On this episode, host Harry Drajpuch, CEO of Amware Fulfillment, is joined by Wayne Chapman, CEO at Staci UK,  the UK's top multi-channel logistics provider. Staci is Amware’s parent company.

Wayne and Harry discuss the ongoing challenges and opportunities facing online sellers who want to expand to new overseas markets. UK-based Wayne says Brexit has not been as quickly forgotten as anticipated, with economic impacts from Covid-19 and the Ukraine war adding complexity to cross-border trade. 

The two also discussed the trigger points for establishing a distribution point in a new country. Obviously, projected order volumes must be sufficient to warrant the expansion. Then it’s a question of examining service and cost. On the service side, a US-based e-retailer with local distribution in the UK will go from a 5-10 day order-to-delivery cycle time to next day. Many consumers want that level of service – especially for products they can get elsewhere. You need to balance the incremental revenue this enhanced service will bring with the added costs for inbound freight to the new warehouse and the storage/pick-and-pack costs. 

Brands expanding to Europe may likely establish a central warehouse to serve multiple countries. Where to put the central DC is obviously an important question, with service and cost implications. One of Staci’s advantages is that the company has fulfillment centers across Europe and can put products where it makes the most economic sense given the ship-to points.  

Wayne says managing eCommerce returns can be particularly vexing for brands without a local distribution presence. 

As far as the timeline for brands to start shipping in a new country or region once they have engaged a 3PL, Wayne says that integration process will vary based on complexity, with a standard eCommerce integration typically taking around four weeks.

Resources mentioned:

Wayne Chapman - https://www.linkedin.com/in/wayne-chapman-0856963/?originalSubdomain=uk

Staci UK - https://www.linkedin.com/company/staciuk/

Staci UK | Website - https://uk.staci.com/

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