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04 part 2: Cross-Border Shipping to Key e-Commerce Markets - Canada, UK and Australia
Bonus Episode • 17th April 2024 • Outside the Box with Asendia USA • Asendia USA
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::

Welcome back to Outside the Box

with Asendia USA.

::

This is Nick Agnetti and I'm John Walsh.

::

We continue our previous conversation

about the top three global e-commerce

::

markets for U.S. shippers to target.

::

Okay, let's pivot... UK.

::

So UK is, you know, our second largest

what we as a organization

::

in terms of our exports.

What are they on your notes there globally?

::

Excuse me.

::

I will take care of the notes. No problem.

::

So what we've got here is an again, data

::

December 2023, the most advanced

e-commerce market in Europe

::

Revenue, which I love the name, is is being

remitted and reported to Her Majesty...

::

Her Majesty's Revenue and Customs.

::

It's the third largest e-commerce market in the world

underneath China in the United States.

::

And the the output annually is

::

estimated at $169 billion with a B.

::

Well, yeah. Wow.

::

And so what we're looking

so any of these markets

::

that we mentioned today,

which is also interesting.

::

So if you're a seller listening

::

and you're thinking,

he just talked about, you know,

::

my section, my sector business,

So top, I think it's six

::

or seven areas of exports

or however you... imports, if you want to call it.

::

We're looking at electronics, fashion,

::

skincare, cosmetics, self-care,

hobby and leisure.

::

Feel like those last two

are a little broad,

::

but the first four are pretty specific.

::

So, I mean, we see it

all the time, all day long.

::

Apparel, skincare, all those guys and they're

all doing a good amount of business

::

to, again, these more affluent,

::

developed and really top ranking countries.

::

And the UK has some stringent...

Yeah, they have specific rules.

::

VAT rules because of everything

that happened with Brexit.

::

Because they're not officially part

of the the EU member states.

::

Right.

::

And so they require any seller

that's selling into,

::

you know, to Canad... not

Canadian, UK customers

::

to register and remit, collect

taxes, collect

::

VAT and then remit

those funds on a regular cadence.

::

And that's but it's also self-monitored.

::

So there's really no official policing

at this point that we're aware of.

::

It's very interesting situation.

::

And the VAT’s, you know, it's 20% VAT.

::

Yeah.

But...

::

Go ahead.

...the service to the UK is fantastic.

::

It's fantastic.

::

So to that point is, what we see

average four days?

::

Four to five business days.

It's amazing. Door-to-door.

::

Oh yeah, process to delivery.

Full tracking, visability,

100%.

::

Yeah.

It's a beautiful thing

Some things I was looking at

::

so our parent company Geopost

has a website, they have a barometer on there,

::

an e-shop barometer. Like they...

That’s a great tool.

::

They post what...

That’s cool.

...each individual countries habits are.

::

So some things that came up that were

a little different with the UK.

::

And I think it's more

because there's a lot of brownstones

::

and their tight neighborhoods

and things like that,

::

and the deliveries.

Free shipping was number one.

::

Oh.

Number two was no hidden fees at checkout.

::

They like to see the complete delivery who that's going to... how that's going to...

So the final mile carrier?

::

Correct.

Okay.

::

Choice and speed of delivery.

So they like a choice in the shopping cart of

::

to your point because I think

these transits are so good.

::

I think there's some options there

that are more... some are postal,

::

some are commercial. Right? Sure.

::

The fifth one was clear return policy,

which I thought was interesting.

::

That is interesting.

::

And it was a very

::

when I looked at some other countries,

they were much higher

::

in these five categories, which is,

::

I wouldn’t say the word interesting.

::

I thought it was

::

to your point is they're different

than everybody else over there.

::

They have a different look of way it is.

::

But again, I...

::

I don't see them as challenges,

::

but I see them as opportunities

for most shippers in the US. Right.

::

There you go.

Yep, yep.

Turn that frown upside down.

::

So the other thing I want to add on to

that too, is what's different than,

::

and again, we're talking today

about Canada, Australia, UK,

::

so UK VAT rules

::

or you know, duty and tax rules

when you talk about de minimis,

::

again my Latin term that I mentioned earlier

as a as a true scholar,

::

what what I'd like to highlight is that

there is no de minimis for the UK, right.

::

It's not.

::

So taxes apply on everything

starting from zero all the way up.

::

Duties don't apply until you get

::

up to 150 GBP and then at that point

you've got taxes and duties.

::

Now we're not... there's no provincial differences.

::

It's a straight, you know, 20% VAT tax

and typically a shipper would have

::

and you talk about landed

costs and details and a better experience

::

and such would have it broken down

at the time of

::

when you're purchasing,

when you go to checkout,

::

they would have the the merchandise,

the goods cost, they'd have it

::

you know, what the taxes are.

Right?

::

They'd collect that

at the time of checkout,

::

then they'd have the shipping costs,

then you got your total cart.

::

But UK really, I mean with Brexit

and everything they did there, that

::

I mean it is simple, there's no de

minimis and again 150 GBP and over

::

duty and tax.

Awesome, awesome.

Pretty easy.

::

Let's talk about the last country

which is Australia.

