Red’s Gear (Jet case study)Seeing Sales Take Off on Jet

Company Overview

For more than 20 years, Red’s Gear has provided outdoor enthusiasts with brand name sporting goods at affordable prices. The company’s mission is to equip hunters, anglers, archers and outdoor fanatics for the ultimate outdoor experience. By providing the latest products throughout every category, from camping gear to fitness equipment, Red’s Gear has something to offer for every outdoor adventurist. Only six years ago, Red’s Gear launched its online presence by selling closeout inventory on eBay and now is one of the most reputable online sporting goods sellers across multiple marketplaces.

The Situation

  • Recognized the value of Jet’s business model
  • Saw an opportunity to grow sales and decided to sell on Jet

Red’s Gear has no shortage of marketplaces experience. The company uses ChannelAdvisor to sell on 10 marketplaces, including Amazon, Best Buy, eBay, Newegg, Sears and more. In the fall of 2014, Red’s Gear’s ChannelAdvisor account manager gave Red’s Gear Vice President of Marketing Eric Wohlstadter a heads up about a new marketplace that would soon burst onto the scene.

After speaking with ChannelAdvisor about Jet and looking into its business model, Red’s Gear decided the marketplace would be a good opportunity to grow its online sales.

“Our ChannelAdvisor services representative let us know about Jet shortly before it started getting tons of attention,” said Wohlstadter. “I was familiar with Marc Lore and his work with Quidsi and Diapers.com, and the business model caught my eye. I thought it would provide something unique in today’s price-sensitive shopping age.”

The Solution

  • ChannelAdvisor Marketplaces to enter Jet’s beta program and start selling on the marketplace on the day of its launch

In January 2015, ChannelAdvisor announced that it would be integrating with Jet to help customers reach more sources of demand. Red’s Gear quickly took advantage of the opportunity to enter Jet’s beta program. Using ChannelAdvisor Marketplaces, Red’s Gear was able to list its products on Jet in time for the marketplace’s official public launch. The process was smooth sailing.

“ChannelAdvisor was instrumental because of the simplicity and efficiency of using its platform to sell on marketplaces,” said Wohlstadter. “We didn’t have any issues getting set up on Jet. Overall, it was incredibly easy.”

Jet’s dynamic pricing structure — that selects merchants for consumer orders based on location, price and other details — has helped Red’s Gear add margin to its orders.

“Jet enables us to price around the shipping differences based on location of the consumer, and we can be more competitive on things we know we can make money on. It really helps with the costs of doing business.”

The Results

  • Grew Jet sales over 900% from the time it was in beta to the site’s public launch
  • Saw Jet become its number three marketplace by GMV in just two months
  • Increased Jet sales nearly 60% in a rolling 30-day period

So far, Jet’s unique e-commerce approach has greatly benefited Red’s Gear. Jet has quickly climbed the ranks of marketplaces that are returning the most profit for the company.

“It’s already our third marketplace in terms of GMV behind only Amazon and eBay. In a rolling 30-day period, we’re growing approximately 60%. It’s trending to remain at that pace, and I would expect it to only pick up more traction,” said Wolhstadter.

Jet has also helped Red’s Gear build its brand awareness and reach new shoppers that previously never purchased from the company. “We’re reaching new customers that didn’t exist before. I would say the consumers buying our products on Jet are approximately 75% new customers.”

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