In the first episode of PalletSide Chat, ShipHero presents an engaging conversation with Alex Lewkowict. Alex, the co-founder of Black Wolf Nation and One23 Fulfillment, shares his experience of launching, failing, and re-launching his first product line. He discusses how he expanded his revenue streams by launching a 3PL and the importance of leveraging customer feedback as a growth accelerator. Throughout this podcast series, ShipHero aims to provide valuable insights and lessons for launching, growing, and scaling D2C brands and 3PL operations. With Alex and Dan Van Meer as your co-hosts, you can expect real stories, valuable lessons, and a deep dive into the logistical challenges that business owners face in the industry.
In this inaugural episode, Dan and Alex have an informal conversation at the home of One23 Fulfillment and Black Wolf Nation. Together, they unpack the journey behind Alex’s success in the DTC skincare industry. From their humble beginnings of drop shipping to facing numerous challenges and eventually scaling their operations, Alex and Sam have come a long way. They share their experiences of starting from a garage basement, developing a unique product, and eventually expanding to multiple larger warehouses. Along the way, they learned the importance of customer feedback, branding, and marketing, and they now aim to help other founders navigate the complexities of logistics through their podcast.
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Launching the First Product Line
Introduction to PalletSide Chat and Alex Lewkowict
Welcome to the inaugural episode of PalletSide Chat, a podcast/vlog hosted by ShipHero. In this episode, we are joined by Alex Lewkowict, the co-founder of Black Wolf Nation and One23 Fulfillment. Alex will be sharing his journey of launching his first product line, experiencing failure, and successfully re-launching it.
Overview of Black Wolf Nation and One23 Fulfillment
Black Wolf Nation is a DTC men’s skincare brand that focuses on addressing the common issue of razor bumps. They offer a range of products designed specifically for men, packaged in sleek and attractive black packaging. Additionally, Alex and his team are also involved in One23 Fulfillment, a 3PL operation that provides outsourced fulfillment services.
Discussion of Alex’s experience launching, failing, and re-launching his first product line
Alex shares his experience of starting the black wolf brand during his high school days. Initially, they faced challenges in successfully launching the brand and getting sales. However, through perseverance and learning from their mistakes, they were able to re-launch the product line with improved strategies and achieve success.
Challenges faced in the initial launch
During the initial launch of the black wolf product line, Alex and his team faced numerous challenges. Despite offering a high-quality product, they struggled to generate sales. One of the main challenges they encountered was the lack of effective AD creative and marketing strategies. They launched multiple AD creative pieces but only one of them was able to generate sales. This experience highlighted the importance of improving their AD creative and driving sales through effective marketing strategies.
Importance of improving AD creative and driving sales
Alex emphasizes the importance of improving AD creative and driving sales to ensure the success of a product line. He explains how, initially, they focused on getting at least one sale per day and gradually scaled up from there. Along the way, they learned various tips and tricks in the industry, such as capturing emails and retargeting ads. They also recognized the need to focus on operations to be competitive, as they initially struggled with branding and marketing.
Expanding Revenue Streams with a 3PL
Introduction to ShipHero’s PalletSide Chat
In this section, we shift our focus to ShipHero’s PalletSide Chat, the platform hosting the podcast. ShipHero is a company that offers a Warehouse Management System (WMS) for scaling eCommerce brands and an Outsourced Fulfillment solution.
Explanation of ShipHero’s Warehouse Management System and Outsourced Fulfillment solution
ShipHero’s Warehouse Management System is designed to help eCommerce brands scale their operations efficiently. It provides automation rules, easy-to-use integrations, and dedicated client support. On the other hand, ShipHero’s Outsourced Fulfillment solution takes the hassle of direct-to-consumer fulfillment out of a brand’s hands. This solution allows brands to cancel their warehouse lease and leave the shipping process to ShipHero.
How Alex expanded revenue streams by launching a 3PL
Alex shares his experience of expanding Black Wolf Nation’s revenue streams by launching a 3PL operation, One23 Fulfillment. By offering outsourced fulfillment services to other brands, they were able to create an additional revenue stream. This diversification allowed them to generate consistent income while also providing valuable services to other businesses.
Benefits and challenges of incorporating a third-party logistics operation
While launching a 3PL operation brought additional revenue opportunities, Alex acknowledges that there were both benefits and challenges associated with it. On the benefits side, it allowed them to leverage their existing infrastructure and resources, creating a more efficient and cost-effective operation. However, they also faced challenges in finding suitable warehouse space and the risks involved in renting a larger warehouse. Nonetheless, the overall experience has been rewarding and has contributed to the growth of their business.
