March 2016 | Sponsored | Knowledge Base

Crossborder E-commerce Into the U.S. Just Got A Lot Easier – U.S. Retailers Should Take Note and Plan Accordingly

Tags: 3PL, Retail, Legislation, Public Policy, and Regulations, Asia, Global Logistics, Logistics, Third-Party Logistics, Supply Chain

Mark White is Chief Commercial Officer, SEKO Logistics, 800-228-2711

E-commerce retailers worldwide are celebrating the passing of a new bill, which sees the U.S. de minimis rate increase from $200 to $800. Below the new threshold, the U.S. does not require any formal customs procedures, and no duties or taxes need to be paid by the consumer. This creates a huge opportunity for e-commerce retailers who want to sell into the U.S.—not only because of the reduced cost, but also because it enables them to offer their products to a vastly increased audience.

Previously, any single import over $200 would need to have duty calculated, which varied depending on country of origin and on the goods being shipped, making the entire process extremely complex. The new higher de minimis rate allows for a far more streamlined approach, enabling foreign e-commerce retailers to see the benefit of faster customs procedures and border clearance, which in turn will accelerate the speed of international delivery, and mitigate to some degree the requirement to hold stock in the US to be cost and service competitive. For U.S. retailers, this changes the calculation modelling costs to fulfil e-commerce orders from offshore logistics hub locations.

Paperwork is reduced, as are compliance costs, making the entire process more efficient, and removing the barriers to U.S. e-commerce for global retailers. The consumer experience is also enhanced, as not only will purchases be cheaper, but delivery will be faster, and the entire process of receiving their goods will be streamlined.

This really is a game changer, that will lead to increased sales and accelerated business growth for e-commerce retailers worldwide. U.S. consumers are now much easier to reach, so whether you're looking to sell into this market for the first time, or grow your U.S. e-commerce sales order volumes, now is the time to do it. U.S. retailers should take note and evaluate how they can leverage fulfilling orders from Asia, Europe and other countries by using their 3PL's logistics infrastructure and know-how.

Shippers should be leveraging their partners for a complete solution which unites shipping, logistics, and distribution, with e-commerce website design expertise and innovative business software. This solution should include airfreight consolidation, allowing individual packages which fall under the de minimis threshold to be bundled together, no matter the destination, into a single airfreight shipment while still remaining duty free.

U.S. shipping labels can be printed in the country of export, and a full manifest customs declaration created, which details each line item and the value of each order separately.

This delivers an international shipping solution for e-commerce retailers that is around two-thirds cheaper than more standard providers.

SEKO Logistics is a provider of omni-channel logistics services. SEKO's lean and nimble structure increases their decision-making speed and gives them an ability to implement customized solutions. For more information, go to www.sekologistics.com.






Visit Our Sponsors