Allbirds expands its sales platform, now accessible via Amazon.
Feeling the need to spread its eco-friendly wings far and wide, Allbirds - the start-up footwear and apparel brand known for its sustainable ethos - is now gracing the digital shelves of Amazon. That's right, folks! Their Tree Runners, Tree Breezers, and more are now up for grabs on the world's largest online marketplace.
The company made the announcement on November 14, confirming the news via email to Retail Dive. Smooth sailing ahead, as their products will be shipping from Amazon, ready to dance into the hands of consumers wanting a greener choice.
According to the brand, it's a strategic move to meet customers where they're at, providing a green alternative amidst the sea of regular fare.
With this step, Allbirds is strengthening its distribution network, not viewing Amazon as a wholesale partner but as an ally to reach customers eager for sustainable options. Previously, they've been steadily amassing an impressive array of retail partners, making Allbirds shoes available in top retail chains such as REI, Dick's Sporting Goods Public Lands banner, and Zalando.
Allbirds isn't the only one venturing into Amazonsphere. Brands like Peloton, Our Place, and Care/of have also hopped onboard in recent years, eager to expand their reach and green their stats.
The company isn't resting on its laurels though, recently unveiling new footwear designs. Last August, the vintage-inspired Courier, priced at $125, graced the shelves. More recently, it gave its iconic Wool Runner a stylish update.
However, this eco-friendly powerhouse isn't all sunshine and roses. Slumping sales led to a net revenue decline of 21.2% year-over-year in Q3, reaching $57.2 million. The financial hit was mainly due to promotional activity slashing the average selling price[2]. Allbirds' net loss increased by around 25% to $31.6 million, with fourth-quarter predictions pointing towards further decline. CEO Joey Zwillinger vowed to focus on launching more innovative assortments in the coming year, keeping core franchises fresh and updating existing silhouettes[2].
In essence, Allbirds is embracing a multi-pronged distribution strategy, combining DTC channels with third-party retailers and marketplaces to boost reach, visibility, and operational efficiency[3]. By adapting to the ever-changing retail landscape, Allbirds continues to Head for Allgood as it forges its path toward sustainability.
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Allbirds' Strategic Multichannel Distribution Approach
Originally a digitally native eco-friendly brand focused on sustainable footwear and apparel, Allbirds has evolved its expansion strategy to include both direct-to-consumer (DTC) channels and third-party retail partnerships.
Direct-to-Consumer (DTC) Focus
Allbirds initially gained recognition through its own e-commerce platform and a network of company-owned stores. The DTC approach allowed the brand to maintain control over its brand experience, sustainability narrative, and customer relationships. In recent years, Allbirds has optimized its physical footprint by closing underperforming stores and focusing resources on top-performing locations, improving in-store performance metrics[1].
Retail Partnerships and Aggregator Platforms
Despite its DTC roots, Allbirds has increasingly leveraged third-party retail channels for wider reach and accessibility. The company partners with established retailers like Amazon and select brick-and-mortar outlets, such as REI, Dick's Sporting Goods Public Lands banner, Zalando, and others[4].
Reasons for Multichannel Distribution
- Broader Reach: Partnering with retailers and marketplaces like Amazon allows Allbirds to tap into a wider audience that seeks sustainable options and may not actively search for niche brands.
- Visibility and Credibility: A presence on well-known platforms enhances brand awareness and can increase customer trust.
- Operational Efficiency: Partnering with retailers and distributors can help Allbirds reduce overhead associated with managing a large network of own stores and logistics.
- Market Adaptation: In international markets, local partners can help navigate regulatory, logistical, and cultural challenges, making expansion more manageable[4].
- Optimization and Focus: By consolidating its store fleet and investing in top-performing locations, Allbirds can concentrate resources for maximum effect, using third-party channels to supplement growth[1].
Summary Table: Allbirds Sales Channels
| Channel Type | Examples/Partners | Purpose/Benefit ||-----------------------|--------------------------------|----------------------------|| Direct-to-Consumer | Own website, company stores | Brand control, sustainability narrative || Online Marketplaces | Amazon | Broad reach, increased visibility || Brick-and-Mortar Retail | Select international partners | Physical presence in new markets || Distributors | International distributors | Local market expertise, lower overhead |
- Allbirds, the eco-friendly brand, strengthens its distribution network by partnering with Amazon, offering its products on the world's largest online marketplace.
- With this strategic move, Allbirds aims to provide a sustainable alternative to customers without compromising on reach and accessibility.
- The company's multichannel distribution approach also extends to retail partners, such as REI, Dick's Sporting Goods Public Lands banner, and Zalando.
- Allbirds' decision to partner with third-party retailers is grounded in the desire for broader reach, visibility, and operational efficiency.
- This strategic approach has allowed Allbirds to navigate cultural, logistical, and regulatory challenges in international markets.
- In addition to its multichannel strategy, Allbirds continues to innovate with new footwear designs, like the vintage-inspired Courier and latest update to the Wool Runner.
- Despite a net revenue decline in Q3, Allbirds' CEO, Joey Zwillinger, remains optimistic about the future, promising to focus on launching more innovative assortments.
- This multichannel strategy is a reflection of Allbirds' adaptability in the face of the ever-changing retail landscape, as it heads towards sustainability.
- As a digitally native brand, Allbirds initially gained recognition through its own e-commerce platform and network of company-owned stores, emphasizing brand control and the sustainability narrative.
