Nexternal Solutions Helps Online Store Reach New HeightsHow did a home-based business that started as an after-work eBay hobby morph into a full-fledged small business in less than a year? Three key factors fueled the growth of Ty's Toy Box. These factors included: delivering better customer service, offering greater depth of specialized product lines unavailable either online or at retail and forging strong relationships with suppliers and vendors, particularly Nexternal Solutions.
During the 2003 holiday season, Ty's Toy Box sales increased 1,320%, a year-over-year growth of $200,614 in gross revenue. "Partnering with Nexternal Solutions enabled consistent order fulfillment, efficient shipping and tracking processes, and precise revenue accounting," explains Ty Simpson, Founder.
While both working full-time during the day, Ty and his wife, Heather, worked nights to package the day's eBay purchases totaling more than 1,200 orders during November and December 2002.
However, this process was filled with challenges regarding customer service, communication, order fulfillment, revenue tracking, and shipping procedures. For example, during the peak holiday season of 2002, virtually all orders were shipped via another carrier. More importantly, there were no tracking capabilities and shipping and handling charges were estimates only. A missed birthday or a delayed shipment could turn into a lost customer.
Ty's Toy Box owners hoped to grow the business by establishing their own Internet commerce site -
www.tystoybox.com - but first had to address business issues involved with expansion. Ty's Toy Box contracted with Nexternal Solutions of Carlsbad, CA, a provider of customized online storefronts with comprehensive order, customer, and product management systems.
Growing From Sideline To Small Business
"Nexternal was the key to turning a part-time, home-based sideline into a full-fledged, home-based small business," says Heather Simpson. "Their robust e-commerce software, with features such as the online shopping cart, a powerful, yet easy to use back office, and integrated UPS OnLine® Tools solved our major issues in growing our business."
Nexternal's e-commerce software delivered additional fuel for growth, according to Ty Simpson. "For the first time, we were able to quickly and easily compile a database of customers who we could then notify directly of new merchandise and special offers," he explains. "Their online shopping cart helped us accurately monitor revenue versus costs and streamlined our inventory management and fulfillment processes. In addition, the built-in search engine optimization tools have provided a major source of traffic to our site."
"The integrated UPS OnLine Tools also solve a major customer service issue by helping us work more efficiently," explains Ty. "Shipping costs and options are precise and tailored to customers' needs. If they need a package sent overnight, the next afternoon, or they are in no rush, they can get a shipping quote instantly before placing their order. Our team and our customers can now track shipments in real-time. If a customer calls or e-mails with a question about an order, we can immediately check its status. We can also print shipping labels directly from our Nexternal back end system."
Nexternal's capabilities also allowed Ty's Toy Box to grow in unexpected ways such as selling to international customers, a market that is underserved by big retailers.
Taking The Next Steps
So far in 2004, Ty’s Toy Box has migrated operations to an office/warehouse space, expanded its current offerings in The Wiggles and Mighty Beanz lines, and is adding new character-licensed offerings in a number of hot new properties such as Teen Titans and Strawberry Shortcake. These new lines will enable Ty's Toy Box to grow along with its core customer base, while continually emphasizing an outstanding customer experience.
Ty concluded, "Nexternal Solutions enabled us to manage orders from entry to delivery so we can focus on building the business. Maybe by this year's holiday season we can start parking our cars in the garage."
