GTSE – from £150 Magento 1 site to 3,000 orders a day
GTSE, co-founded by Tom Armenante and Freddie Miller, has rapidly transformed from a modest online retailer into a powerhouse in the eCommerce sector, achieving an impressive 3,000 orders a day. This article explores the journey of GTSE, its innovative strategies, and its ambitious plans for the future.
From Humble Beginnings
GTSE began with a simple idea: sell cable ties online. The concept was born out of the experiences of Miller’s parents, who had a background in retail. Recognizing the potential of an eCommerce-first approach, Miller and Armenante set out to create a business that would simplify the purchasing process for trade consumables.
The initial setup was remarkably frugal. Armenante recalls, “I threw a Magento 1 website together,” which cost a mere £150. This website, described as “held up by the sticky tape that we sell,” marked the beginning of their entrepreneurial journey.
Digital-First Approach
What sets GTSE apart is its digital-first mindset. Armenante emphasizes the importance of creating a frictionless experience for B2B customers. He states, “We try to make it as frictionless as possible for the B2B customers.” This focus on digital capabilities spans various aspects of the business, including marketing acquisition, product pages, payment options, and customer service.
By leveraging their digital expertise, GTSE has streamlined the purchasing process, making it easier for customers to access the products they need without unnecessary delays. This approach has proven to be a significant competitive advantage in a market where many traditional suppliers struggle to adapt.
Expanding Product Range
Initially focused on cable ties, GTSE has significantly broadened its product range. The company now offers over 25,000 products, including tape, warehouse safety products, racking, conduit, storage boxes, and signage. This expansion was driven by customer demand, as many clients began purchasing complementary items alongside their initial orders.
Armenante notes, “We started realizing that a lot of our customers buy other complementary items as well.” By positioning itself as a comprehensive supplier of trade essentials, GTSE has successfully tapped into a diverse customer base, ranging from individual electricians to large organizations involved in construction and events.
Dual-Channel Business Model
GTSE operates with a dual-channel model, selling products both through its own website and on Amazon. The company processes around 3,000 orders a day on Amazon, which includes a mix of consumer and business purchases. However, the majority of sales through their website are B2B, with customers often ordering in bulk.
Despite the success on Amazon, Armenante is cautious about the long-term implications of relying heavily on the platform. He acknowledges, “They’re all Amazon’s customers at the end of the day,” and emphasizes the importance of investing in their own B2B channel for sustainable growth.
The COVID-19 Impact
The COVID-19 pandemic presented both challenges and opportunities for GTSE. With physical DIY stores closed, many consumers turned to online shopping, resulting in a surge in sales for the company. Armenante recalls, “When the Government shut down all the physical DIY stores, everyone was stuck at home, and so our sales went through the roof.”
During this period, GTSE became Amazon’s Choice for its tape products, leading to a significant increase in demand. The company had to adapt quickly, even resorting to air-freighting stock to keep up with the unprecedented demand.
Strategic Expansion into the US
In a bold move, GTSE has recently expanded its operations into North America, launching GTSEgroup.com. This strategic shift includes hiring Jason Burton as the VP of sales for North America, who brings 11 years of cable tie sales experience to the team. The company has also established a warehouse operation in Indiana to enhance fulfillment and stock availability for US clients.
However, the expansion has not been without its challenges. Armenante notes that the company has already switched third-party logistics providers in the US due to subpar performance. Despite these hurdles, he remains optimistic about the potential for growth in the US market, stating, “The US is just massive. We’ve not even scratched the surface of it yet.”
Conclusion
GTSE’s journey from a £150 Magento 1 site to processing 3,000 orders a day is a testament to the power of innovation, digital strategy, and a customer-centric approach. As the company continues to expand its product offerings and explore new markets, it is well-positioned for sustained growth in the competitive eCommerce landscape.
Frequently Asked Questions
GTSE sells a wide range of products, including cable ties, tape, warehouse safety products, racking, conduit, storage boxes, and signage, with over 25,000 items available.
During the pandemic, GTSE saw a significant increase in online sales as physical stores closed. The company adapted by air-freighting stock to meet the surge in demand and became Amazon’s Choice for its tape products.
GTSE has launched GTSEgroup.com and hired a VP of sales for North America. They have also established a warehouse in Indiana to improve fulfillment and stock availability for US customers.
Note: The information provided in this article is based on the latest available data as of October 2023.
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