Despite the unavoidable duties and taxes that have to be paid, there are actually benefits to shifting to a model whereby you warehouse goods in the U.S. and then fulfill orders domestically.
“I want to strike a balance here between seeming to sugar-coat the situation, and giving realistic advice,” cautions Leonardo. “The main thing I want to tell you is this: I have heard companies saying they’re going to have to exit the U.S. market because of the removal of De Minimis. They really don’t!!”
Leonardo explains the benefits of moving your e-commerce fulfillment to the U.S. “If you warehouse your stock in the U.S. and fulfill orders from there, you’ll find there are some clear advantages.”
1. Service levels:
You can improve your service levels: in other words, you can deliver more quickly and reliably.
2. Last-mile costs:
You can reduce the cost and carbon footprint of your last-mile logistics, as your stock will already be based closer to your end consumers.
3. Returns:
Your returns will be so much easier to handle from both an administration and a logistics point of view.
“When you weigh the increased costs of duties and taxes against the savings you can make elsewhere and the improvements you can pass onto your customers, you can see that shifting to a U.S. fulfillment model makes a lot of sense,” says Leonardo.