14: e-Commerce Unpacked: 2024’s Top Lessons & 2025 Strategies

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This is Outside the Box with Asendia

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USA, a podcast educating US based brands, marketplaces and e tailors on international shipping.

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Topics and how they can expand their.

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Global e commerce footprint.

Sharvon Hales: 00:00:13

h highlights from some of our: 2024

We kicked off our podcast with a discussion on the nuances of e commerce shipping to Canada, how highlighting the challenges and best practices for US retailers. Dave Mays, CEO of Broad Reach an Asendia company shared his extensive knowledge on the importance of understanding the Canadian market.

Nick Agnetti: 00:00:38

Dave, I have a question for you.

So one of the big themes that I've been discussing with customers on a customer facing meaning talking with the online retailers as subscription boxes is the focus of the customer experience.

I do want to talk a little bit specifically about what you've created, you and your team have created with the broadreach network and how you guys are able to improve the customer experience over let's say something like a, an integrated courier like the FedEx or UPS or even you mentioned Purelator. Could you talk to that for a couple of minutes?

Dave Mays: 00:01:10

Yeah, it's a little bit of a, of a careful description.

And the reason I say that first off there's no, there's no formulas in shipping, there's nothing that's proprietary, there's nothing that we're doing that is an invention of some cutting edge service that no one's going to be able to replicate. But there are some best practices and some things that we do with our transport network.

There are some ways that we clear customs, all forward thinking and compliant. There's bond utilization, there's all sorts of cross docket partner network connecting that we do to achieve the outcome that we have.

And we want to continue to describe that. We want to continue to have merchants trust us and we want to continue to beat the competition in terms of service quality.

At the end of the day we have the fewest number of touches, the fewest miles or kilometers travel and the lowest cost, most efficient network after two years for us to Canada straight away. Now some of that is related to our size.

We don't have trains, planes and automobiles that are running all over the North American network like some of the large integrated couriers.

We were very surgical, we were very precise in how we set up the network and we did it based on a post Covid era which is we'll just say things were getting a little bit frothy there in 21, 22. So a very fresh approach. We really focused on middle mile, we focused on middle mile speed.

We focused on getting to all the major cities in Canada, whether it's ground or air.

We have a fantastic partnership with Air Canada that reaches anywhere between eight and 12 major cities in Canada for an expedited product that's very successful.

We're working with these alternate delivery providers moving times around to have preferential service picking up one, two days depending on the province, depending on the U.S. origin shipping point. Again, all end to end in terms of not only custody but also visibility and transparency to those packages.

The customs clearance process. Probably don't want to go into too much detail on this because you will definitely bore the listeners. But we have automated it entirely.

We have bonded trucks and bonded facilities.

We do an electronic release and anytime there's an inspection, we rifle through what we call, I guess containers that are, that are marked with those parcels. We pull the whole, the held parcels and everything else flows through.

So even if there are inspections or, or holds or delays, it only would affect these small parcels that would be targeted. So we've built operation technology and a system to we think compete with even the express carriers.

I mean some of the markets out of the US that we're getting service into Greater Toronto and or eastern Canada out of the Northeast in the US are faster than you could get if you actually flew it on a plane that went through Memphis or Louisville and had a delivery by a purple tail or a brown van.

Sharvon Hales: 00:03:48

In Episode five, we delved into the intricacies of navigating the global e commerce landscape, particularly as it pertains to subscription based businesses.

Our guest, John Haji, who is the co founder and head of partnerships at Subsummit and a recognized authority in the subscription industry, used his extensive background to highlight the importance of strategic planning and execution when expanding a subscription business across borders.

Nick Agnetti: 00:04:15

ubscription box market ending: 2023

The physical box space. I don't really want to spend any time today on digital, if that's okay. Talk more about the box market in particular.

John Haji: 00:04:43

Yeah, I mean look, it almost seems like there's a subscription box out there for everything. Sponges, toilet paper, men's fashion access.

The food and beverage space seems to be a space that is growing exponentially year over year, I think what you'll find in the subscription box space is anybody that's incorporating some sort of product that is replenishable and depletable is seeing a lot of success.

And, you know, E commerce and consumer brands that have a product that is consumable and depletable and replenishable are looking for ways to pivot into the subscription model. And so that's where you're seeing a lot of growth. I mean, yeah, you know, it. Sub Summit, first year, 200 people this year on pace for 2,000 people.

So we've been seeing growth across the subscription industry as a whole.

Nick Agnetti: 00:05:28

Yeah. And that. And congrats to you and Chris and the team on the success that you guys have had as well.

