Adverank is a tech startup with a very specific niche: helping self-storage companies with data-driven digital marketing so that targeted ads match up to where facilities actually have vacancies.

“It doesn’t sound like a very fun, cool thing, but they’re really innovating that space,” says Gabe Peters, president of ScreenBroidery (asi/305623), which recently acquired Thumbprint (asi/293564).

Innovation aside, the company doesn’t exactly have the brand cachet of an Apple or a Tesla. And yet, Adverank has a well-designed, curated e-commerce shop playing off its tag line “Storage is Bananas.” Visitors can buy a YETI mug proclaiming that phrase or a pair of Skullcandy headphones bearing the company’s distinctive “A” logo, along with a variety of other high-end branded merch featured on the site.

ScreenBroidery (asi/305623) created “The Banana Stand” e-commerce company store for tech startup Adverank. Just about any brand-conscious business these days will likely have interest in a company store.

The company store has been very successful for Adverank, Peters says, adding that Indianapolis-based ScreenBroidery built “The Banana Stand” site with a retail-like feel and clear point of view. “Their big focus for marketing is tradeshow-driven,” he adds. “They’re allowing people to go to the site and redeem gifts that get sent to them.”

It’s an example illustrative of the growing ubiquity of the company store. Just about every business – no matter the industry or the product or service being offered – wants to be a brand. And what better way to demonstrate that than by creating an e-commerce solution where customers (or employees) can purchase or redeem custom swag?

“Company stores used to be a nice-to-have,” says Griffith McDaniel, president of California-based Brandwell (asi/205946) and a 2024 ASI Distributor Salesperson of the Year finalist. “I used to [convince] people out of them, and tell them they weren’t necessary, but now they’re a must-have. So many RFPs and initial conversations with larger clients start with a company store.”

Indeed, nearly half (45%) of distributors offered branded merch company stores to clients in 2023, up from 38% in 2021, according to data from the 2024 Counselor State of the Industry report. Though there is a variety of challenges surrounding the setup and maintenance of company stores, the prospect of steady, repeat business and the inherent “stickiness” of clients using them make them an attractive prospect for distributors. “Company stores really help with the longevity of client relationships,” says Kristina Davis, a senior sales account executive with Brand Advantage Group, part of Counselor Top 40 distributor Deluxe/Safeguard (asi/316203). “Once you build something and continue to build upon it, it gets really difficult for clients to think about moving to another vendor. Having that store kind of locks you in, even if you’ve got competitors calling on your customers.”

Before jumping into this major industry trend, it’s worth taking a closer look at the benefits as well as the challenges that need to be surmounted in order to ensure company store success.

Benefits

Company stores, simply put, are online platforms that allow businesses to centralize branded merch for employees, customers and other partners. They’re designed to streamline ordering, ensuring brand consistency while making it easier to distribute uniforms, corporate gifts, incentive rewards or other swag. Some operate year-round, while others run as limited-time pop-up shops, perhaps tied to a special event or fundraising effort. There are myriad reasons an end-buyer might request a company store.

Take advantage of on-demand: Minnesota-based Liquid Screen Design (asi/254663), a Counselor Best Place to Work, has ramped up its “POD stores” due to customer demand for things like online purchasing, according to Brooklyn McCue, director of e-commerce. “They don’t want to always buy bulk inventory and end up with a lot of waste,” she says. “They want people to be able to buy what they want when they want it.”

Create an online “merch closet”: Larger companies, with a distributed workforce or multiple offices across the country, sometimes are looking for a centralized way for employees to order their branded merch – and ensure that every logoed lip balm and embroidered polo matches brand standards, McDaniel explains. Another motivator may be to “control rogue spend,” he adds, with a company store ensuring that the central office can monitor and approve purchases.

For City Paper Company (asi/162267), many clients also benefit from the Birmingham-based distributor’s 70,000-square-foot warehouse, with in-stock inventory often able to be shipped out same day, according to Maggie Wright, vice president of sales and marketing.

“Company stores used to be a nice-to-have. Now they’re a must-have. So many RFPs and initial conversations with larger clients start with a company store.” Griffith McDaniel, Brandwell (asi/205946)

Enable automation: With the right technology, company stores can integrate into a client’s customer relationship management software and human resources information system. “We can add triggers to automatically send out a new hire kit when someone is onboarded at a company,” says Peters of ScreenBroidery, which was a Counselor 2024 Best Place to Work. He adds that the triggers can get more complex, automatically sending out different welcome kits based on whether it’s for a new hire, intern or a rehire, for example. From a sales perspective, Peters notes, company store triggers can be set up to drop-ship a gift to a client or prospect based on a variety of parameters, perhaps as a follow-up from an initial meeting or as a thank-you after a particularly large sale. “We’re always working to evolve these things because it’s really important for enterprise customers,” Peters says.

