About LucyBalu
LucyBalu takes cats seriously—and their owners, too. Founded in 2019, this D2C brand reimagines cat furniture with timeless designs and durable construction. In addition to the domestic European market, LucyBalu recognized Switzerland early on as a strategically important sales market. Today, the brand sells here directly through its own Shopify store and the domestic marketplace Galaxus. To ensure an optimal customer experience, LucyBalu relies on a local fulfillment solution for fast-moving items.
Facts and figures
- Industry: Pet Supplies (Cat Furniture & Accessories)
- Focus: Design- and quality-oriented D2C brand
- Sales: D2C & Marketplaces
- Warehouse location: Germany
- Target Market for Expansion: Switzerland
- Product Line (CH): 600 SKUs
- Solution: Fulfillment in Switzerland & Cross-Border in Switzerland
The strategy:
From cross-border shipping to a local Swiss operation
For a premium brand like LucyBalu, Switzerland is an obvious market: Swiss consumers are said to have a strong affinity for design, a keen awareness of quality, and lower price sensitivity. LucyBalu recognized this potential early on and initially served the Swiss market through traditional cross-border shipping using international delivery providers from its central warehouse in Germany.
While this solution allowed for a quick and flexible start, it did not meet LucyBalu’s long-term needs: customs declarations were time-consuming, delivery times were long, and returns processes were complicated. For a premium brand, this represented a disruption in the customer experience.
Transparent pricing, pre-cleared customs (DDP), fast delivery times, and hassle-free returns are not just “nice-to-haves” in the Swiss market. That’s why LucyBalu was looking for a partner that could make its online presence feel as local as that of a domestic store.
LucyBalu was looking for a solution that:
- stores fast-moving merchandise locally in Switzerland and ships it as domestic shipments
- enables delivery via Swiss Post, a trusted local carrier
- offers a local return address in Switzerland
- ensures prices in francs, excluding customs duties, at your doorstep thanks to pre-clearance
- which could be expanded at a later date to include a cross-border shipping process for additional items.
MS Direct offers exactly what LucyBalu was looking for: local fulfillment for fast-moving items in Switzerland, as well as the option to expand the solution to include cross-border shipping. That decision has evolved into a partnership that has been in place since 2021.
Sebastian Frank
Co-Founder LucyBalu
We quickly realised that Swiss customers do not want their orders to be shipped from Germany, but rather delivered via Swiss Post. Setting up our own warehouse in Switzerland therefore made sense for us very early on.
The solution:
Part 1: Local E-Commerce Fulfillment at the Arbon Facility
MS Direct operates a local fulfillment center in Switzerland for LucyBalu. LucyBalu ships a specific selection of inventory—primarily fast-moving items—from its central warehouse in Germany to the MS Direct facility in Arbon. From there, MS Direct handles warehousing, order fulfillment, shipping, and returns for the Swiss market, covering orders placed through LucyBalu’s own online store as well as via the Galaxus marketplace.
Integration:
- Integration of the Multi-Markt Shopify store and the Galaxus marketplace
- DTC and marketplace orders are processed entirely through MS Direct
- LucyBalu can track inventory and orders in real time using the MS Direct Shopify app
Goods Receiving & Storage:
- Receiving shipments of goods from the central warehouse in Germany, including inspection of goods
- Putaway and posting in the system within 48 hours of goods receipt
- Inventory management for the approximately 600 SKUs defined for the Swiss market
Pick & Pack:
- Picking and packing Swiss orders directly from the local warehouse
- Individual orders in a branded LucyBalu box with high-quality printing for a consistent unboxing experience
- Orders with multiple items in standard cartons from MS Direct
Shipping & Tracking:
- Same-day shipping with a cutoff time of 4:00 p.m.
- Delivery via Swiss Post as the local carrier
- Attractive last-mile rates thanks to shipment consolidation
Returns Management:
- Local Return Address in Switzerland
- Receipt and Inspection of Returned Items in the Target Market
- Classification by MS Direct: B-grade merchandise is stored separately and resold in the store at discounted prices
Supervision:
- A dedicated Customer Success Manager as the first point of contact for questions
- Support for Process Optimization and Projects
- Trained employees are familiar with LucyBalu’s product line and processes
The solution:
Part 2: Cross-border Sales as a Complement to the Overall Product Lineup
For the rest of the product lineup—larger items or those sold less frequently that incur higher shipping costs—LucyBalu is currently working with MS Direct to set up a cross-border shipping solution. This creates a hybrid model: fast-moving items remain in local inventory, while the long tail is shipped via cross-border delivery directly from the central warehouse in Germany to Swiss customers.
The planned solution relies on the following cross-border solutions from MS Direct:
Classification:
- Automated Tariff Classification and Assignment of Customs Tariff Codes for Switzerland
- A uniform, legally compliant database for customs clearance
Customs clearance:
- Digital Customs Clearance Using the Appropriate Customs Procedure
- Audit-compliant storage of customs documents
International Shipping:
- International shipping from the central warehouse in Germany with delivery to local distribution hubs
- Delivery via Swiss Post as the local carrier
Sebastian Frank
Co-Founder LucyBalu
For five years, having a local warehouse in Switzerland was the right approach for us. Now, together with MS Direct, we are taking the next step and complementing it with a cross-border e-commerce solution to enable faster growth.
The result:
A local presence that meets the expectations of Swiss customers
With its local setup, LucyBalu operates in Switzerland as if it were a local brand. The cross-border approach used at the outset has given way to a model that meets the expectations of Swiss customers.
Delivery within 3 days via a local package delivery service
All Swiss orders are delivered the last mile by Swiss Post, the carrier customers expect. Whether from the local warehouse or via cross-border shipping, the goods reach the end customer within 3 days.
Local Returns Processing in Switzerland
Returns are routed through a local return address in Switzerland rather than being sent back across the border to Germany. For end customers, this makes the return process just as simple and familiar as it would be at a local store.
Faster Time to Market
With the cross-border add-on, LucyBalu can list new products in Switzerland from day one without having to wait for them to be initially stocked in the local warehouse. Sales and variants can be tested before inventory is tied up locally, and discontinued items no longer tie up dead stock in the Swiss warehouse.
A partner that grows with your setup
Since 2021, LucyBalu has been serving the Swiss market without having to set up its own warehouses, hire staff, or establish a carrier network. Because MS Direct covers both local fulfillment and cross-border shipping, LucyBalu can move to the next stage of growth with the same partner and choose a mix of local warehousing and cross-border shipping based on order size, product size, and product range depth.
Get started now with a logistics solution that's right for you.
„In over 18 years in the e-commerce logistics business, I have helped numerous online stores to grow and scale. I would be happy to help you too. “
Peter Egger
VP Growth