MULTI-CHANNEL FULFILLMENT

How Hatch increased their orders after offering free shipping

Hatch

A company with sweet dreams

In 2014, parents Ann Crady Weiss and Dave Weiss founded the company Hatch and set out to better the sleep of new parents and babies. After fighting a combination of sleepless nights with their newborn and Dave’s insomnia, the couple was inspired to launch their innovative sleep products. After launching the company’s original and beloved sleep product for little ones, Rest, it became clear—babies weren’t the only ones who needed help at bedtime. Now Hatch is working on a new goal: better sleep for the entire family. The company developed additional products, adding Rest+ and Rest Mini to the Rest family and introducing Restore for adults, and even started offering a subscription for sleep content on their app.

Headquartered in Menlo Park, Calif., Hatch is a woman-owned business that is family-focused and cares about making high-quality products. And it shows. One customer said, “This device is the best sleep technology I’ve had the wonderful opportunity to use. After day 1, I have had the easiest time waking up with the help of the wake up alarm. The light function is amazing, and I can’t believe I was able to wake up with no problem and before my alarm.”

They have already helped more than one million people sleep better, but this is just the beginning.
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Choosing the right 3PL provider

To grow their business, Hatch enlisted the support of a third party logistics (3PL) provider for their fulfillment. Since the company sold their products on multiple ecommerce channels, including their website Hatch.co and Amazon, partnering with a fulfillment provider freed up time and scaled operations. Hatch discovered that Amazon Multi-Channel Fulfillment (MCF) could fulfill their website orders using the same inventory they were using for Amazon orders. Using MCF allowed them to experience over 50% in savings in freight costs. The company began by testing MCF with one off orders, like sending samples to retailers or replacement items, but soon switched their entire B2C inventory to MCF.

Hatch uses MCF’s integration with a third party API to fulfill all of their orders on Hatch.com. The use of MCF has allowed Hatch to improve their customers’ experience. With their previous 3PL provider, Hatch charged for standard shipping. Now, MCF enables Hatch to pass their savings onto their customers and provide two day shipping for free, which has had a positive impact on their sales.

“Not only did I get these items earlier than expected, but they are amazing!” said a Hatch customer. “I am getting better sleep thanks to the guided meditations and relaxing sounds. My kids are sleeping better, and my oldest loves the lights that I can program. He knows when the light is red it’s time for bed and when the light is green and the birds are chirping it’s time to get up.”

Handling quick growth

Beginning April 2020, Hatch.co orders boomed from COVID-19. During this stressful time, families needed a little extra help sleeping, and those with little ones leaned on Hatch products to regulate sleep routines for their children. In partnering with MCF, Hatch was able to manage the unexpected influx of orders and maintain their inventory effectively, causing their revenue to double from the previous year. Hatch continues to see growth in sales and works to scale efficiently in order to accomplish their dream of better sleep for everyone.

Looking forward

Hatch wants to expand internationally in the coming future. MCF assisted them in selling sleep products to people in Canada and the UK, and they plan on expanding into Australia this year. For a company that grew from 17 employees to a team of 50, working with the right fulfillment partner was the key to managing their growth.

“We’re thrilled to be working with MCF as we continue to grow our business,” said Hatch co-founder and CEO Ann Crady Weiss. “Our customers are pleased with the free and speedy shipping we offer, so that they can have better sleep, faster. We’re excited to continue to partner with them to reach our new goals in 2021 and beyond.”

Ready to get started?

Multi-Channel Fulfillment provides low cost and efficient fulfillment solutions for businesses of all sizes. If you are interested in how MCF can help your business scale, contact us.

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