Encourage personalized gifting: City Paper Company has been running a company store for a client in the trucking industry for nearly a decade. The trucking firm’s employee uniform program is handled through the company store, but City Paper also facilitates the client’s annual holiday gifting program on the site, Wright says. “We’re able to select as many products as they want, and those go live on the site,” she adds. “We get everything into our warehouse, sort it, label it, wrap it in a pretty presentation for the client, then deliver directly to their headquarters.” It’s a simple way for the trucking company to let their employees choose a gift they’ll actually appreciate and use, rather than just offering a cookie-cutter, one-size-fits-all reward.

Leverage data analytics: “Data is everything,” Peters says, adding that modern e-commerce sites enable distributors and their clients to get granular with the data, identifying trends to “really allow them to buy smarter.” So, with large redemptions, for example, ScreenBroidery can learn apparel sizes over time and start narrowing down offerings so clients aren’t stuck with a bunch of excess inventory in the wrong sizes, he says. Or, he adds, a client could look for correlations among sales reps with monthly merch budgets for thanking clients and whether redeeming those funds each month had any impact on overall sales numbers.

Challenges

Putting together a company store isn’t as simple as “set it and forget it.” Distributors have to be savvy about product selection as well as considering the seasonality and freshness of what’s being offered. Technology integration and ensuring accurate accounting from multiple company stores – many of which may be customized uniquely to a particular client’s needs – are also pain points. Consider these factors before setting up e-commerce platforms for clients.

Determine the type of solution needed: There are about as many ways to build out an e-commerce site as there are clients. “Every company store is different,” McDaniel of Brandwell says, “so it seems like we’re reinventing the wheel every time a client comes to us with a request.” It’s important to ask the right questions to determine how to structure the site and manage the back end. Will the customer be paying for the inventory up front and needs the distributor to warehouse and fulfill it? Are they looking for a print-on-demand model? Is it a pop-up shop as part of a brand relaunch or temporary campaign? Does the client want a redemption store, stocked with incentive-based merch rewards?

Don’t overwhelm with choices: Analysis paralysis and decision fatigue are real phenomena. One study on consumer decision making, for example, found that people were 10 times more likely to make a purchase from a table with six types of jam displayed on it than one with 24 different varieties. In the same way, company stores shouldn’t be stuffed with endless options. A mix of a few dozen items – hard goods and apparel – tends to be a sweet spot when it comes to product lineup. Rather than offering every polo style out there, narrow it down to good-better-best options to give variety without overwhelming end-users.

It’s also important to consider the client’s objectives and values when structuring a store, says Brian Leigh, vice president of sales and marketing at Ontario-based Promotional Source (asi/301292). For example, an automotive company is unlikely to want bottle openers, wine glasses or anything alcohol-related in a company store, since it brings up negative connotations of drinking and driving, he adds.

“E-commerce is 100% not going anywhere. If you haven’t started yet, you need to because you’re only going to get further behind.” Gabe Peters, Screenbroidery (asi/305623)

Keep the product lineup fresh: Once a company store is established, you have to refresh it regularly to keep users engaged. Leigh calls it the “Costco effect,” noting how the warehouse club features a revolving lineup of new and special items at the front of the store. “If you constantly have the same old product and it’s gone stale,” Leigh adds, “you’re going to lose all your customers.” Think about seasonality – outerwear for colder months or perhaps sunglasses and beach towels in the summer – and the appeal of special designs and limited-edition merch drops. “You have to make a reason for people to come back to the site,” Leigh says.

Ensure client buy-in: It’s also worth stressing to clients the importance of marketing their company store to end-users, whether those are retail consumers or internally to their own employees. Distributors can help shepherd marketing efforts, but clients must be actively involved and don’t assume either that employees know about the store or will be eager to buy without incentive. “A lot of companies think their employees will buy their own branded product,” Leigh says. “But they’re not going to pay their own money to promote the company. It just doesn’t happen.” Instead, awarding employees tokens they can redeem in their company’s online shop might be a more effective model.

Set expectations up front: The expense and effort of setting up a company store means that distributors and clients are often tied to each other for the long haul. Be sure to have exploratory conversations ahead of time to make sure both sides are getting what they want out of the process. “We like to date before we get married,” Wright of City Paper says. “We really like for there to be at least a year of business before we build a company store.”

Despite the complexities of company stores, they’re unlikely to wane in popularity anytime soon, and the technology will continue to advance and evolve. “E-commerce and company stores are 100% not going anywhere,” Peters says. “If you haven’t started yet, you need to because you’re only going to get further behind.”