E-Commerce: Ad hoc aggregate demand

Retailers around the world are rushing to adapt to the new challenges - and opportunities - presented by cross border e-commerce.

• Traditional retail challenge = Managing the purchase, transport and inventory of large bulk orders
• New e-commerce challenge = Managing demand that is aggregated in real time by on-line purchases of goods sourced everywhere.

Jet Worldwide helps retailers develop high volume parcel import processes to the USA including duty free express (ECCF) clearance via section 321 and final mile delivery.

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How to handle "ad-hoc aggregate demand?"

The benefit of traditional large wholesale purchases is the low unit cost made possible in production and transport. The unit cost of ocean freight, for example, is a minimal versus the cost of sending an individual parcel.

Sending items sold on line direct to the USA

The higher cost of sending individual parcels (versus bulk ocean/ rail/ trucking) if offset by lower inventory costs associated warehousing. Direct cross border e-commerce has lower fixed costs and the marginal costs adjust quickly to changes in demand.

an entry type referred to as "section 321" most goods valued under $800 can be imported duty free. This simplified processing also eliminates the costly entry process of assigning HS Codes, duty rating, drawbacks and other complexities.

Jet Worldwide helps retailers develop high volume import processes to the USA for shipments valued under $2,500 US using consolidated entry processes.

Last Mile Delivery

Increasingly, there are new last mile solutions to the USA - especially to large metropolitan areas. Alternative last mile solutions serve as a complement to USPS, FedEx/ UPS ground deliveries.

E-commerce parcels growing in size

To date, cross border e-commerce imports to the USA have been dominated by small postal packages valued under $50 USD. However, with multiple ports of entry and section 321 express clearance consignment clearance, it is possible to import heavier and more valuable e-commerce parcels to the USA.

Contact our team to discover and implement direct import processes to the USA

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