UrbanStems CEO Seth Goldman shares the intricate operational challenges and strategic pivots required to scale a national flower delivery service. Despite a 60% business drop early in the pandemic, the company achieved 130% sales growth in 2021 by focusing on infrastructure, technology, and talent. This episode offers key insights into managing logistics for perishable goods, leveraging venture capital for growth, and prioritizing investments for sustained DTC success.
Key takeaways
To scale a DTC business with perishable goods, build robust infrastructure that accommodates specialized logistics like cold chain management and last-mile delivery to maintain product quality.
After an operational disruption, strategically re-evaluate and invest in core business areas like fulfillment and customer experience to rebound and drive significant growth.
Utilize venture capital funding not just for immediate growth, but for long-term investments in technology, user experience, and talent acquisition to solidify market position and customer retention.
Prioritize customer retention post-acquisition by enhancing the overall user experience and continuously optimizing the customer journey to foster loyalty over time.
Balance investments across infrastructure, technology, and talent, understanding that growth in one area often necessitates complementary development in the others for holistic business scaling.
It may seem simple to order a bouquet of flowers and have it delivered to your home, but a lot of work goes into such a task.
On this week's Modern Retail Podcast, Seth Goldman, the CEO of online flower and plant delivery service UrbanStems, discussed the ins and outs of the e-florist business.
Over the last two years, UrbanStems saw year-over-year growth in both 2020 and 2021 -- even after the company shut down its local delivery services in March of 2020, which resulted in a 60% decline in its business at that time. But when things reopened in July, the company was back on track and "revenue growth continued to scale," said Goldman. Indeed, sales grew 130% in 2021.
Now, with these two years in the rearview mirror, Goldman says he's figuring out what parts of the business to invest in. "For all brands, it's about starting to make sure that all of those customers that tried us out are sticking," he said.
Venture funding is helping with that. Last year, Urban Stems raised $20 million, giving it a valuation north of $100 million. This year, Goldman is trying to continue figuring out how to best use that money.
One of his focuses is on building out the infrastructure that allows the company to deliver its flowers. Meanwhile, Goldman is also investing in both the technology and user experience side of things. Lastly, the company is also investing in its team and growing its headcount.
Goldman spoke about all of those aspects of the business -- infrastructure, technology and talent -- and how he's thinking about prioritization. "There's a lot of work to continue to do across all three," he said.
What does this episode say about supply chain & operations?
To scale a DTC business with perishable goods, build robust infrastructure that accommodates specialized logistics like cold chain management and last-mile delivery to maintain product quality.
What does this episode say about dtc strategy?
After an operational disruption, strategically re-evaluate and invest in core business areas like fulfillment and customer experience to rebound and drive significant growth.
What does this episode say about finance & fundraising?
Utilize venture capital funding not just for immediate growth, but for long-term investments in technology, user experience, and talent acquisition to solidify market position and customer retention.
What does this episode say about founder & leadership?
Prioritize customer retention post-acquisition by enhancing the overall user experience and continuously optimizing the customer journey to foster loyalty over time.
What does this episode say about supply chain & operations?
Balance investments across infrastructure, technology, and talent, understanding that growth in one area often necessitates complementary development in the others for holistic business scaling.
