Cross-Border Fulfillment
The internet’s power to connect people globally has transformed how consumers shop – and where they shop from. With consumers’ ability to shop across the globe, the onus falls on logistics providers and sellers to fulfill orders in a timely fashion. This creates both challenges and opportunities for retailers to set themselves apart from the competition with efficient supply chain strategies.
For any retailer shipping internationally, navigating customs is often one of the biggest hurdles. Understanding the regulations of the destination country is essential to meet delivery expectations and protect cost margins. For many companies, working with a Licensed Customs Broker helps alleviate many of these issues. A broker can stay on top of all regulations and clear goods through customs so the seller can keep their focus on their daily operations.
Larger sellers also have a plethora of options once their goods clear customs. To keep up with growing demand, online retailers can adopt regional hubs or warehouses to cut down on long transit times when it comes to deliveries. Companies like Amazon rely on a vast network of distribution centers to support same-day or two-day delivery promises.
Bonded warehouses are another option for larger enterprises. These facilities offer benefits like duty deferral, inventory storage, and improved cash flow. Tariffs aren’t paid until goods leave the warehouse for final delivery, making bonded warehouses ideal for managing seasonal demand or bulk imports.
Meanwhile, retailers like Shein or Temu, and independent sellers on platforms like Instagram or TikTok, often take advantage of the “de minimis” exception when shipping into the United States. Under Section 321 of the Tariff Act of 1930, goods valued under a certain threshold don’t qualify for the same duties and taxes as larger shipments. This allows packages to be sent directly to consumers without needing to clear Customs – helping small-scale sellers compete with bigger players on price and speed.