logistics/ecommerce issue

United States United States
Kudos: 17
Joined: Jan 22, 2017
logistics/ecommerce issue
22 Jan 2017
I am based in Calgary, Alberta and my ecommerce business model is :-

I will build and operate a website in Asia.
Once people start buying from my website, I will have the order processed from retailers in the U.S . When I have considerable orders as in 10-20 orders, I will have them shipped overseas (I assume it will be once a week in the beginning) .
The problem I am facing at this stage is that I need a centralized location/address in the U.S where the orders will be shipped to. From here the orders will be packed into a larger carton. Ideally, it would be great if the orders are checked before they are packed, to ensure they are accurate orders and to rule out return orders to some extent. Are there freight forwarders who do that? Which city in the U.S would be most suitable? as in freight forwarding, taxes involved and handling.

Look forward to learn from your valuable suggestion.
United States United States
Kudos: 38
Joined: Jan 22, 2017
Re: logistics/ecommerce issue
22 Jan 2017
@JIMKURBY Wow, that seems really complex. If I were in your shoes I'd be looking at renting space and hiring someone locally. You just can't escape the overhead of fulfillment. You can pay less upfront by outsourcing to a service like Shipwire or Amazon but their fees are brutal for slow moving stock and, of course, they don't care about your particular situation so you have to do things their way.

Your setup really sounds too complicated for anyone other than you yourself to be doing it at the early stages then look for help only when you understand the workflow well enough that you can train someone else to take over.

Nottingham United Kingdom
Kudos: 3,439
Joined: Feb 21, 2014
Re: logistics/ecommerce issue
24 Jan 2017

I have to agree with raisel, it may be better to get a lock up or storage unit and do it yourself to start with.

Can you not get your US based suppliers to ship direct ?

Not only do you have to think about the time involved - place order with US supplier, they prep, pack and ship to central US location, they receive order, check and repack into larger container, wait until enough orders, send to central location overseas, customs clearance / fees, unpack, repack and ship to final destination - but the cost. Obviously without knowing the products, sizes and weights it is impossible to say, but sometimes shipping direct is more cost effective.

As an example, it is cheaper, by around 30%, for us to despatch the majority of our products from the UK direct to individual customers in France than it is to use the major fulfillment networks over there such as Amazon and CLogistique. However the advantage of next day delivery and local pick up points is a big benefit when using these channels.

The more people / companies involved in the supply chain, the more costs involved and more chance of orders going missing / getting damaged and then who takes the blame ?

If you are sure your model will work, I wish you luck.
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