Recently we had the opportunity to attend the National Retail Federation, and we had the pleasure of reconnecting with old friends, making new acquaintances, and learning about new Shopify app companies. We hit up some of our oldest tech partners like Rebuy and Recharge, then wandered the Exhibit Hall to learn more about new possibilities from Nibble with an innovative AI negotiation chatbot app. You can attend all the online webinars you want, but sometimes the best insights unfold over hanging out with friends in real life over drinks and tapas.
During the conference, Harley Finkelstein took the stage to unveil the company’s upmarket evolution into enterprise retail. The interview highlighted Shopify’s commitment to recruiting more enterprise retailers; addressing their unique concerns and the challenges that large eCommerce companies encounter.
Commerce Components
A new aspect of Shopify’s enterprise strategy is the introduction of Commerce Components. Launched last year, this feature allows brands to selectively adopt specific parts of Shopify’s tech stack. Commerce Components currently carries 38 customizable options, inducing Shop Pay as one of those options, handling 10% of U.S. eCommerce transactions. This flexibility addresses critical business concerns such as uptime, omnichannel experience, and system integration.
Learning from the Past, Looking to the Future
Shopify is committed to learning from past experiences, such as the divestiture of Deliverr as a valuable lesson. In his keynote, Finkelstein acknowledged the importance of taking corrective measures promptly, stating “We take our medicine when we need to.” This ability to remain introspective demonstrates Shopify’s dedication to continuous improvement.
Shopify’s leadership has positioned the platform as a composable toolbox for eCommerce merchants. Harley’s focus for the future involves more storytelling, both externally and internally, to further emphasize Shopify’s power in the evolving eCommerce landscape. Shopify remains dedicated to innovation, creating solutions for complex needs, while creating a path for adoption by enterprise businesses.
Ambaum is already looking forward to attending even more events and conferences throughout the year.
Attending an upcoming conference or event? Let’s set up a time to chat about bringing your eCommerce business to life.
Optimizing every element of your Shopify brand brings to mind the timeless adage, “When everything is a priority, nothing is”. This, coupled with the ever-evolving eCommerce landscape, can make it difficult to get the most out of your purchase funnel. To help with this, we’ve compiled our top 4 actionable strategies and insights we’ve seen to be successful for Shopify brands:
Highlight Your Top Performers: Display your best-selling products prominently on the homepage and relevant collection pages. Research shows that a significant portion of successful merchants generate the majority of their sales from a select few products.
Don’t Be Afraid to Bundle. We’ve implemented bundling solutions such as Rebuy which does a fantastic job at guiding businesses new to upselling, cross-selling, and bundling. Here are some of the common reasons our merchants set up bundling in their Shopify store:
Greater Product Selection: This helps maximize AOV by showcasing frequently purchased items, incentivizing customers to add more to their cart with a bundle discount.
Personalization: Personalizing your product offerings will help increase loyalty, email and SMS open rates, and conversions.
Cross-Selling: Enhance the customer experience by bundling add-on products with the main product to encourage a higher AOV and a better purchasing experience.
Experiment with Subscriptions to ensure a reliable and predictable revenue stream enabling better planning. Subscribers tend to be more loyal, leading to long-term retention and increased LTV. This also helps reduce acquisition costs while fostering higher engagement and providing valuable insights into the customer journey.
Add Product Upsells in the Cart and Post checkout. For example, Malomo sees users coming back 4.6 times on average to track their order. The best pages in the purchase funnel that get the most traction for our clients are typically dynamic landing pages, product upsells in the cart, and product upsells post-purchase.
Implementing these strategies can enhance not only your transactional efficiency but also establish a last connection with your customer. The key to staying on top of the ever-evolving eCommerce ecosystem lies in strategic adaptation and continuous refinement. Unlock the full potential of Shopify by setting up a call with one of our Shopify Plus Professionals here.
Leveraging 80 years of agricultural experience from the American heartland, BTI Direct serves as the dependable supplier for genuine John Deere equipment such as: large tractors, combines, sprayers, and other farm equipment, along with a variety of lawn and garden parts such as mower blades, belts, and filters. Every item is guaranteed to be original, sourced directly from the manufacturer, and crafted to the highest quality standards.
