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Concept Study: Driving ROI for Wholesale

  • Writer: 7thonline
    7thonline
  • 7 days ago
  • 2 min read

A leader in multi-channel inventory management and retail planning solutions, 7thonline has been empowering retailers to drive ROI across channels for 25+ years. With artificial intelligence and machine learning embedded into the core of the platform, 7thonline enables data-backed, integrated decisions that directly impact the bottom line: higher margins through proactive selling, reduced overproduction and excess inventory, smarter allocation, improved order fill rate and more. 

business analysis

Based on various metrics such as revenue and gross profit margin, our team is able to conduct concept studies to show the impact of our platform for various brands; the concept study includes aggressive, likely and conservative scenarios to calculate the return on investment for our direct-to-consumer and wholesale solutions. 7thonline’s ROI model was developed by Kurt Salmon, part of Accenture Strategy, based on an independent study of 7thonline’s clients to serve as a benchmark for investment evaluation for retail executives.


For brands with wholesale channels, acting on new opportunities that improve inventory productivity amplifies ROI through improved order fill rate, additional margins from proactive selling and more. Using 7thonline’s demand forecasting and consumer-centric selling tactics for wholesale operations, we ran the following numbers for a detailed ROI analysis.


According to the ROI analysis, a brand with an estimated $2B annual revenue is projected to see the following:

  • Conservatively, the analysis projects a 4X net benefit after the first year, with a net benefit of $8.3M. By year five, ROI jumps to 2513%, with a cumulative benefit of $96.6M.

  • Aggressively, the analysis projects additional revenue due to proactive selling to be $26M, and $51.9M due to improved fill rate, in year one.

  • Using AI for operational efficiency saved the brand between $1-3.1M in SG&A (Selling, General and Administrative) costs for the first year.


For a $250M brand, we ran an ROI analysis of using 7thonline’s wholesale solutions to find the following:

  • Assuming the brand is not overproducing products, they were projected to see a conservative increase in revenue growth of $1.9M within the first year.

  • Conservatively, the analysis projects a 161% ROI in the first year due to an increase in revenue and decrease in SG&A costs—realizing 100% of benefits by year two.

  • In year five, the brand has reached nearly 8X on ROI, with a cumulative benefit of $7.3M, while the cost of the project has decreased to less than half the original investment. 


Our AI-native system utilizes proprietary vertical-specific algorithms and industry best practices to drive value for all brands and retailers across wholesale, DTC and ecommerce channels regardless of size. As brands continue to grow, our platform not only scales to their business needs but also realizes more potential, boosting returns for multi-channel brands. 


To learn more about 7thonline’s AI-powered wholesale planning and forecasting solutions, email us at info@7thonline.com or book a demo with the team.

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