Executive Summary
This article outlines a modern, efficient, and minimally disruptive strategy for transforming imaginary "SprocketWorks" from a traditional B2B wholesaler into a dual-channel business with an additional direct-to-consumer (B2C) revenue stream.
The proposed model uses best-in-class digital tools, systems integrations, and automation to enable this transformation while respecting the strengths and stability of the existing business. A new division, "Sprockets Direct", will be created to handle smaller batch sizes and engage directly with end-users (e.g., makers, tinkerers, craft producers, and educators).
The goal: capture new market share, increase margin per unit, and future-proof the business.
Context: Understanding SprocketWorks
Current State:
- B2B only, minimum order size = 1 full pallet
- Import and warehouse high-quality sprockets
- Sales team manages customer acquisition and order fulfillment manually
- Sage is used for accounting; most other functions are spreadsheet-based
Opportunity:
- Enable small businesses and individuals to buy sprockets in low volumes (e.g., MOQ of 24 units per box)
- Extend brand presence, increase visibility, and capture long-tail demand
Proposed Solution: Launch "Sprockets Direct," a sister brand that purchases pallets from SprocketWorks and resells to B2C customers via an online storefront with full digital infrastructure and automation.
Relationships to Preserve
To ensure smooth operations and internal support, the following relationships must be respected:
| Department/Team | Role in Transition | Integration Consideration |
|---|---|---|
| Sales Team | Focus remains on pallet sales. B2C leads with large potential can be passed to them. | B2C marketing automation will flag high-volume leads for sales follow-up. |
| Operations/Warehouse | Continue to process bulk pallet shipments. No direct involvement in B2C shipping. | Sprockets Direct to handle B2C logistics via 3PL. |
| Finance (Sage) | Unified financial reporting for both companies. | B2C sales data flows back to Sage via integrations. |
Challenges to Consider
| Challenge | Detail |
| Setup Cost | Systems, website, automation, integration, branding |
| Operational Cost | Staff training, packaging, 3PL fees, shipping |
| Customer Volume | Higher quantity of orders, lower value per order |
| Brand Messaging | Must differentiate but align with SprocketWorks’ quality reputation |
| Customer Support | Require scalable, automated solutions for FAQs, tracking, returns |
Systems & Tools: The Tech Stack
| Tool | Purpose | Integration Points | Notes |
| Fulfillable | 3PL warehousing + fulfilment | Shopify, Amazon, eBay, Sage | Simplifies shipping and stock management |
| GoHighLevel | CRM, SMS, social outreach, email automation | Shopify, WhatsApp, Zapier | Replaces HubSpot for lower cost, greater flexibility |
| Shopify | Online storefront, product & inventory management | 3PL, GoHighLevel, marketplaces | Centralised product data & orders |
| Outscraper | Lead generation (e.g., micro-manufacturers) | Excel, CRM | Automated niche prospecting |
| Printful (optional) | Custom packaging design | Shopify | For branded B2C unboxing experience |
| Vapi + Make | AI outbound call & appointment setting | CRM | Warms up larger B2C clients for sales team hand-off |
Implementation Roadmap
Phase 1: Research & Validation
- Review and finalise tech partners (Fulfillable, GoHighLevel, Shopify)
- Prepare internal documentation for AI chatbot training
- Define minimum order quantities and pricing structure
Phase 2: Infrastructure Setup
- Set up Shopify store with full integration to Fulfillable
- Deploy GoHighLevel CRM and marketing automation workflows
- Connect all sales and inventory data to Sage
Phase 3: Pilot & Soft Launch
- Send test pallets to Fulfillable warehouse
- Launch limited SKUs on Shopify and Amazon
- Test outbound appointment setting via AI agent
Phase 4: Marketing & Scaling
- Launch omnichannel campaigns (Instagram, TikTok, LinkedIn)
- Launch social chatbots for 24/7 support
- Track KPIs: CAC, LTV, AOV, cart abandonment
Phase 5: Continuous Optimization
- Funnel qualified leads to SprocketWorks Sales Team
- Expand SKU range and market reach
- Introduce loyalty/retargeting campaigns
Visual: Transformation Flowchart
+----------------------+
| SprocketWorks |
| (B2B Wholesale) |
+----------+-----------+
|
| Pallet Transfer
v
+-----------+------------+
| Sprockets Direct |
| (New B2C Division) |
+-----------+------------+
|
+-----------+------------+
| Shopify Storefront |
| + Product Management |
| + Order Handling |
+-----------+------------+
|
v
+-----------+------------+
| Fulfillable (3PL) |
| + Warehousing |
| + Pick, Pack, Ship |
+-----------+------------+
|
+---------------+--------------+
| CRM + Marketing Automation |
| (GoHighLevel + Zapier Stack) |
+------------------------------+
Why This Will Work
- Low risk: No changes required in SprocketWorks’ current operations
- High reward: Increased margins, brand exposure, new customers
- Fully integrated: Data flows back to Sage for full visibility
- Scalable: Automation and 3PL allow you to scale without hiring dozens of new staff
