Aterian Inc., a technology-enabled consumer products company, found itself at a crossroads that many growing brands face. With multiple top-selling brands across categories like home appliances, health and wellness, and air quality devices, they were managing a sprawling operational footprint.
Aterian’s order operations had become increasingly complex, with transactions originating from more than 40 selling points across major marketplaces, including Amazon, Walmart, and eBay, plus their own direct-to-consumer websites.
Behind the scenes, Aterian used an internally developed order management platform since the company’s inception. While this homegrown solution had served them well initially, it was becoming clear that to increase business efficiency and agility, they needed a different approach.
The company was looking to adapt more quickly to changing business needs, launch new marketplaces, and work with new inventory partners. Adding TikTok Shop as a new selling channel was a particular priority, and they needed to accomplish this with minimal disruption.
The Cost of Complex Systems
When companies manage order operations through disconnected systems or custom-built platforms, the hidden costs can be staggering. For Aterian, maintaining its internal platform required considerable financial and human resources. Their technology architecture required continuous development and maintenance from specialized teams across multiple countries.
The true cost burden became evident when they evaluated their technology infrastructure. By shifting their technology platform’s architecture, AIMEE, away from a fully internally developed model to an integrated third-party approach, they identified potential savings of approximately $700,000 annually just from this single technology shift.
However, beyond technology, their complex operational structure required a substantial workforce to manage manual processes and maintain connections between systems. Many of these positions existed solely to address the limitations of their technology infrastructure. The more complex the system, the more resources needed to keep it running smoothly.
Simplifying Multi-Channel Operations
Aterian needed to integrate all its selling channels and fulfillment providers with its existing back-office ERP system (Acumatica). Any solution would need to support sophisticated order routing capabilities to minimize fulfillment costs as business goals evolved and their channel matrix changed. Additionally, as both a major Amazon seller and a publicly traded company, they required robust compliance with privacy regulations and audits.
After evaluating traditional order management systems and iPaaS tools, Aterian selected Pipe17’s Order Operations Platform. The deciding factors were Pipe17’s ability to integrate multiple selling channels (Shopify, Amazon, eBay, Walmart Marketplace, and TikTok Shop) with their multiple 3PL providers and ERP system, along with strong Acumatica support and robust order processing capabilities.
Implementation Journey
Aterian began a phased rollout of Pipe17. They started with Squatty Potty, one of their best-known brands, to test Pipe17’s capabilities and reduce potential risks. Pipe17 completed this first implementation in under 30 days. It managed orders coming in through Shopify Plus and TikTok Shop, routed them to multiple fulfillment providers, kept inventory data accurate in Acumatica, and maintained compliance with privacy rules.
With the pilot’s success, Aterian rapidly expanded implementation across its entire omnichannel order operations. Over the next 60 days, they moved the rest of their order operations onto Pipe17. This encompassed all selling channels, including Amazon Seller Fulfilled Prime, Walmart Marketplace, Mirakl, eBay, and Shopify Plus, as well as Aterian’s UK and EU stores, along with their multiple 3PL partners and Acumatica ERP.
The entire transition from start to finish took less than 90 days, faster than the year-long implementation timeline typical with traditional order management systems.
Measurable Results
Aterian replaced its internal system and reduced operational costs by more than $4 million each year. Pipe17 helped Aterian save money, manage orders more efficiently, and keep a real-time view so they could quickly adapt to market changes. The automated processes and live monitoring provided by Pipe17’s LiveOps Dashboard empowered the team to stay ahead of order flow and address any issues promptly.
The solution also ensured compliance with consumer privacy regulations through robust privacy enforcement capabilities that safeguard personally identifiable information (PII), a critical requirement for a publicly traded company and major Amazon seller.
Key Learnings
Aterian’s transformation reveals several important insights for companies facing similar operational challenges. First, the change to an integrated third-party approach not only reduced costs but increased speed and agility to support their omnichannel strategy.
Kevin Nohl, SVP Global Supply Chain at Aterian, notes: “Order fulfillment is flowing smoothly. It was impressive how quickly Pipe17 integrated all of our ecommerce channels (including Shopify, TikTok, Amazon, Walmart, et al.) with our multiple 3PLs.”
The project also demonstrates the value of real-time visibility across the entire order lifecycle. By using Pipe17’s LiveOps Dashboard, Aterian gained a “live traffic” view of orders and inventory with the ability to drill down to specific items for review, along with real-time notifications for any exceptions that might occur.
Scaling for Future Growth
With its new order operations infrastructure in place, Aterian is well-positioned to execute its omnichannel strategy, explore new market opportunities, and drive continued growth and profitability. They can now process thousands of orders daily across 40 distinct selling points, with orders automatically routed to different fulfillment centers based on customer location.
Aterian’s success reveals the painful truth about complex operations: sometimes DIY solutions become million-dollar handcuffs. Most companies underestimate what their patchwork systems actually cost them. Beyond obvious tech expenses, consider the hidden costs: specialized staff, endless manual workarounds, and the opportunities lost while managing multiple systems.
Operational complexity is a silent growth killer. Businesses need to improve their operational capabilities and position themselves for sustained growth.
Book a consultation today to calculate your potential savings by switching to an integrated third-party solution.
