Red’s GearGearing Up to Tackle New Online Challenges

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

Soon after its initial eBay endeavor, Red’s Gear recognized the e-commerce potential for its business and implemented a multichannel approach to maximize online visibility. Advertising across more than 10 channels, Red’s Gear decided to launch on Newegg Marketplace in August of 2011. As a result of the channel additions, Red’s Gear realized that managing inventory and
sales across these various sites was a major challenge. The sporting goods company needed an e-commerce solution that could help it capitalize on all of its marketplaces.

Red’s Gear implemented ChannelAdvisor Marketplaces to simplify overall business processes, especially to improve its Newegg integration and performance.

“After selling on Newegg Marketplace, we quickly realized that we needed a solution to increase efficiency and better manage operations,” said Red’s Gear Vice President of Marketing Eric Wohlstadter. “ChannelAdvisor Marketplaces was the perfect fit in order for us to best execute our marketplace strategy.”

The Solution

Working with both ChannelAdvisor and Newegg allowed Red’s Gear to optimally tap into Newegg’s customer base and expand sales. Newegg’s niche customer base was a great fit for Red’s Gear extensive sporting goods selection. Red’s Gear was able to utilize ChannelAdvisor’s software to meet growing demands by adding new product listings, automating daily tasks, and ensuring that their inventory was priced competitively on the marketplace. Likewise, Newegg provided one-on-one customer service to get Red’s Gear business ramped up and continuously maintained.

“Red’s Gear easily integrated with us and fit right into our marketplace community,” said Sophia Tsao, head of Newegg Marketplace. “Working hand-in-hand with both Red’s Gear and ChannelAdvisor produced excellent results and will continue to do so, going forward.”

The Results

Newegg soon became one of the largest revenue drivers for Red’s Gear, growing sales nearly 1800% with ChannelAdvisor Marketplaces in 2012. Through ChannelAdvisor’s Newegg integration, Red’s Gear was able to properly manage its large volume of orders from one central dashboard. Red’s Gear was empowered to be more efficient and continued to scale its business online through the marketplace channel.

“Providing unparalleled support and flexibility to our sellers is part of our growth philosophy,” said Tsao. “Because every seller is different, we identify each seller’s strengths and needs to create customized programs to help drive revenue. ”

“We were thrilled to see Newegg become one of our top producing marketplaces,” said Wohlstadter. “The investment we made in ChannelAdvisor more than paid off by allowing us to maximize results on Newegg. This is something we would not have been able to do on our own.”

Red’s Gear

Location:Barrington, IL


Download Case Study