::

Last, but definitely not least right?

Yeah very large economy,

::

very large buying power.

Have very high de minimis, right?

::

Can order a lot of merchandise.

::

Interesting enough

they love buying from the US.

::

They really do.

Obviously probably because of their de minimis,

::

but where they can buy a lot of product.

But you know they're very consistent...

::

I did notice in some stuff from...

that I was reading, they're very big

::

into health care, health and wellness items...

Yes.

...and apparel.

::

Self care.

I don't think that's a surprise.

::

Most companies, most countries

are in those two topics.

::

But these, those two particular verticals,

they're big into.

::

Is that what your experience has been?

::

I know you have a couple large

customers like that.

::

Skin care, fashion, self care, all those things

are huge for Australia. Yes.

::

And, you know,

::

let's go back and I seem to be just

spitting out facts this episode here.

::

That's my job.

::

But I don't use, you know, talking terms.

::

I mean, just give you numbers.

Alright we’ll switch it up this time.

::

Got on the Goog machine

before we get started and here we are.

::

So 11th largest e-commerce

market in the world.

::

GST rules that we will discuss

st,:

::

So quite a while

it seems like like a lifetime ago.

::

Right.

::

But ultimately what it's saying that is

if you're an organization that's overseas

::

or you're a US based seller selling into

or selling to Australian shoppers

::

and you're selling over $75,000 AUD

worth of goods annually...

Right.

::

you are required to register

for GST and collect

::

the 10% GST at the time of sale and remit

those funds on a on a regular cadence.

::

Now, what John was referring to

with the high de minimis

::

is that there's a 1000 Australia

::

Australian dollar de minimis

for duty threshold and so duties

::

will not be assessed until you purchase

something over 1,000 AUD.

::

So yeah, you'd have to buy quite a bit.

::

Quite a bit.

Yeah.

::

One thing... I was looking at something else

::

I wanted your take on.

::

They, apparently, I guess since the pandemic

their buying habits have changed, right?

::

So they're more apt to buy

when there's a special.

::

Okay.

::

And they're more cost conscious

than they were before the pandemic,

::

probably because they were

locked down for how many...

::

they were locked down for a long time.

Yeah.

::

But it's interesting that, ser...

the cost is more than service.

::

but quite frankly, with our new...

our services have improved quite a bit.

::

We're, you know, now we're inducting

in four ci... four particular cities

::

in the in the UK.

::

Our average transits are seven days now...

Australia.

Australia, I'm sorry.

::

No, you're good.

I mean and it's full tracking.

::

It's just it's been such

a better experience in what, the last

::

seven, eight months

since we changed our strategy.

::

Significant. It was...

Yeah.

::

It was a little rough there for a while.

::

I mean really, I mean they shut down...

we go back to

::

not that I want to talk

about the pandemic,

::

but the reality is this is that,

you know, Australia was very conservative

::

with shutdowns and which led to

I mean, heck, the USPS pulled out for how long?

::

Oh, months.

It was months that

::

they just said, eh,

we're not shipping into Australia.

Yeah.

::

And then on top of that,

::

with significant air freight reductions

in terms of actual supply lanes of,

::

you know, the ability to get material over

to Australia, it cut down the

::

transit times were

::

very high because we had delays

in parcel processing.

::

But on top of that too,

::

we were looking at

it was almost double, right?

::

From what, if you look at 2019 to 2021,

probably double and now we're back down

::

to getting close to what we had in 2019,

which is fantastic.

::

Which, which, you know, if you look at it

from a domestic standpoint,

::

if you've got 7 average domestically,

probably five years ago you were a star,

::

you're doing seven day average.

::

So a country that's half way around

the world, you’re getting seven business days.

::

That's pretty impressive.

::

So if that's something we can help

you all on the phone here... oh on the podcast here

::

that's... it's a really good service, obviously,

to your point, it’s one of the largest

::

lanes.

Absolutely.

::

It's a real good opportunity

for a lot of companies to hop on that.

::

Yeah, I agree.

::

And I think just, you know, recapping

because we've been yapping for a while

::

here, but we're going to recap.

::

So today we focused on, you know,

the challenges,

::

cross-border shipping to top

three e-commerce markets,

::

and again, that's from the perspective

of a US-based logistics company,

::

which is going to be in a direct-to-consumer,

which is going to be Canada, UK, and Australia.

::

The... you know and so any, any questions

concerns that that you as a listener have,

::

you know, add it to anything that you see

there. Send it into the the email address,

::

the contact us, wherever you see this

add a comment and let us know.

::

And also let us know if you if there's

anything that you want to hear about.

::

We would love to get your

involvement as well.

::

But John,

::

is there anything else you want to recap

and kind of cap off of for today's talk?

::

The only other thing I would ask

::

the audience is if they want

any more Latin terms.

Oh, boy.

::

And we can

::

we can ask them if that's how they want

that presented and we'll go from there.

::

Just one per episode.

That’d be...that’d be fine.

::

Okay, I'll, I'll get on the Goog

and I'll figure it out. Okay?

::

No no no. I’m just...I’m just joshing you.

::

No, that was really good information today.

::

All right.

::

Thanks, everybody.

We'll talk to you next time.

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