The role of Alex and Dan Van Meer as co-hosts of the podcast
As co-hosts of PalletSide Chat, Alex and Dan Van Meer are responsible for sharing valuable insights, tips, and stories from their own experiences as well as those of other founders and brands. They aim to create a platform where listeners can learn from the journeys of successful D2C brands and 3PL operations. Through their conversations, they hope to inspire and guide aspiring and established entrepreneurs alike.
Leveraging Customer Feedback for Growth
The importance of customer feedback in accelerating growth
Alex highlights the significance of customer feedback in accelerating the growth of a brand. By actively listening to customer needs and preferences, businesses can gain valuable insights that can drive product improvements and inform marketing strategies. Customer feedback serves as a guide for growth and helps brands stand out in a competitive market.
Tips and tricks learned in the industry
Throughout their journey, Alex and his team have discovered various tips and tricks that have proven to be effective in the industry. This includes strategies for capturing emails and retargeting ads, which help in building and maintaining a customer base. By implementing these strategies, brands can engage with their audience and increase their chances of turning leads into loyal customers.
Strategies for capturing emails and retargeting ads
As part of their marketing efforts, Alex advises brands to focus on capturing email addresses and utilizing retargeting ads. By offering incentives for email sign-ups and building an email list, businesses can establish direct communication channels with potential customers. Retargeting ads, on the other hand, allow brands to reconnect with website visitors who might have shown interest in their products.
Focus on operations to be competitive
Based on his own experience, Alex underscores the importance of focusing on operations to remain competitive. While branding and marketing play crucial roles, a well-executed operational strategy ensures seamless order fulfillment and customer satisfaction. By optimizing backend operations, brands can differentiate themselves in the market and provide a superior customer experience.
The role of branding and marketing in the overall strategy
Although Alex initially struggled with branding and marketing, he recognizes their significance in the overall growth strategy. While operations are a crucial foundation, branding and marketing efforts help brands create a unique identity and attract customers. By continuously improving branding and marketing strategies, brands can build a loyal customer base and stand out in a crowded marketplace.
The Journey of Black Wolf Nation
Manufacturing products in Boca Raton, Florida
Black Wolf Nation manufactures its products in Boca Raton, Florida. By having control over the manufacturing process, they ensure the quality of their products and have the flexibility to adapt to customer needs.
Outsourcing fulfillment to a small workshop
In the early stages, Black Wolf Nation outsourced their fulfillment to a small workshop. This allowed them to focus on product development and marketing while leaving the logistics aspect to the workshop. However, as they grew, they encountered challenges with outsourced fulfillment and realized the need for a change.
Challenges faced with outsourced fulfillment
While outsourcing fulfillment initially seemed convenient, Black Wolf Nation faced several challenges. Communication issues, lack of control over the process, and delays in order fulfillment were among the problems they encountered. These challenges prompted them to reassess their fulfillment strategy.
Decision to manage fulfillment in-house
Black Wolf Nation recognized the need to have better control over their fulfillment process and decided to manage it in-house. This decision aligned with the founder’s passion and expertise in logistics. By insourcing fulfillment, they were able to ensure faster order processing, seamless inventory management, and overall customer satisfaction.
Advantages and suitable situations for self-fulfillment
Managing fulfillment in-house offers several advantages. It allows for better control over the process, faster order processing, and efficient inventory management. However, self-fulfillment may not be suitable for all brands. It requires logistics expertise, adequate resources, and passion for the operational side of the business. Choosing the right fulfillment strategy depends on the specific needs and goals of each brand.
Learning from Hands-on Customer Service
Understanding customers through hands-on involvement
In the early days of Black Wolf Nation, Alex and his team learned a great deal about their customers through hands-on involvement in customer service. By personally interacting with customers, they gained a deep understanding of their needs, preferences, and pain points. This direct engagement helped them shape their product offerings to better meet customer expectations.
The importance of empathy and understanding in product development
Through their hands-on involvement in customer service, Alex and his team developed empathy and understanding for their customers. This emotional connection guided their product development process, ensuring that their products were tailored to address customer needs effectively. By putting themselves in the customers’ shoes, they were able to create products that resonated with their target audience.
Iterating product offerings based on customer feedback
Customer feedback played a crucial role in the iteration and improvement of Black Wolf Nation’s product offerings. By actively seeking feedback and listening to their customers, they were able to identify areas for improvement and make necessary adjustments. This iterative approach allowed them to continuously refine their products and deliver better value to their customers.