You know, and I look to myself and between myself and my wife, you know, the number of subscriptions that we have, and I mean, every house is filled with something at this point. JW is just talking about his wife. Just got something the other day.

I forget already what the name is, but it, you know, we don't need to throw out any names here on this. But more importantly, importantly, it's just to talk about, you know, people look at.

Oh, I think oftentimes that I'll talk to people that are outside the industry and they'll say something like, is this, you know, oh, are this. Is it a fad? You know, the subscription bot. I'm sure you've heard that it is certainly not.

John Haji: 00:06:04

No, it's certainly not. I mean, like, there was. There's always a time within every industry where the question is like, is this bubble gonna burst? We're not seeing that.

Right. It's not a fad. It's only growing exponentially.

I mean, the Trends, you're saying 33 billion in the subscription box space, but the subscription industry as a whole is gonna hit 2 trillion do dollars in the next few years. So it's not a fad. I think we're seeing more and more again. It's, it's, it's nice to see.

But you even see some of these enterprise and legacy brands figuring out ways to kind of pivot into the subscription model. Because who doesn't love recurring revenue?

Sharvon Hales: 00:06:37

In episode six of Outside the Box with Asendia USA, we discussed a crucial topic of international returns, specifically focusing on the Asendia e-PAQ Returns product with insights from industry experts Helen Scurfield, CEO of Asendia Global Returns, and Aria Loney, our e-PAQ Returns Manager at Asendia USA. The discussion covered how retailers can improve customer experience by simplifying returns.

John Walsh: 00:07:02

What is your definition of easy returns?

John Walsh: 00:07:05

What does that exactly mean for a shopper?

Helen Scurfield: 00:07:10

Okay, I think for me it's really about making it as simple as almost returning it to a store or that domestic experience. There's a view that international returns is not simple. You know, you've got customs in the way, items have got to travel a long way.

It's then it's expensive, but really from a retailer perspective, it's selling to a consumer and then for that consumer just to be able to send it back, to be able to get their refund quickly, to be able to see that their item is making it back to the retailer because they just want the money back and then potentially shop again or whatever.

So the more barriers you put up because maybe they've got to fill in paperwork or mail it back, go to the post office and stick it in the mail and pay for it themselves, it starts to deter people.

And it's really about making that experience just as easy as possible so that you can, you buy, you try on, doesn't fit, don't like it, and back it goes really as simple as taking it back to the store.

Nick Agnetti: 00:08:08

So how do we position it in terms of positioning towards mid market level clients in terms of more of their profile and also enterprise level customers as well? You know, if you guys could speak on that for a minute, that would be I think very important.

Ari Aloni: 00:08:22

I don't mind taking this on, Helen, if you want or.

Helen Scurfield: 00:08:25

Yeah, go ahead.

Ari Aloni: 00:08:27

No, yeah, you know, I think, I think that is a very big pain point, Nick, specifically.

You know, I think a lot of smaller retailers don't want to deal with it just because of the fact that it's a, you know, they may not have enough volume or, you know, there's not a lot, a lot of, you know, a lot of the solutions are kind of like plug and play essentially, which may not be fit their needs.

But you know, I think the way that we can combat that is to have more of a discovery process for each retailer and we kind of go to the retailer and we understand their needs and what they do today for return if they do any returns before we come to them with what we offer fully.

So to understand the end to end process, see what their pain points are, see what they would like to improve on and then we can take that information internally, look against what our end to end solution offers and what capabilities we have and that can give us the confidence to go back to the retailer and offer them a viable return solution that works for Them.

And going back to my point, with the destruction and donation opportunities that we do have in country without clearing the other customs headache that a lot of retailers don't want to deal with, we can lower some aspects of cost there and that could probably be very beneficial for those smaller accounts, smaller clients.

Sharvon Hales: 00:09:43

In episode 10 with our special guest and now co host Jason Rowland, who is Asendia's risk and compliance officer in North America, we talked about how HS codes are vital for online brands looking to expand their global e commerce footprint as these codes ensure that shipments are properly categorized, taxed and compliant with import regulations.

Nick Agnetti: 00:10:04

One thing that's very vitally important though is understanding the importance of HS codes.

So Jason, can you talk to us a little bit about what they mean, what they represent, what the actual digits mean to different countries, different things. Yeah, all things.

Jason Rowland: 00:10:19

Obviously, when you're moving things internationally, there's ways that countries do import and export regulation. Okay.

And one of the things that they have to do is make sure that the item that you're sending is properly coded, is properly taxed, is properly dutied, is safe to be transported on a plane, safe to be transported via ocean or however the route is that you're looking to move it. They need to make sure that the item that they're moving on your behalf is known.

