How The Blue Space Bounced Back with Shopify Capital?

Founded in 2015, The Blue Space has grown to become Australia’s leading online renovation retailer, offering a curated collection of high-quality home improvement products. But like many businesses, they faced serious supply chain issues during the COVID-19 pandemic. How did they overcome these hurdles? Let’s see.

The Problem

Before the pandemic, The Blue Space didn’t need to stockpile inventory in bulk. Customers were satisfied as long as products arrived on time. However, things took a turn post-pandemic. With global supply chain disruptions, customers became more time-sensitive and wanted their products faster. This created a major challenge for The Blue Space, as their suppliers were also affected by shortages.

The Blue Space struggled to fulfill orders quickly, which resulted in lost sales. So they needed to find a solution.

CW Byte (The Blue Space Revenue) - ColorWhistle — Source

The Solution

In 2023, The Blue Space turned to Shopify Capital to address its stock issues. Shopify Capital offers a fast and flexible solution. The application process was simple, and funds were available quickly, allowing the company to order large volumes of inventory in advance.

One major benefit? Shopify Capital allows businesses to repay the loan based on a percentage of daily sales. On high-sales days, they pay back more and on slower days, they pay less. This flexible structure gave The Blue Space a way to maintain a stable cash flow while building up inventory.

CW Byte (The Blue Space order) - ColorWhistle — Source

The Results

Since partnering with Shopify Capital, The Blue Space has secured four rounds of funding, which they’ve used to bulk up inventory and expand their operations. They’ve launched new warehouses in Brisbane and Melbourne, with plans for more in Australia and New Zealand. Their ability to fulfill orders faster has led to a 20% increase in sales revenue, an 8% increase in gross profit margin, and higher customer retention. With Shopify Capital, The Blue Space improved its stock levels, boosted sales, and enhanced customer satisfaction, positioning it as a leader in the online renovation space.

If you’re looking to grow your e-commerce business like The Blue Space, ColorWhistle offers expert e-commerce development services. Contact us today to learn more!

– Swathitha
Content Marketing Team