In a previous article, we looked at cross-border e-commerce and the key logistics requirements to ensure it can be carried out effectively. When your international growth is exponential, to continue to offer an optimal quality of service to your customers, a solid logistical setup needs to be put in place. This may lead you to decide to relocate your operations but this decision should be well thought-out.
Linking supply and demand
Before deciding to relocate your logistics and determining your location, one of the first questions to answer should be the management of last mile shipping. How long is your customer prepared to wait for his order? For certain, more exclusive products, consumers will accept to wait a number of days. It all depends on their preference and the type of product they have bought. E-traders also need to consider the possibility of optimizing the quality of their service, including during peak periods. With an intelligent order processing solution, they can not only facilitate the returns process but also refine their tax and customs strategy. Taxation can result in prices varying by up to 20-30 % depending on the location of the product. When importing e.g. to Europe from abroad , individual consignments of goods with a value of up to 22 Euro incur no VAT or import duties. However, between 22 and 150 Euro (included), VAT applies but no import duties are due. To prevent your customers having to deal with these tax issues, you can also decide to opt for DDP solution (delivery duty paid).
What resources should you use?
When you finally make the decision to relocate your logistics and appropriate locations are identified, you then need to ask who will be responsible for the process. Several setups can be considered :
– You can choose to be your own logistics provider and to internally manage the logistics of a new storage warehouse in another country. But experts warn e-tailers who are tempted to choose this solution to be careful; it is not necessarily a wise one and investment costs are significant.
– You can choose to use a local logistics provider. Once again, with this solution there are some disadvantages, particularly for the e-tailer. To name a few: owing to a different culture, difficulties in understanding the logistics provider and also being confronted with increased numbers of sub-contractors and people to manage.
A global logistics provider with a local presence
Being able to rely on flexible capacity leads e-tailers to outsource their logistics activity to a professional partner with an appropriate software tool, who can manage greater volumes and who can cope with seasonal variations and particularly with shipments to different markets.
As you can see, in light of these questions, it is important to consider your options carefully. Given that it is very difficult to fulfil your own requirements in terms of logistics, it is important to be able to count on professionals such as Landmark Global who combine global coverage with a local presence and in particular local knowledge, without multiplying points of contact.