Order fulfillment powers global growth
The opportunity to introduce new customers to your products and position yourself as a ‘global brand’ can help create a strong standing within your market. There are many compelling reasons for expanding your business internationally, so it’s wise to carefully plan your brand positioning and product offering for the best chance of success.
While the pandemic and EU exit uncertainty contributed, and continues to contribute, to the erratic nature of UK and global trade, the outlook for cross-border direct-to-consumer (D2C) eCommerce remains on a positive trajectory. By 2026, the market is expected to reach 4,820 billion dollars and carry a Compound Annual Growth Rate (CAGR) of 27% through 2027.
For businesses who have done extensive research, identified a new export market that’s the right fit for their products, and have their sights firmly set on going global, what factors do they need to consider?
One fundamental part is order fulfillment. It’s a real balancing act to ensure you keep your current, loyal customers happy with on-time order deliveries while wowing and persuading customers to love your products in your new territory. So, to get the ball rolling, you’ll first need to…
Work out the best way to get your products from A to B
The international logistics and fulfillment strategy you decide on for expanding into a new market needs to be one that ensures the reliable and continuous delivery of orders to customers. How exactly you ship your products depends upon the country you are exporting them to.
Option 1: A cross-border fulfillment model
- Products leave one country to another
- Inventory is not stored in the country being shipped to
- Ideal for businesses whose international orders aren’t/won’t be a large part of their business model and want a more hands-on approach to managing their stock
- Easier to test success in the new market without a large upfront investment
Option 2: In-region entity with local fulfillment
- Products are stored in the country the business is expanding into
- Ideal for businesses whose market is local, but covers a large geographical area (e.g. the US)
- Reduces delivery costs and time in transit, making it a cost-effective way to handle international orders
- The business picks up custom tax/duties, so the end customer doesn’t get stung with a surprise bill
- Popular payment methods are easier to manage locally
- Returns are easier for the customer as they’re not dealing with international postage
- Third-party logistics providers (3PL) with local fulfillment centers in centralized areas can fulfill customer orders on your behalf, resulting in further time, effort, and money savings
Outsourcing fulfillment to support your international eCommerce expansion strategy
If you want to significantly increase your international sales, you may want to research partnering with a specialist logistics and fulfillment service provider. If there’s more demand for your products, and you have more to invest, you may be inclined to use more than one fulfillment center to extend your global reach quickly and seamlessly.
When a customer places an order on your website, your fulfillment partner will pick and pack the product/s (stored in their own fulfillment center), complete all the necessary shipping paperwork and work with their shipping networks to deliver it to your customer, on-time and in one piece. If the customer wants to return the item for any reason, they’ll deal with that too.
While you may feel uncomfortable with the idea of outsourcing a major part of your business operations, it doesn’t have to mean you’re completely hands-off. Specialist fulfillment partners will give you the technology and tools to have complete visibility of the order fulfillment process – some even offer ‘access anytime’ portals for your customers to track their parcel and initiate swift returns.
Ultimately, outsourcing is an efficient option as you can use the company’s infrastructure, expertise, and systems that are already in place and operational.
Expertise and contacts
A 3PL has the know-how when it comes to the rules and regulations of products in different markets, as well as export and delivery taxes. They’ll also have access to a network of reliable carriers, with preferential rates that can be passed on to you.
Working with their trusted carrier partners, a fulfillment company will ensure the timely shipment of your items, automate all of your orders and streamline the entire shipping process.
If you have cyclical/seasonal sales or don’t have the right infrastructure, outsourcing fulfillment responsibility will help you scale up quickly.
You’ll save on overheads and staff hiring costs (especially as demand increases), as well as packaging and shipping costs. Plus, these savings mean you’re giving customers more reasons to choose your products (because you can pass on cheaper shipping costs, or even free shipping, to them).
Because you’re not doing the logistics yourself, you can focus on building your business and your ‘bigger picture’ strategies.
Keeping order fulfillment in-house
There’s a long list of responsibilities when it comes to order fulfillment, as outlined above, but if you do decide to fulfill all customer orders in-house, be sure to do your due diligence.
It’s wise to undertake extensive research into the transport couriers who will be delivering your products in your new export market. Do they have a good reputation? Would you prefer to use a long-standing courier firm (which may cost you more), or a smaller firm, who may provide more flexibility?
Depending on the value of your products – and the speed at which they need to be delivered – you can use a combination of postal and courier options. Once you’ve decided, make sure you procure your courier in advance. Trading events that happen in the last three months of the year typically cause congestion, so prepare to increase delivery lead times for this busy period.
Check whether you need to create an entity in the region and conduct imports yourself, or whether you’ll need to use a third party to buy and import your products, without creating an entity. Tax implications and documentation required, especially post-Brexit, can be complex. Gov.uk provides plenty of advice in this area.
Whichever fulfillment model you adopt, and whether you outsource or keep everything in-house, by spending a good deal of time planning your international fulfillment and logistics strategy, you can ensure your products get into your customers’ hands quickly and cost-effectively.
Guest article originally written for WorldFirst.
James and James Fulfillment
It all began in 2010, when James Hyde and James Strachan couldn’t find a modern shipping service for the eCommerce business they ran. Faced with messy warehouses based on out-dated systems, they decided to build their own.
We’ve not stood still since, helping hundreds of online brands scale up – and scaling with them.
Stay up to date with insights & advice to help you build a bigger eCommerce brand
Subscribe to receive our latest updates in your inbox.