How Small Batch, Local Products Propelled This Ecommerce Startup to an International Stage

Danny Wong

Sam Davidson is a native Nashvillian with an uncanny amount of local pride. On the phone with him, you get the sense that Nashville, Tennessee is where the party is at — not New York City, Los Angeles or Chicago. However, most people traveling to and around the U.S. seldom consider Nashville a first-priority tourist destination. So, to give his city the attention and platform it deserves, Davidson partnered with friends Rob Williams and Stephen Moseley in 2013 to co-found and launch Batch, a gift and retail company that originally aimed to, as Davidson describes, “share what we loved about our hometown with as many people as possible.” The team bundled items they believed were well representative of why their city was awesome — from its locally roasted coffee to artisan goods — and sold geographically-themed subscription boxes. And things went surprisingly well.

By the end of Batch’s first month in business, the company already had 200 customers. By month three, Batch was selling more than 1,000 orders of its locally curated gift boxes. Their service spread like wildfire and Davidson, Moseley and Williams had a full-fledged business going.

Batch homepage

Giving the “gift of Nashville”

Early on, the company realized that it was not an ordinary product subscription business. First, it was focused exclusively on locally produced products. Second, a large majority of its “batches” were given as gifts. Eventually, the trend was clear; with shipments going out to 12 different countries, the team behind Batch knew that its customers were excited about giving the “gift of Nashville.”

For the average Joe, a Batch subscription was an easy way to share a taste of his favorite southern city. And over the past three years, the Batch team has expanded its Southern coverage and now works with a variety of independent makers across Nashville, Memphis, Charleston, and Austin.

By dedicating their business to locally sourced products across the American South, Davidson, Moseley and Williams found their company playing at an international stage. And three of the mechanisms that fueled this business’s growth are well worth understanding.

1. One product, two new customers

The peculiar secret to Batch’s growth over the years lies in its service’s innate ability to spread word-of-mouth. Davidson explains, “Our product touches two consumers with each purchase — the gifter and the recipient.” And that alone can spur additional orders from completely new customers. For instance, Jane may purchase a batch for her mother, who later orders a subscription for Jane’s father, who buys a whole bunch of batches for his golf buddies. “We have a LOT of repeat customers who are gifting to multiple family members or colleagues,” shares Davidson. Indeed, if surprising results from social experiments posted to YouTube do not restore your faith in humanity, perhaps the simple gestures of love demonstrated by Batch customers will. “We’re always amazed at the generosity of people as so many customers find occasions to give gifts beyond the typical gifting reasons like birthdays or anniversaries,” says Davidson.

As a gift-giving company, Batch is uniquely positioned to create a compelling customer experience for two different individuals with each unique purchase.

2. Creatively building global buzz about local products

Batch press

Another way Batch became popular was through public relations. “We earned a lot of good local coverage [in Nashville] for our launch, and have since said ‘yes’ to every media opportunity that falls into our lap,” tells Davidson. And it is this ‘yes-man’ attitude that led to favorable media coverage which put the spotlight on Batch’s service. “Early on, Style Blueprint wrote a glowing review about our new service and that was the tipping point locally. A few months later, Southern Living featured us nationally in print and online and that took our business well outside of Nashville to folks across the US.” Since then, the company has also received public nods in The New York Times, Inc., BuzzFeed, and Travel + Leisure, which have expanded Batch’s reach beyond U.S. borders.

Of course, to consistently get the brand’s name out there, Davidson and his team regularly pitch the media when they have conjured up a newsworthy angle. Examples of broad categories the business touches on include entrepreneurship, local business, urban revival and renewal (specifically in Nashville & Austin), subscription-based businesses, and Ecommerce.

3. Turning corporate sales into cash

Currently, Batch generates 7-figures in annual sales, half of which comes directly from consumers purchasing batches for themselves and loved ones while the other half comes from corporate customers. Among Ecommerce companies, it seems counter-intuitive to approach businesses for sales. However, brands that fail to do so stand to lose out on a lot of money. According to Forbes contributor Peter Cohan, “The market for employee incentives in the U.S. is estimated at $38 billion.” And for Batch, corporate client sales have been a boon for business.

While the average consumer might order as little as one box to as many as four for a yearly subscription (boxes now ship quarterly), most corporate clients place an order for between 25 and 40 boxes outside of holidays. “In December, the average order range triples to 75 to 120 boxes per client,” says Davidson. But the firm has fulfilled as many as 1,500 custom boxes at one time for enterprise buyers. Batch’s corporate offering often helps employers show their thanks and gratitude to their hardest working employees. Also, it is especially attractive for: “Client-based businesses, where winning and keeping customers is crucial, as well as staying top-of-mind. So law firms, PR folks, accountants, financial advisers, realtors,” notes Davidson. A custom Batch box works particularly well among organizations that need to “wow”’ their own customers. For instance, Davidson shares, “We also have healthy sales among hotels and other hospitality-related businesses, from stocking local amenities hotels can use as welcome gifts or ‘sorry we messed up your room service order’ apologies. Likewise, because we are used often at events and meetings as welcome or VIP gifts, hotels are great referral sources for us.”

Batch’s corporate offering often helps employers show their thanks and gratitude to their hardest working employees. Also, it is especially attractive for: “Client-based businesses, where winning and keeping customers is crucial, as well as staying top-of-mind. So law firms, PR folks, accountants, financial advisers, realtors,” notes Davidson. A custom Batch box works particularly well among organizations that need to “wow”’ their own customers. For instance, Davidson shares, “[We also have healthy sales among hotels and other hospitality-related businesses], from stocking local amenities hotels can use as welcome gifts to ‘sorry we messed up your room service order’ apologies. Likewise, because we are used often at events and meetings as welcome or VIP gifts, hotels are great referral sources for us.”

Batch corporate

Though it may be unusual for an up-and-coming Ecommerce brand to begin selling to corporate clients in bulk, the advantages of corporate sales make it an opportunity that can be hard to resist. The typical corporate order allows for better margins, easier fulfillment and extremely high brand loyalty, explains Davidson. He expects happy corporate customers will consistently source their employee gifts from Batch for decades to come. Also, staffing your sales team does not have to be a daunting task. To keep its sales pipeline steady and flowing, Batch has two full-time salespeople, one in each of its two biggest markets: Nashville and Austin.

How other Ecommerce store owners can harness the power of gifting

Good gifts naturally spread positive word-of-mouth making every purchase an opportunity to go viral. While most stores sell gift cards, they should also consider developing new offerings that are better made for gifting or creating easier opportunities for shoppers to gift existing products. Davidson recommends, “Figure out what is hard or confusing for potential customers about gifts in [your industry] and devise a solution. Then, perfect it.”

Sell a product that people would be proud to gift and one that anyone would be excited to open and consume. With that, you have the foundation of what could be a really successful growth channel for your online store.