increase of 29% in their sales revenue on Amazon.co.uk when leveraging both MCF and FBA.Burt was confident that MCF was the ideal third-party logistics (3PL) partner for his business due to the following reasons:

Efficient and Dependable Delivery Service

MCF consistently brings joy to customers with delivery punctuality exceeding 97% in the US and a global "click-to-door speed" of 1.9 days – a pace over 50% swifter than that of other retailers.

A Connected, Worldwide Network

E-commerce enterprises can tap into the extensive fulfilment network, comprising over 200 fulfilment centres, by utilizing MCF (Multi-Channel Fulfillment)

A Single Inventory Pool

Amazon merchants have the option to use their inventory stored on Amazon.com to fulfil orders placed both on the Amazon platform (using FBA) and on external channels outside of Amazon (utilizing MCF

Cutting-edge E-commerce Integrations

With over 100 integrations available, MCF enables merchants to streamline and automate their order fulfilment procedures.

5kind uses integration with e-commerce solution provider Amazon MCF by WebBee to seamlessly connect MCF with its backend system on Shopify, where the company not only hosts its brand website but also feeds in orders placed on other channels. Now, when an order is placed on any of 5kind's online sales channels, it is routed to MCF for fulfilment. Integrating with MCF also ensures tracking information is automatically sent from MCF to Shopify to keep customers informed of their delivery status. With an average of 700 orders a month, Burt no longer needs to submit orders manually and can focus on other aspects of his business, like product development and marketing

Regardless of the order placement location, our entire order process integrates seamlessly into our Shopify backend system. The straightforward connection of MCF to Shopify through WebBee has made our order fulfilment entirely automated. We no longer grapple with the complexities of handling multiple apps and ensuring their communication. Our workflow has become remarkably straightforward and efficient.

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5kind
Challenges

Addressing Challenges

This small business, producing its goods in Europe, initially entered the market by selling on Amazon.com. Following its initial achievements, Burt and his team made the strategic decision to not only broaden their range of products but also to venture into additional online sales platforms and target new international markets. As the company expanded, Burt and the 5kind team collaborated with multiple third-party logistics (3PL) providers to handle the logistical aspects of the business, including inventory management, order fulfilment, and shipping. However, dealing with multiple 3PLs and overseeing diverse stock pools across Europe became intricate, leading to challenges such as the company experienced problems with its 3PL providers failing to fulfil orders. Burt quickly recognized the necessity of streamlining his business operations by collaborating with a single 3PL provider capable of scaling with 5kind while also providing:

Lightning-quick Delivery for Customers

To ensure swift order fulfillment and reduce Customs delays, 5kind required a third-party logistics (3PL) partner with a fulfillment network covering both Europe and the United States.

Streamlined Inventory Management

As 5kind extended its reach to different regions, managing inventory levels emerged as a significant challenge for Burt's business. He sought assistance in streamlining inventory consolidation to simplify the processes of forecasting and order management.

Multi-channel Fulfillment Capabilities

5kind was in search of a third-party logistics (3PL) provider equipped with the necessary infrastructure and personnel to manage order fulfillment for its current sales channels. Additionally, they required a partner with the capability to scale operations if the decision was made to extend into new channels down the line.

We aimed to expand our footprint across Europe, but we were cautious about complicating our supply chain. Our priority was finding a third-party logistics (3PL) provider capable of easing the complexities of our operations, minimizing the risk of supply chain disruptions during peak seasons, and simplifying our overall business management. Recognizing that transitioning to a new 3PL would have significant implications for our business operations, it was a substantial decision," Burt elaborated.

The
Transformation

From Challenges to Success

Leveraging the assistance of MCF, 5kind has undergone a remarkable evolution into a genuinely international enterprise, marketing its skincare products in 9 countries through 5 distinct online sales channels. Since integrating MCF into its operations in 2020, Burt has observed noteworthy enhancements, such as:

Streamlining Operations for Increased Efficiency

5kind simplified its inventory management through MCF, as the company could centralize its stock into one unified pool. The process involves sending the inventory to Amazon, where the products are automatically dispersed across the Amazon fulfilment network using Pan-European FBA.

Enhanced Customer Satisfaction

Leveraging MCF (Managed Fulfillment Services), 5kind excels in providing customers with a remarkable average click-to-delivery speed of 1.06 business days and an impressive on-time delivery rate of 99.85%

Substantial Expense Reductions

Through the implementation of MCF (Merchant Fulfillment Network), 5kind has successfully cut operating expenses by 12%, sidestepping cross-border fees and the operational expenditures linked to overseeing various stock locations.

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