SUPPLY CHAIN HACK How cross border domesticated shipping could chop your shipping costs in half - Evolution Fulfillment
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SUPPLY CHAIN HACK
How cross border domesticated shipping
could chop your shipping costs in half.
Amidst trade wars and margin-killing Bitter Headwinds It would improve your chances of
shipping costs, this supply chain hack getting through the storm.
Unfortunately, it’s getting worse.
could very well save your on line store Supply Chain Hack
from failing. It’s a ·secret’ that every For Canadian companies of all sizes,
the trade winds have been blowing Here’s the good news. There’s a
Canadian e-tailer should know.
harsh Lately. Headwinds, in the form ·supply chain hack’ that savvy e-tailers
Interesting Times have been quietly sharing amongst
of tariffs imposed by U.S. President
“May you Live in interesting times” Trump against goods manufactured in each other in the online forums and
goes the ancient Chinese curse. China. have hit Canadian e-tailers hard, at meet ups. It’s called by many
Interesting times, indeed, for the increasing their shipping costs and names: Cross border domesticated
thousands of Canadian companies reducing their price competitiveness. shipping. Consolidated shipping. USPS
who sell physical goods online to U.S. wholesale. Basically, the idea is that
With a simple Google search, U.S.
customers. The rise of social media many smaller parcels get bundled by
customers naturally find a cheaper way
and turnkey ecommerce platforms Like a capable 3PL (third-party Logistics
to get what they want.
Esty and Shopify have created new provider) and then shipped over a
The end result is slower growth across border as a single shipment under
opportunities for savvy entrepreneurs
the Canadian retail Landscape in 2019. one manifest. After the parcels clear
who spot a gap. However, the
Arguably, there will be even greater U.S. customs. they are then separated
economics of shipping one-off parcels,
uncertainty in 2020 with a Canadian and injected directly into the domestic
especially Low value items. has never
election freshly completed and a U.S. postal system (in this case, the United
been great, particularly in Canada. The
elections due to take place. Between States Postal Service). Innovative
second Largest country in the world
trade wars and punishing Canada and tech-enabled 3Pls Like Evolution
boosts some of the world’s highest
Post rates, the intrepid e-tailer does Fulfillment. a pick ‘n pack fulfillment
shipping costs. In the best case,
their best to navigate the choppy seas company in Vancouver, has been
these high shipping costs erode your
towards success. Imagine if one had offering this new type of service to
margins. In the worst case, your store
the ability to simply inject parcels established Western Canada e-tailers
shuts down.
directly into the USPS: bypassing who ship across the Canada-US border.
Canada Post completely and accessing
USPS wholesale rates?
Evolution Group · Unit 216, 6901 - 72 Street, Delta, BC, V4G 0A2 · 1-888-656-2228 · www.evolvewithus.ca
WHAT IS DOMESTICATED SHIPPING? Evolution Group · Unit 216, 6901 - 72 Street, Delta, BC, V4G 0A2 · 1-888-656-2228 · www.evolvewithus.ca
Let’s assume you’re a Canadian e-tailer with Light weight. Canada Post vs USPS vs FedEx
Low value parcels (the economics of this supply chain hack
Let’s assume you need to ship a 5 Lb. parcel worth USD$300
greatly favour those who ship a Lot of small. Low value
from Evolution’s warehouse in Vancouver, BC, Canada to a
parcels whose individual value is $800 or Less) and Let’s
customer in Meridian, Idaho, USA Here’s a Look at actual
assume that you regularly ship to US customers. Here’s
quoted rates.
how you could ‘domesticate’ your shipments and get them
directly into the USPS at wholesale rates using Evolution Option Cost (CAD$)* Delivery Time
Fulfillment as your 3PL partner.
Domesticated Shipping $15.36 1 - 4 days
1. Collection: Evolution Fulfillment will collect your US- (via Evolution)
bound packaged parcels (or drop them off at their FedEx $23.88 2 - 7 days
fulfillment warehouse in Vancouver).
Canada Post $28.38 5 - 10 days
2. Consolidation: Your parcels are consolidated with other
parcels into one cross-border shipment with a single * Rates and delivery times quoted as of November 2019 and are subject to change.
manifest. Evolution handles all the warehousing, freight. Shipping a small parcel via Canada Post from a city in
cross-border paperwork, systems integration and Canada to a customer in America costs approximately
Logistics. CAD$29 and it takes 5 to 10 days to deliver. That same
3. Injection: Your parcels - each one individually trackable package, if sent directly through the United States Postal
- are then injected into the domestic shipping service via Service via Evolution Fulfillment. would only cost CAD$15
USPS, triggering savings up to 46% or more compared and would take just 1 to 4 days to get to your customer.
to Canada Post as well as faster delivery to your That’s 46% Lower cost on every single parcel compared to
customers. Canada Post.
In this hyper competitive world, a difference that Large
completely hamstrings the growth ambitions of Canadian
entrepreneurs.
These are actual quoted rates and delivery times. Half the
delivery time and half the cost? This is something that every
Canadian shipper with any significant volume should know.
Evolution Group · Unit 216, 6901 - 72 Street, Delta, BC, V4G 0A2 · 1-888-656-2228 · www.evolvewithus.ca
Should You Consider Cross Border Domesticated About Evolution Fulfillment
Shipping? Evolution Fulfillment is a Canadian third party logistics (3PU
Cross border domesticated shipping works best for provider with a main warehouse located in Vancouver, BC,
the Canadian e-tailer/ entrepreneur with the following Canada. Evolution offers pick and pack order fulfillment
characteristics: services as well as cross border domesticated shipping
• Is well established with gross revenue of greater than between Canada and the United States for brands,
CAD$250K per year particularly fashion, apparel. cosmetic and jewelry brands,
• Sells physical goods to U.S. customers who target the North American customer. Evolution
• Goods are Light weight and Low value pioneered the Brand Fulfillment Model; an alternative to
• Values detailed tracking data the traditional distribution model that keeps control - and
• Values fast delivery times margins - in the brand’s hands.
• Optional: Uses ecommerce platforms Like Shopify, Esty, Learn more at www.evolvewithus.ca
etc. About Wizmo Solutions
E-Tailer Alert Wizmo offers wholesale services for Canadian parcel
If you fit the above profile, then this supply chain hack distribution for businesses that ship from Canada to the
definitely deserves your attention. Right now, across Canada, United States as well as to international destinations.
Canada Post shipping Labels are being printed and dollars Wizmo’s clients include Evolution Fulfillment, a 3PL partner,
are going down the drain. The good news for e-tailers is that 3PL warehouses, enterprise retailers, transportation
something can be done about it. companies and ecommerce marketplaces.
Consider connecting with a 3PL that provide cross border Learn more at www.shipwizmo.com
domesticated shipping service and start slashing your
shipping costs. It could very well mean the difference
between skyrocketing success and fizzling out on the
Launchpad.
Evolution Fulfillment · Unit 216, 6901 - 72 Street, Delta, BC, V4G 0A2 · 1-888-656-2228 · www.evolvewithus.caYou can also read
