How The Blue Space Used Shopify Capital to Boost Sales 20%

Introduction

In early 2023, The Blue Space, Australia’s premier renovation retailer, hit a critical roadblock: stock shortages spurred by global supply chain delays. Customers demanded quick delivery and transparent inventory status, but unpredictable supplier timelines led to lost sales and frustrated shoppers. To solve this, founder Joshua Mammoliti turned to Shopify Capital—a financing service built into the Shopify platform—to fund large, early inventory purchases and secure a reliable stock buffer.

The Challenge: Supply Chain Disruption

Before the pandemic, The Blue Space managed just-in-time inventory with minimal storage costs. After 2020, however, shipping delays, material shortages, and escalating freight fees meant that products often arrived late. If an item wasn’t in stock, a competitor with availability would win the sale. With only limited working capital, ordering bulk stock months ahead was off the table—until a new financing option came along.

The Solution: Shopify Capital’s Flexible Funding

In March 2023, The Blue Space applied for Shopify Capital directly from its Shopify dashboard. The application took hours rather than weeks, with minimal paperwork. Within a day, Joshua finalized terms: repayment as a fixed percentage of daily sales. On busy days, more would be paid; on slower days, repayments shrank. That structure created breathing room for marketing campaigns, new product launches, and peak-season stock planning.

Over four rounds of funding, The Blue Space invested heavily in top-selling lines and new product categories. Extra stock meant no more “out of stock” messages on the website. Customers clicked “buy” with confidence, knowing items shipped quickly from one of three warehouses in Sydney, Brisbane, and Melbourne.

The Results: Swift Growth and Margin Gains

The impact was immediate. Year-over-year sales revenue climbed 20%, average order value rose by 6%, and gross profit margin improved by 8%. Faster fulfillment reduced order turnaround time by 60%, lifting customer satisfaction scores. Confident in this model, the team is already planning more warehouses across Australia and into New Zealand—funded by repeat Shopify Capital offers.

Key Insights

• Quick-access financing can transform inventory strategy when supply chains are unstable.
• Custom repayment schedules tied to daily revenue reduce pressure during slow periods.
• Bulk purchasing at lower freight rates helps protect profit margins.
• Multiple funding rounds allow gradual scaling and repeated inventory boosts.
• An integrated dashboard streamlines fund tracking without external accounting hurdles.
• Expanding to new warehouses improves geographic reach and delivery speed.