The Challenge
A national nonprofit organization launched an online store with a simple goal: generate additional revenue to help fund research and support its mission.
Like many organizations launching an ecommerce program, they relied on a traditional inventory-based model. Products were purchased in advance, stored in inventory, and fulfilled as orders were received.
Initially, the store showed strong results, generating approximately $100,000 in sales during its first month.
However, over time sales began to decline dramatically. Within just a few months, monthly sales had fallen below $5,000. By the tenth month, sales had dropped to less than $1,000 per month.
After evaluating the program, the cause became clear. Customers returning to the store were seeing the same products month after month. Expanding the catalog required additional inventory investment, increased storage requirements, and greater financial risk.
The organization wanted to offer more choices, but didn’t want to increase inventory liability.
The WGSD Solution
WGSD recommended a hybrid inventory strategy.
Inventory-Based Products
Items that could not be economically produced on demand would continue to be stocked and fulfilled traditionally.
On-Demand Products
Apparel and decorated merchandise would be transitioned to an on-demand production model.
Benefits Included
- Expanded product selection
- Reduced inventory investment
- Reduced inventory risk
- Lower storage requirements
- Greater flexibility
- Faster introduction of new products
The Birth of a New Service
At the time, WGSD had not yet launched an on-demand production division. The idea was developed specifically to solve this customer’s challenge.
When the nonprofit embraced the concept and asked how quickly the program could be implemented, WGSD invested in the equipment, processes, and expertise necessary to bring the solution to life.
What began as a solution for one customer ultimately became the foundation of WGSD’s On-Demand Production Services.
The Results
The redesigned program launched with a significantly expanded product offering and a dramatically improved customer experience.
The organization was able to:
- Expand its online catalog
- Reduce inventory liability
- Increase product variety
- Introduce new products quickly
- Improve customer engagement
Most importantly, sales rebounded and continued to grow.
Today, the program averages more than $50,000 in monthly sales, with proceeds directly supporting the nonprofit’s mission and research initiatives.
| Before WGSD | After WGSD |
|---|---|
| Inventory-only model | Hybrid inventory and on-demand model |
| Limited product selection | Significantly expanded catalog |
| Declining customer engagement | Reduced inventory investment |
| Less than $1,000 monthly sales after 10 months | More than $50,000 average monthly sales |