Project Summary
BTI Direct collaborated with Ambaum to explore a solution that would expand the number of SKUs available in their store. BTI wanted this functionality because they had a large demand from farmers (BTI’s primary customer) for parts that were not listed for sale by BTI in their online product catalog.
Scope of Work
We jointly determined that launching a new Shopify theme + the custom product builder would give BTI exactly what they were looking for. It’s important to note that all Shopify development was completed within a Shopify Theme so the client could view the progress in real time.
The big lift on this project was Ambaum created a custom middleware application for products, here is the scope of that work:
Company login to manage raw product information
Search bar for name, ID, Part Number, SKU
Results page representing all product variations, sorted by most recent at the top
An intuitive page of all products that have changed from the last update, so the client can verify or modify products before pushing to Shopify
Organizing product information by date and “raw” when the information is gathered
Once the information is modified by the client, the information is saved as “modified” for transparency
Option via a button to “Update Shopify” on the Product Edit Page which will update that product information immediately with the new “modified” product information
Option to schedule an update. The schedule can be paused and changed and only update Shopify if a new version of the product information exists.
Solutions
To meet BTI’s requirements, Ambaum divided the project into three distinct custom apps to cater to their specific needs. These apps were strategically designed as follows:
Ambaum employed open-source software to create the custom apps for BTI. Although there were a number of languages and frameworks that were considered, our decision to choose open source software best served the client’s long-term objectives.
Numerous businesses in the parts industry seek ways to gather real-time product and pricing data from external sources. The software development process for BTI Direct’s specific needs unfolded as follows:
Development took place in PHP and Python, utilizing the Laravel framework and a MySQL database.
The Shopify App incorporates a user-friendly management interface accessible via Shopify Admin for BTI’s convenience.
The app’s functionality involves BTI inputting product part numbers or SKUs, either individually or in bulk through CSV uploads.
This streamlined approach aligns with the overall objective of efficiently enhancing BTI Direct’s product offerings on their Shopify store.
To streamline operations and avoid excessive API calls to Shopify, we write the inventory values to a JSON file, storing it on AWS CDN. This file is regularly updated during business hours, ensuring the latest information is readily available for loading onto the corresponding product page in Shopify. Using this approach minimizes the need for frequent API calls, enhancing efficiency in the data update process.
App 2: Product Data Aggregators
Merchants often encounter challenges when consolidating product data from diverse locations and formats for bulk import into platforms like Shopify. While tools like MS Excel, Google Sheets, or Matrixify facilitate bulk manipulation, some scenarios like those involving CSV files and various websites demand a more automated approach. BTI, managing an extensive catalog of 20,000 SKUs, faced inefficiencies with manual processes; working with CSV files and various websites to acquire product information then moving that information to Shopify. This resulted in a system that was not scalable with the business.
In collaboration, we developed a Shopify App that automates data acquisition, syncing with Shopify, and product management. The system intelligently navigates online pages housing BTI’s product information, utilizing overlapping data to automate decisions on titles, descriptions, etc., based on client-defined rules.
In essence:
BTI supplied us with product data sourced from various online platforms.
We engineered a Python-based system to systematically retrieve and compile data from each source into a central repository stored in a MySQL database.
Addressing the intricacies of these processes, we implemented comprehensive error checking and logging using the ELK Stack.
Complex logic was developed to intelligently determine the optimal data for utilization.
Scheduled updates, defined by BTI, automatically refresh all product data. Additionally, users have the flexibility to manually request an immediate data update within the App.
The application maintains a meticulous log of the complete history of data acquisition, Shopify updates, and any encountered errors.
BTI sought a solution to streamline their extensive catalog’s image processing to optimize and watermark product images for Shopify. While Shopify offers a native image resizer, it has a limitation of resizing only six images at a time and this is not a viable solution for merchants dealing with a large SKU count. In response, we collaborated to create a Shopify App that not only automates resizing and watermarking but also automatically acquires and syncs all product images.
