Canada has experienced about a 21 percent increase in first-time online buyers becoming frequent ecommerce shoppers in 2015. This could be a sign that any logistics company will have an increase in revenue.
eCommerce Sales Predictions
In 2015, about 41 percent of Canadians already considered themselves occasional online shoppers, and this number appears to be growing every day. Many of the merchants are from other locations such as the United States, so this could mean more opportunities for international supply chain consultants.
International shipping is likely to continue. However, there are concerns about how much deliveries will cost when crossing the borders. In any case, efforts are being made to provide the best possible prices to Canadian citizens for American products.
Common Online Shopping Concerns
Besides security, convenience is one of the top concerns that online shoppers have. For instance, 35 percent of Canadians abandon a shopping cart. However, they reportedly say they do so if shipping costs are miscalculated upon checkout. Therefore, the warehousing companies who deliver to Canada will probably increase profits if they provide accurate shipping information. They also are more than likely to keeping ordering online if the merchant has a seamless, checkout system.
Another important priority for online shippers is exchanges and returns. This, in fact, is a universal priority and not just for Canadian citizens. People are only limited by what they see in photos and videos along with online descriptions when they order items. Therefore, they want to know if they can have their money refunded or merchandise replaced if an orders is not fulfilled as planned.
International Versus In-Country Fulfillment
One type of international shipping is called Delivery Duties Unpaid, which involves shipping items with no duty cost to the consumer. However, DDU shipments usually results in additional fees owed upon receipt of item. For instance, the customers might be required to pay for customs, brokerage fees and sales taxes not yet calculated.
Therefore, warehousing companies might instead use Direct Entry Fulfillment. In this case, the shipping fees usually reflect the cost of delivery based on the destination country’s fees. This type is also known as DDP, or delivery duties paid. On the contrary, all orders could be shipped using In-Country fulfillment. This involves offering items that are only obtained from Canadian supply chain consultants. For more information, 3PL Links is a helpful website with additional resources.
Although less expensive international shipping services are becoming more popular, ordering directly from the destination country usually seems to make the most sense. It usually makes shipping to a location within that location easier.