Nick Agnetti: 00:10:46

Okay.

Jason Rowland: 00:10:47

So one of the ways that they do that is they have this system called the HS code system. It's a harmonized tariff system globally, right? Yeah. And the first six digits of that code are an HS code.

And that code is going to tell the inbound customs authority exactly what this item is that you're sending. Is it clothing? Is it a mahogany table? Is it a fridge?

Whatever the item is, is going to have a code associated with it not too far removed from like a SKU or a barcode that you would imagine would be necessary to do that kind of a transaction. It's an individually specific number for each type of item that they know. This is what we should expect to see in this box if we were to open it up.

Nick Agnetti: 00:11:28

It's an interesting perspective.

Jason Rowland: 00:11:29

Yes. Because those first six digits are going to be the item. Right. That's going to be generic, universal, to standardize every country.

They all use the same six digits after that. Right. You can get more specific. Okay. And then those are where we get into the up to eight digits or up to 10 digits.

And those are for more country specific items where countries will have different interpretations of the types of items that they will and won't accept. Right. So Some countries. I can send dog food from the United States into some countries and I can't send it to other countries.

Nick Agnetti: 00:12:03

Like Canada.

Jason Rowland: 00:12:03

Like Canada specifically, yes.

Jason Rowland: 00:12:05

Store.

Jason Rowland: 00:12:06

So if those 6 and 8 digit extensions of an HS code are country specific and really let them get granular on. On. Yes. This is a cotton T shirt, but it's a 50% synthetic blend as opposed to just a straight cotton T shirt. Sure.

Or it's made from other agricultural byproducts like silk or, you know, something that is either chemically made or something that is naturally occurring like fur or silk or something like that. So it allows you to get really granular on what your item is so that it can be taxed properly, so that it can be imported properly.

And then everyone knows exactly what they're expecting. Because there's obviously different thoughts on, on agriculture. Right.

If it's an animal byproduct or something like that, they don't want it or they, they do want it or they want to charge more for it or that kind of thing.

Nick Agnetti: 00:12:59

I mean, what's the latest on the fur trade?

Jason Rowland: 00:13:03

Yeah, you wouldn't think that it would be one of those things that would still be around or would still be necessary, but yeah, it's, it's. You can't, there's some countries where you can't just pick up and send them a fur coat.

Sharvon Hales: 00:13:13

We wrapped up: 2024

Nick Agnetti: 00:13:34

You know, there's a huge audience and especially if you're in the fashion space, skin care, cosmetics, you know, any of those really, those direct consumer goods, there's a huge opportunity to grow and expand. So any, any thoughts on that?

Simon Batt: 00:13:49

Yeah, lots.

I mean, one of the things you said which makes a lot of sense and especially just, just thinking about from a US perspective, of course, is that the US as a destination market is one of the top destination markets.

If I talk to my team members in uk, in Europe, in Asia Pacific, what they're all talking about is how can they link their retailers and their customers with shoppers in the US to a certain perspective, putting on a kind of a frame of a US E commerce retailer point of view, you're going to face, whether you like it or not, in a nice way, you're going to face increasing competition from retailers selling to US shoppers.

So that global game, whether, whether it's local, whether it's regional, whether it's intercontinental, that's the way people are going if they're looking for growth when economic times globally are a bit tough by definition. My conviction is that the retailers who are looking to grow are going to look to new markets and the US is a new market.

For some non US retailers, the opposite applies. If you're in the US looking for growth, then starting to look at new markets is, is super important.

And of course you've got some, you've mentioned some good ones, Nick.

You know, you've got Canada and Mexico, let's say, on your very, very big doorstep obviously, but on your doorsteps you've got significant flows to the, to the uk, to Australia, to New Zealand. You've then got the European Union where you can sort of enter as a kind of have it as a package deal, if you will.

into: 2025

And of course there's some things here as well just to comment on around yes, it's obviously about accessing customers, but there's just a, I guess a word of advice as well on technology because when you're starting to access different markets, of course you need to start thinking about language, payment methodologies, do you need cash on delivery? How do you manage foreign exchange conversions? How do you ensure you can incorporate duty and tax calculation into your checkout pages?

And those are some of the things that you know as you go through that journey. It can get quite complicated with some markets, ID collection, for example. But there are people out there that can help. We're one of them.

But having companies that can help you help you navigate that complexity to source new customers and new markets I think is super critical.

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Learn more about today's topic or for a free consultation, email us@ecommerce USAendia.com Come back for more insightful discussions on ecommerce shipping to Canada, Mexico and worldwide.