BTI initially faced a time-consuming task of photographing individual products, followed by manual resizing, watermarking, and adding to Shopify—a process unsustainable with a catalog of one million parts featuring multiple images each. Our tailored app for BTI now seamlessly manages product images based on SKU, processes them, and is queued to Sync to Shopify. Each step of the automated process is fortified with error checking, rules, and logging, ensuring a meticulous review of the image’s status and progression through the system.
This Shopify App designed by Ambaum to handle the intricate process of importing, resizing, watermarking, and syncing product images addressed BTI’s concerns about the labor-intensive task of individually processing images for their extensive catalog. This particular app not only automates these tasks but also incorporates error checking, rules, and logging for a seamless and error-resistant workflow. Furthermore, the collaborative effort resulted in an intelligent system that acquires and optimizes product data from multiple sources, ensuring BTI’s product listings are always up-to-date and accurate. These solutions collectively showcase Ambaum’s commitment to providing tailored, efficient, and scalable solutions for businesses navigating the challenges of extensive product management.
Summary
In response to BTI’s challenges managing a lot of parts, Ambaum devised a comprehensive set of custom Shopify Apps, each strategically tailored to address specific pain points. Leveraging leading open-source software, we built automated product pricing and inventory updates, product data aggregation, and streamlined image processing. These solutions not only automate tasks that were once time-consuming and manual but also enhance efficiency and scalability in managing BTI’s extensive product offerings.
In the eCommerce space, today’s modern wine and spirits brands are similar to their consumer-packaged goods counterparts, such as food and non-alcoholic beverages. These alcohol brands want to expand beyond physical retail and they aim to engage with their customers at a deeper level and own the data related to their customer demographics, interests, and geolocation. These brands are keen on prospecting new markets, launching new products, and rapidly testing their viability. They strive to curate both online and offline experiences that fortify their brand’s presence. However, in the alcohol industry there are laws and regulations that make selling online challenging. The compliance issues faced by these wine and spirit brands is often referred to as the “three-tier-system” or “three-tier compliance.”
To give a brief overview, the “three-tier system” for alcohol distribution in the United States emerged after the repeal of Prohibition in 1933. This structure was introduced to curtail certain malpractices that contributed to Prohibition, such as tied houses. In these establishments, breweries owned bars and strictly controlled what could be sold. This led to reduced competition, potentially heightened consumption, increased criminal activity, and violence.
The three-tier system was comprised of these distinct levels:
Producers: This category was made up of entities like distillers, wineries, and breweries that create alcoholic products.
Distributors: These are intermediaries who purchase from producers and then sell to retailers.
Retailers: These are the entities licensed to vend alcohol to the end consumers.
Beyond curbing the aforementioned malpractices, the system ensures:
Comprehensive control of the entire supply chain by both Federal and State Governments.
Effective mechanisms to guarantee that substantial taxes are duly collected and reported.
Fostering competition.
For this particular discussion, we’ll bypass the nuances that differentiate wine, beer, and spirits, the labyrinthine state-specific regulations, and debates on whether the system truly nurtures competition or inadvertently curbs it. Instead, our focus will be on the extensive measures that alcoholic beverage companies undertake to sell their products online and how Ambaum assists them in this endeavor.
Enhancing the eCommerce Alcohol Industry
Ambaum was approached by a select group of tech firms striving to empower the alcohol industry with comprehensive eCommerce solutions, all while maintaining compliance with the three-tier system. Ambaum’s client has fostered a nationwide network of retailers who cater to in-store customers and also legally ship to various locations. In support of these retailers, Ambaum’s client has also coordinated with licensed clearinghouse wholesalers. Brands sell to these wholesalers, who then distribute to the retailers. The outcome? Three-tier compliance! The icing on the cake is Ambaum’s client overseeing the Shopify website, ensuring that the financial transactions don’t flow directly between the end-customer (or retailer) and the alcohol brand.
The Technology Challenge: At its core, the challenge is to facilitate intricate order routing based on various parameters: brand availability, distributor presence, inventory status, shipment readiness, and geographical constraints like state and zip code.
