Internet Retailer - Strategies For Multi-Channel Retailing

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News Stories Wednesday, October 26, 2005   
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Better equipment helps FragranceNet.com speed up fulfillment

Now that FragranceNet.com has moved into a new headquarters that’s nearly three times the size of the online perfume retailer’s old space, the company is buying new equipment and initiating programs that will expedite fulfillment.

For instance, FragranceNet, No. 202 in the Internet Retailer Top 400 Guide to Retail Web Sites, recently purchased a machine that will fold 750 flat cardboard containers per hour into finished boxes. Another new purchase, an automated tape machine, pre-tapes all boxes for an outgoing order instead of an employee having to tape the box manually.

FragranceNet, which ships nearly 450,000 orders per year, is also putting in place a new bin numbering system that makes finding and sorting merchandise for outgoing orders easier, says president Jason Apfel.

The company, an online retailer since 1997, recently moved from an 8,000-square-foot facility to a 27,000-square-foot facility. “We couldn’t get through the holidays if we were still in the old building considering the space limitations,” Apfel says.

FragranceNet, which increased its 2005 fiscal year web sales 63% to $23.3 million from $14.3 million in FY 2004, also recently passed the 1.1 million customer mark. “This year has been a busy year, but a good one,” he says.

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