International E-commerce continues to evolve and challenge traditional supply chain models that rely on mega volumes of single sourced items transported via standardized containers to point of manufacture, distribution centre or retail outlet.
Due to low cost ocean transport and efficiency of standardized shipping containers, cross continent trading has lead the globalization of the world's economies. Globalization has also created an international trading culture that has is being empowered more than ever by e-commerce platforms and technology.
Disclaimer: The information in all Jet Worldwide online content, including this post, is for general information only
With the world “buying class” now counted in the billions, critical mass and global scale are necessary to compete. Traditional logistics supply chains exist to service the complexities of scale and just in time production systems. But the large scale containerized model of international supply chains do not serve the needs of the growing cross border e-commerce marketplace.
The weakness of traditional supply chains:
A significant portion of consumer products in exiting supply chains do not reach the rightmarket on time which results in unsold, unused merchandise. It is has been estimated that over 20% of retail products are wasted.
Using express consignment parcel importing to the USA, many items can be imported duty free using "section 321" entries.
Benefit from Jet's direct import options for e-commerce to the EU and UK.
US Customs allows most individual orders valued under $800 USD to be entered and cleared duty free into the USA. This entry type is known as a Section 321 Informal Entry. Using this entry type, importers can consolidate all their qualifying orders under one entry without H.S. Codes and benefit from duty free entry.
Most goods cleared via a section 321 informal entry are imported under Part 128 of the Code of Federal Regulations (CFR). As such, they are imported to facilities with port codes that define them as Express facilities or ECCF's. Many express operators are also able to clear via freight facilities (with section 321 processes) known as a Container Freight Station or CFS.
For importers who have H.S. codes, it may be best to use a Section 321 "type 86" entry. Using this entry type, goods can be imported via traditional methods using the Automated Broker Interface or ABI system.
Read more: Benefit when you ship via ocean to Canada versus air
Cross border e-commerce markets, by contrast, enable more direct efficient ordering of a low quantity of items. A key obstacle for trans continental e-commerce is the high unit cost of air transport and the lack of high volume parcel clearance processes in destination countries.
The challenge for international e-commerce
Lower Airfreight Cost
Increased transcontinental passenger connections provides increased freight capacity which often match up to the needs of parcel flows. For example, if there is a flight from Dallas to Sydney, there is likely potential parcel flows from Australia to the American Southwest.
Using traditional supply chains, products commonly travel thousands of kilometers unnecessarily which increases the carbon footprint and slows the reaction time to market. Using existing capacity made possible by passenger airlift opens up countless points of exit and entry. This also allows for low cost ground delivery by domestic carriers.
High volume parcel import processes
With the general lowering of duties and free trade agreements, the biggest obstacle to international trade is “non-tariff barriers.” Barriers to high volume parcel imports include:
High Volume Parcel Import Issues:
E-commerce technologies are evolving to calculate and pre-pay duties and taxes. In addition, new regulations in the USA allow for duty importation of e-commerce parcels. These technologies enable the buyer to know the true cost of their purchase by including transport, duty and taxes. This cost is referred to as the “landed cost.”
Companies can consolidate their orders via a single customs entry by becoming a non-resident importer. The process involves shipping via LTL or partial truck load (USA) or ocean (overseas), single clearance in Canada followed by domestic distribution.
Read more about valuation for duty and non-resident imports to Canada.
High volume parcel import processes are now largely the domain of the worlds leading private parcel carriers: FedEx, UPS and DHL. These carriers have extensive technology that speeds the transit of parcels to destination countries. While their integrated approach is effective, shippers are obliged to use their proprietary networks - which can be costly and restrictive.
Parcel Post Import
High volume parcel clearance processes are also possible using the postal systems but these systems are being challenged by large volumes and lack of investments in technology. The lack of transparency in postal networks is also causing security concerns in destination countries.
Postal "packet" services typically offer the lowest cost for international / cross border online orders. Contact Jet's team for updates on new direct shipping services direct to the UK, Europe, Caribbean, South America and all the world's major economies.
Simplified processing international returns.A Canadian address, consolidation and shipping back to the USA via low cost ground. Support for Canadian Amazon Removal Orders.
Direct Injection for High Volume Parcel Flows
A third option (and one promoted by Jet Worldwide) is direct injection of international parcels to the destination country. Direct connection will be possible when shared by a vast community of users. Using widely available commercial airlines cargo uplift, we envision high volume parcel import import processes opening up across the United States and Europe.
Currently, to the USA, Jet Worldwide has high volume parcel import processes in place in three main gateways: North East, West, and South. As international e-commerce parcel volumes grow to the USA, we expect to open up access to the the Mid-West and Southwestern USA. Direct injection allows for the most direct connection and the ability to use low cost regional delivery experts.
Jet Worldwide also works with leading euro-domestic carriers for direct injection solutions to leading European economies.
Realizing the Potential of International E-Commerce
To more fully realize the potential of international e-commerce, the physical connections of parcel delivery will have to gain maturity to match the virtual processing. Using direct injection, the physical travel of products will be distributed more evenly to local producers and end users and allow the sourcing of critical products from faraway suppliers.
The promise of e-commerce platforms depends on low cost direct shipping solutions. Contact Jet's team for updates on our shipping solutions for Shopify and other platforms.
The challenge of e-commerce is to help design new logistics flows for greater sustainability, higher quality of life and choices for the world’s growing consumer class.
At Jet Worldwide, our goal is to connect parcels, people and businesses around the world: To bring the benefits of globalization to businesses, economies and consumers everywhere!
..