The Technology Solution: The creation of a bespoke Shopify app. This app, once integrated into each brand’s Shopify store, streamlines the routing and syncs with Ambaum’s client management app. The app has predefined routing based on factors like location, Shopify merchant specifics, product details, inventory, retailer network, and the nearest retailer authorized to ship to a specific geographic location. The result is a blend of intricate routing logic, a seamless bridge between expansive ERP systems and Shopify, and streamlined facilitation of Ambaum’s client’s workflow. This empowers them to efficiently oversee hundreds of Shopify stores simultaneously.
Are you ready to talk about taking your business to the next level? Contact us today for an informal chat.
Recently, our team attended the BevNet Live event in Marina del Rey, a hub for the latest trends and forecasts in the beverage industry. As a Shopify Plus development agency, we’re keenly interested in how these trends impact e-commerce and direct-to-consumer (DTC) strategies.
Here’s a comprehensive look at the key takeaways from the event, with a focus on what to expect in 2024.
General Beverage Industry Trends for 2024
Non-Alcoholic and Health-Conscious Beverages on the Rise: Expect continued growth in non-alcoholic and ‘better for you’ beverages. This trend caters to health-conscious consumers seeking healthier alternatives.
Functional Drinks Gain Traction: Functional beverages, offering health benefits beyond basic nutrition, will continue to grow in popularity. These are beverages enhanced with antioxidants, minerals, vitamins, and adaptogens.
CBD and THC Infused Drinks: The market for CBD and THC-infused drinks is expanding, tapping into consumer interest in wellness and relaxation.
The Sober-Curious Movement Beat Goes On: Consumers are increasingly exploring sobriety but still purchasing alcoholic beverages, indicating a nuanced shift in consumption patterns which is prompting traditionally alcohol-only brands to expand their product offerings.
Focus on Operational Efficiencies: Brands are shifting from ambitious expansion to prioritizing execution, operational efficiencies and profitability.
Unlocking Capital and Investment in 2024: The beverage industry is set to witness an unlocking of capital and investment, focusing on sustainable growth.
Beverage Industry Brand Trends
Minimalist Packaging and Design: Brands are adopting a ‘less is more’ approach, favoring simplicity and minimalism in packaging, design, and branding.
Flavor and Format Innovation: Expect continuous innovation in flavors and formats, offering new and unique consumer experiences.
Real Ingredients Matter: There’s a growing preference for beverages made with real, natural ingredients.
Demand for Experiential Beverages: Consumers are seeking more than just a drink; they want an experience, indicating a shift towards products that offer something unique and memorable.
Ready-to-Drink (RTD) Trends
Growth in Off-Premise RTD Sales: Off-premise sales of RTDs are growing significantly, showing a 23% year-over-year growth.
Lower-Alcohol Products Drive Sales: The trend towards lower-alcohol RTDs is leading to an increase in units sold.
Decline of Seltzers and Rise of Spirit-Based RTDs: With seltzers having peaked, spirit-based RTDs are gaining momentum.
DTC Beverage Trends
Growth in DTC Alcohol Sales: eCommerce sales of alcohol are growing, driven by consumer convenience and evolving shopping habits. DTC for food and beverage brands could include benefits such as more consumer insights, brand control in messaging and identity, and enhanced AOV.
Relaxation of Alcohol Delivery Laws: States are loosening alcohol delivery laws, facilitated by advocacy from groups like The Distilled Spirits Council of the United States.
New Entrants in Alcohol Tech: The alcohol tech space is witnessing a surge in new entrants, focusing on compliance with distribution laws and innovative sales methods.
E-Commerce Platforms Adapting: Platforms like Shopify are adapting to support the growing demand for online alcohol sales, including improvements in payment processing.
The insights from BevNet Live 2023 highlight significant trends shaping the beverage industry. As a Shopify Plus development agency, we are positioned to help beverage brands navigate these trends, particularly in enhancing their eCommerce and DTC capabilities. Understanding these trends is crucial for brands looking to stay ahead in a rapidly evolving market.
Stay tuned for more insights and updates from the beverage industry as we continue to explore and adapt to these exciting trends!