Continuous improvement of the brand
Learning from hands-on customer service enabled Black Wolf Nation to continually improve their brand. By incorporating customer feedback, they were able to make strategic decisions that aligned with their customers’ preferences. This continuous improvement helped them build a stronger brand and maintain customer loyalty.
Lessons learned from customer service
Through their experience in customer service, Alex and his team learned valuable lessons. They realized the importance of actively listening to customers, being responsive to their needs, and continuously striving for improvement. These lessons shaped their approach to customer service and informed their overall business strategy.
Scaling and Growth of Black Wolf
Expanding from a small warehouse to larger facilities
As the demand for Black Wolf products grew, they needed more space to accommodate their operations. They transitioned from a small warehouse to larger facilities to meet the increasing demand and provide efficient order fulfillment.
The need for more space, forklift, and racking
The growth of Black Wolf necessitated the need for a larger warehouse space. Along with the expansion, they invested in a forklift and racking systems to optimize their storage and facilitate efficient inventory management.
Challenges of finding suitable warehouse space
Finding suitable warehouse space was not without its challenges. Alex and his team faced the task of scouting for locations that met their requirements in terms of size, accessibility, and cost. This involved thorough research, negotiations, and decision-making to secure the right space for their growing business.
Risks and considerations of renting a larger warehouse
Renting a larger warehouse comes with risks and considerations. It requires financial commitment and a long-term lease agreement. Black Wolf Nation carefully evaluated the associated risks and made informed decisions to ensure the profitability and scalability of their business.
Success in shipping a large number of orders
Despite the challenges and risks involved, Black Wolf Nation experienced success in scaling their operations. With a larger warehouse, optimized storage systems, and efficient order fulfillment processes, they were able to ship a large number of orders and meet the growing demands of their customers.
Creating a 3PL Operation
Opportunity to bring in other brands and create a 3PL
As Black Wolf Nation grew, Alex recognized an opportunity to bring in other brands and create a 3PL operation. This expansion allowed them to leverage their existing infrastructure and offer outsourced fulfillment services to other businesses, thereby creating additional revenue streams.
Exploration of challenges in establishing a third-party logistics operation
Establishing a third-party logistics operation presented its own set of challenges. Black Wolf Nation had to navigate the complexities of integrating other brands into their fulfillment operation, managing inventory for multiple businesses, and ensuring seamless order processing. Overcoming these challenges required careful planning, effective communication, and the implementation of efficient systems.
Reflection on the initial feeling of a large warehouse
Alex reflects on the initial feeling of entering a larger warehouse space. Despite some initial concerns about the size, it soon became clear that the growth of their business warranted the use of a larger space. The expanded warehouse allowed them to accommodate the operations of multiple brands and scale their fulfillment services.
Benefits of transitioning to ShipHero and using their SAS customer service
As part of their transition to a 3PL operation, Black Wolf Nation decided to switch to ShipHero for their warehouse management system and outsourced fulfillment needs. These tools offered valuable features, such as inventory control, automation, and dedicated customer service, contributing to the efficiency and success of their 3PL operation.
Excitement for sharing the journey and learning from other founders and brands
Alex expresses his enthusiasm for sharing their journey and learning from other founders and brands in the 3PL space. Through the platform provided by ShipHero’s PalletSide Chat, they hope to engage with fellow entrepreneurs, exchange insights, and collectively contribute to the growth and success of the industry.
Conclusion
Summary of Alex Lewkowict’s experiences
Alex Lewkowict’s journey as the co-founder of Black Wolf Nation and One23 Fulfillment is a testament to the challenges and rewards of launching and scaling a DTC brand and 3PL operation. His experience highlights the importance of learning from failures, leveraging customer feedback, and continuously improving operations.
Key takeaways from the PalletSide Chat episode
Key takeaways from this episode of PalletSide Chat include the significance of improving AD creative and driving sales, the potential for revenue expansion through a 3PL operation, the value of customer feedback in accelerating growth, and the benefits of hands-on involvement and empathy in product development.
Excitement for future conversations on ShipHero’s podcast
As the inaugural episode of PalletSide Chat comes to a close, Alex and Dan express their excitement for future conversations. They invite listeners to stay tuned for more insightful discussions with founders and brands in the D2C and 3PL space, as well as the opportunity to learn from their unique journeys and experiences.