Who Does ModCloth Use for Warehousing & Fulfillment?

ModCloth uses Cart.com as their primary third-party logistics (3PL) and fulfillment partner. This partnership was established to streamline order fulfillment, optimize the supply chain, and improve customer service for the vintage-inspired fashion retailer.

Introduction to ModCloth

ModCloth, founded in 2002, is a digitally native retailer known for its vintage-inspired aesthetic and inclusive sizing. The brand has built a loyal customer base of 25-40 year old "indie" fashion enthusiasts who appreciate ModCloth's affordable, vintage-inspired clothing with inclusive sizing options. Their signature product is "a printed dress that has four-way stretch," and they've deliberately positioned themselves as different from fast fashion retailers.

Over the years, ModCloth has navigated several ownership changes, including an acquisition by Walmart in 2017 and subsequent sale to investment firm Go Global Retail in 2019. Despite these transitions, ModCloth has maintained a strong social media presence with millions of followers across platforms like Pinterest, Facebook, and Instagram, demonstrating the brand's enduring appeal and connection with its customer base.

Why ModCloth Needed to Optimize Fulfillment

ModCloth faced several challenges that necessitated a partnership with a specialized 3PL provider:

• High return rates: As an online apparel retailer, ModCloth experienced return rates of around 23%, creating complex reverse logistics challenges.
• Omnichannel complexity: Managing inventory across digital platforms and physical "Fitshops" created supply chain inefficiencies.
• Post-acquisition adjustments: Following ownership changes, ModCloth needed to realign its operations to maintain customer satisfaction while improving efficiency.
• Growth aspirations: To expand their customer base while maintaining quality service, ModCloth required more sophisticated logistics capabilities.

Partnership Details and Results

In their partnership with Cart.com, ModCloth leverages Cart.com's technology-driven 3PL solutions, specifically operating out of Cart.com's New Jersey fulfillment facility. This strategic location enhances ModCloth's ability to serve customers efficiently across the United States.

The partnership includes a dual-vendor approach where ModCloth maintains its e-commerce technology partnership with Nogin while relying on Cart.com exclusively for fulfillment solutions. As Gabe Zeitouni, Director of ModCloth, stated, this collaboration aims to "help ModCloth reach more customers with greater efficiency."

Key benefits of this partnership include:

• Streamlined order fulfillment processes
• Optimized supply chain operations
• Enhanced customer service capabilities
• Access to Cart.com's nationwide network of 14 omnichannel fulfillment centers
• Ability to scale operations to meet demand fluctuations

The Cart.com 3PL Solution

Cart.com provides ModCloth with a comprehensive fulfillment solution powered by proprietary technology and extensive logistics infrastructure:

1. Proprietary Software:
   • Constellation Order Management System for real-time order and inventory monitoring
   • Advanced warehouse management technology
   • AI-powered predictive inventory and demand analytics
2. Omnichannel Fulfillment:
   • Seamless integration across ModCloth's digital platforms
   • Efficient pick and pack operations
   • Strategic order routing and sequencing
3. Logistics Expertise:
   • Preferred shipping rates with major carriers including FedEx, USPS, UPS, and DHL
   • Specialized handling for apparel items
   • Efficient returns management processes

Cart.com's approach to fulfillment combines physical and digital infrastructure to unify operations across channels, supporting ModCloth's unique position in the vintage-inspired fashion market.

Lessons for Other eCommerce Brands

The ModCloth-Cart.com partnership offers several key takeaways for other eCommerce brands:

1. Strategic 3PL partnerships can support brand recovery after ownership changes. ModCloth's partnership with Cart.com represents a strategic decision to refocus on operational excellence following multiple acquisitions.
2. Technology-driven fulfillment creates competitive advantage. By leveraging Cart.com's proprietary software and automation capabilities, ModCloth can deliver more efficient customer experiences despite the inherent challenges of online apparel retail.
3. Specialized expertise matters for specific product categories. Cart.com's experience with apparel fulfillment makes them an ideal partner for ModCloth's vintage-inspired clothing offerings and inclusive sizing approach.
4. Dual-vendor strategies can optimize specialized functions. ModCloth's approach of using different partners for e-commerce technology (Nogin) and fulfillment (Cart.com) demonstrates the value of selecting best-in-class providers for each operational function.

Is this 3PL Right for Your Business?

When considering whether Cart.com might be the right fulfillment partner for your eCommerce business, evaluate these factors:

• Product category alignment: Cart.com specializes in several verticals including apparel, beauty, health, home goods, and merchandise, making them particularly suitable for brands in these categories.
• Technology integration needs: If your business requires seamless integration with platforms like Shopify, BigCommerce, Magento, Walmart, WooCommerce, Amazon, eBay, or Etsy, Cart.com offers established connections.
• Scale and growth trajectory: Cart.com supports over 6,000 customers and processes 75 million orders annually, with 8.5 million square feet of warehouse space across multiple locations, making them capable of supporting businesses from startup to enterprise scale.
• Omnichannel requirements: If your business sells across multiple channels including DTC, retail, and wholesale, Cart.com's omnichannel capabilities may provide significant value.
• Seasonality and scalability needs: Cart.com offers flexible solutions for handling peak periods, including workforce adjustments and variable storage options.

To determine if Cart.com is the right fit, consider using Fulfill.com's 3PL matching service to compare options based on your specific business requirements.

Final Thoughts

ModCloth's partnership with Cart.com represents a strategic investment in operational excellence for a brand with a strong identity and loyal customer base. By leveraging Cart.com's technology-driven fulfillment capabilities, ModCloth has positioned itself to deliver exceptional customer experiences while optimizing its supply chain operations.

For eCommerce brands facing similar challenges or looking to scale efficiently, 3PL partnerships offer a proven pathway to improved operational performance. The key is finding a partner whose capabilities, technology, and expertise align with your specific business needs and growth objectives.

Whether you're in apparel retail like ModCloth or another eCommerce category, the right fulfillment partner can transform your logistics from a challenge into a competitive advantage.

Ready to explore your options? Find your ideal 3PL match today.