For anyone selling online, the lure of new overseas markets can be tempting, but perceived as expensive. While it’s true that a marketing push may be required to gain traction, the internet and e-commerce give businesses an incredible opportunity for growth.
Dealing with international sales does bring with it some logistical complications. The international parcel distribution model has historically been complex – but it is changing.
A typical international package has followed a hub and spoke model of distribution; multiple flights and handling, as items are moved from flights to warehouse and on again. This method has been necessarily hands-on but it came with the pain of additional cost, increased likelihood of damage, and longer lead-time, from order to delivery.
Retailers also suffered; potential customers were put off by expensive international shipping costs; according to E-Consultancy in 2012, 55% of shopping-cart abandonments occurred due to high shipping costs. The same report found the lack of clear information around delivery was also off-putting; the longer the perceived delivery time, the less likely a customer was to buy.
These days, retailers old or new shouldn’t be put off by the costly, complex arrangements of the past. A new model of ‘direct entry’ international distribution takes advantage of the postal network to deliver a smart way to expand into global markets.
The parcel can now be pre-labelled in the UK for the destination postal network; meaning it can be distributed via a single flight to the port of entry and injected directly into the local system. Lead times are competitive and the risk of damage is reduced.
Good rates and solutions are available for e-commerce retailers, and they are low cost, making entry to new markets easier. The low rates also appeal to customers, reducing the rate of shopping cart abandonment and delivering confidence by providing clear delivery times.
This method allows for simple invoicing, integrated customs declaration, a door-to-door delivery for the end user and is an ideal solution for e-commerce operations to expand into key international markets both in Europe and the rest of the world.
Expense Reduction Analysts have identified a range of suppliers that can now offer this service to our clients. Talk to one of our specialists to explore what’s possible, or for a wider discussion around your current e-commerce arrangements.
An example…
With a recent client, we were able to generate significant savings on packaging by finding a more efficient pack design that reduced the overall pack size. It had the knock-on effect of allowing 15% more product into each load, with the net effect of reducing both the amount of vehicles on the road by 1 in 7 and reducing their carbon footprint.
Article by: Simon Perkins