How Ruggable Leveraged Unified Commerce to Save Time and Costs in Expanding Internationally

Table of Contents

1. Key Highlights
2. Introduction
3. The Operational Challenge of Going Global
4. Streamlining Operations with Unified Commerce
5. Mastering Localization for Diverse Markets
6. Avoiding Pitfalls of Store Fragmentation
7. Looking Ahead: Future Opportunities with Shopify
8. FAQ

Key Highlights

• Ruggable implemented a unified commerce strategy using Shopify Payments, which significantly streamlined operations and reduced overhead costs.
• The company saved over $250,000 annually by launching their Canadian entity instead of creating a new Shopify store.
• By adopting Multi-Entity management, Ruggable minimized manual catalog changes and reduced operational workload significantly.
• The integration enabled easier localization of products and payments, enhancing customer experience across international markets.

Introduction

In the rapidly evolving realm of eCommerce, companies face mounting pressures to optimize operations while expanding their international footprint. One company navigating these waters is Ruggable, a U.S.-based brand specializing in machine-washable rugs and home design products. As the brand attempts to broaden its horizons, it has dedicated considerable resources toward improving its operational efficiency. A remarkable statistic reveals that Ruggable not only saved an impressive $250,000 in annual costs but also reclaimed 5,980 hours per year by implementing a unified commerce strategy through Shopify Payments. This article explores Ruggable's journey in overcoming complex operational hurdles while positioning itself for sustainable growth in international markets.

The Operational Challenge of Going Global

Historically, eCommerce businesses launching international ventures faced challenges that often revolved around managing multiple storefronts, operational redundancies, and increased overhead costs. Ruggable's previous approach involved setting up individual Shopify stores for each international market, a strategy that initially seemed promising but quickly became cumbersome.

Dylan Feiner, Ruggable's Senior Product Manager, noted that each additional store created significant complexities. The brand's operational framework required frequent catalog updates and adjustments, often leading to manual errors and miscommunication. Feiner described the daunting nature of syncing catalog information across six stores, where even minor changes could take “hours of work on a weekly basis.”

This legacy model strained both the budget and team productivity, hampering Ruggable's ability to effectively service its growing customer base abroad—particularly as international sales emerged as a crucial growth lever.

Streamlining Operations with Unified Commerce

Recognizing the need for a more efficient system, Ruggable explored Shopify’s unified commerce solutions, particularly the Markets and Multi-Entity management features. Markets enabled the brand to aggregate various international operations into one centralized system, allowing for seamless updates to product catalogs, localized content, and checkout experiences.

By transitioning to this unified commerce model for their Canadian launch, Ruggable achieved several significant benefits:

1. Operational Cost Savings:

   • The implementation led to savings of over $55,000 in annual third-party operational costs.
   • The elimination of redundant operational tasks saved Ruggable approximately 330 hours of initial project work, along with around 115 hours per week—translating to nearly 6,000 hours annually.

2. Enhanced User Experience:

   • The Markets feature allowed Ruggable to offer tailored shopping experiences, including local product catalogs, currencies, and even site translations.
   • This flexibility enabled swift adjustments in the online storefront based on customer location, enhancing usability for a multicultural customer base.

3. Localized Payment Options:

   • Ruggable’s adoption of Shopify Payments facilitated the inclusion of preferred local payment methods, improving customer satisfaction. As Feiner highlighted, understanding regional preferences is vital; for instance, iDEAL is popular among Dutch consumers.

Mastering Localization for Diverse Markets

One of the apparent advantages of using the Markets feature in Shopify was Ruggable's newfound capability to localize product offerings effectively. During the Canadian launch, Ruggable leveraged Shopify’s Translate & Adapt app to customize product pages and recommendations to suit both language and cultural nuances.

“We could turn on a store and sell products in local currency but have the content in English,” Feiner noted, emphasizing the various levels of localization available. With contextual storefronts, Ruggable not only delivered localized content but also tailored marketing strategies that resonated with different demographics.

The ability to showcase customized banners—such as highlighting localized reviews or value propositions—demonstrated the brand's commitment to personalized customer interactions, thus reducing the likelihood of a disconnected shopping experience.

Avoiding Pitfalls of Store Fragmentation

Maintaining separate stores for international markets often becomes a logistical nightmare, as Ruggable experienced firsthand. Feiner pointed out that managing unique product IDs and customer accounts across different stores can lead to chaotic operational processes and potential loss of customer loyalty.

Ruggable’s adoption of Multi-Entity management essentially eliminated the need for intricate transitions. This system allowed the brand to operate from a single admin interface while still managing regional payment accounts and product offerings. As a result, they avoided the time-consuming complications associated with setting up an entirely new store, such as negotiating new contracts with third-party apps or losing valuable order data.

Brand integrity remained intact, and operational chaos took a backseat to growth strategy.

Looking Ahead: Future Opportunities with Shopify

As Ruggable continues its foray into additional markets—namely New Zealand, as mentioned by Feiner—the advantages gleaned from the unified commerce solutions will play a crucial role. The Multi-Entity management will allow Ruggable to expand operations effectively without the added complexities of launching from scratch.

Feiner's reflections on Shopify’s services highlight the importance of partnership—prompt and helpful support has been vital in implementing new strategies smoothly. “They catered to our needs, answered a ton of questions, and were very supportive,” he concluded.

The Broader Implications for eCommerce

The success Ruggable has achieved through its transition offers vital lessons for other brands navigating international expansions. Different companies, whether starting from scratch or looking to scale their existing operations, can glean insights from Ruggable’s journey. The key takeaways include:

• A unified commerce strategy can substantially enhance operational efficiency and reduce costs.
• Taking advantage of localized content and payment options can improve customer satisfaction across regions.
• Maintaining coherent customer data and workflows is critical for brand integrity during expansion.

FAQ

What is a unified commerce strategy?

A unified commerce strategy integrates multiple sales channels and operational functions into a single platform. This approach allows businesses to streamline processes, improve inventory management, and offer a cohesive shopping experience across all touchpoints.

How did Ruggable save on operational costs?

Ruggable's use of Shopify Payments and unified commerce solutions helped eliminate the need for multiple store setups, reducing labor costs associated with catalog updates, customer account management, and third-party operational fees.

What are the benefits of using Shopify’s Multi-Entity management?

Multi-Entity management enables businesses to operate multiple regional stores from a single administrative framework, simplifying updates, management of payment accounts, and metadata synchronization, while reducing the risk of errors stemming from fragmented operations.

How crucial is localization for international eCommerce?

Localization is essential in eCommerce, especially when expanding into new markets. It not only relates to language but also encompasses regional preferences in products, payment methods, and customer service, which collectively contribute to an improved customer experience.

What role does market research play in international expansion?

Conducting thorough market research helps identify customer preferences, local competitors, and regulatory requirements, which are vital for tailoring marketing strategies and product offerings accordingly.

Can Ruggable expand to other markets efficiently after its success in Canada?

Yes, Ruggable plans to leverage its unified commerce infrastructure to expand further into other markets, such as New Zealand, which demonstrates its ability to effectively adapt without the added complexities of separate store launches.

Ruggable's operational transformation serves as a pertinent case study for brands aiming for international success in today's intricate eCommerce landscape. With an aggressive growth strategy reinforced by Shopify's integrated solutions, Ruggable continues to exemplify resilience and innovation.