Portless’ Post

Interesting comment from the CEO of Superdry! I think it’s fair to say many people in the eCommerce and logistics arena do raise eyebrows on the likes of Shein and TEMU for goods coming out of China when it comes to longevity and sustainability on the costs we see in the industry. I do find it bizzare Shein have allegedly stated in this article, “The company has previously said it is successful because of an “efficient supply chain” and not tax exemptions”. Well, I’m not sure it’s efficient supply chains, they drive the cost to the basement on E2E shipping especially in final mile delivery space, and yes the consumer wins of course despite concern rates are at such a low point, it’s simply not sustainable long term for the supply chain. Many would argue it is a volume / parcel density play to fill networks, and whilst I agree that’s the play, I do however believe the lightweight/ low value Import market has stripped significant value out of the delivery chain. It’s no wonder some UK retailers are voicing thier discontent as they deliver commitment to their carrier of choice at much higher prices, and yet overseas shippers get lower delivery cost, and in some cases more focus although it would seem have less loyalty to the carrier you could argue 🤷♂️

"You could match demand and supply very closely, allowing you to have efficiency in your business, better cashflow, better margins” Our CEO, Izzy Rosenzweig, is not wrong. So why aren’t more American brands utilizing direct fulfillment from China and leveraging Section 321? Well, there is a big misconception that only China-based brands can leverage this provision. Which is a big fat lie. American brands tapping into this method of fulfillment can: 🔷 Match demand to supply very easily by leveraging JIT inventory. 🔷 Free up cash flow by having less inventory tied up. 🔷 Enhance margins by utilizing Section 321, which removes duty and tax on packages entering the USA. Section 321 is completely changing the way brands are running their supply chains. Rather than battling to eliminate Section 321, American brands should leverage it and enjoy the savings that many e-commerce brands using this provision are reaping today. Thank you Madeline Stone for giving our CEO Izzy the platform to talk about the positive side of Section 321 and how American brands can fully take advantage of it. Check out the full article here: https://lnkd.in/gR8RFAYB

US-based online sellers are copying Shein/Temu's playbook to avoid import duties. Goods arrive in the US, get trucked to Mexico, and then immediately get shipped back to the US duty-free. Companies are importing goods to Mexico or through the port of Los Angeles and then to Mexico. They then ship to consumers in the US from the warehouses in Mexico. Since they were never imported in bulk to the US and each shipment is under the $800 de minimis value, there are no duties to be paid. Those de minimis shipments will hit 1.5 billion this year. 

Shein and Temu are causing the freight increase across the globe All those Shein and Temu hauls aren’t just taking up tons of space in your closet—they’re also crowding freight airplanes departing from Asia. The CEO of DHL Global Forwarding told the Wall Street Journal that the rapid growth of the two Chinese ultra-cheap e-commerce sites over the past two years has them taking up more than 30% of cargo space on some routes. That’s a big change since it’s usually higher-end items like phones or perishable ones like fish that get shipped via air rather than sea. And shipping volumes out of Chinese manufacturing hubs have had a significant uptick—driving up prices even as Shein and Temu keep the cost low to you. Last month, cargo prices were up 40%, per the WSJ. It’s got freight companies pushing manufacturers and retailers to lock in space now before the holiday rush begins.

Temu does it. And so does SHEIN. So why isn’t your e-commerce brand? 🤔 What are we talking about? Direct fulfillment ✈️ So, how is direct fulfillment saving brands utilizing this method of shipping tons of $$? 🔷 Reduced Shipping Rates China is still considered a “transitional” country by the UPU, which means it enjoys a lower rate for sending mail to a developed nation like the US. As a result, mail services from China to the US cost less than Americans are charged by their own postal service for a comparable domestic delivery. 🔷 Zero Customs, Duties, and Taxes Seems too good to be true, right? 🤔 Well, it's not! Direct fulfillment lets you leverage Section 321, allowing brands to ship individual customer packages into the US free of duty and taxes, as long as the item(s) value does not exceed $800. Considering duty and taxes can range from 5% to 20%, and for apparel, it can often reach 30%-40%, that's a significant amount of $$$ that you can reinvest back into your business. 🔷 Faster Time to Market Imagine the game-changing impact on your business if you could bring your products to market in days, not months? With direct fulfillment, your products can hit the market and reach your customers much quicker. In fact, you can meet customer demands 10x faster than traditional transportation methods, turning your inventory into cash within days instead of months. 🔷 Avoid Over Production For businesses facing unexpected shifts in customer demand, inventory demand planning can seem like a guessing game 🧩 Unlike traditional transportation methods, where inventory needs to be produced 9-12 months in advance to meet seasonal demands, direct fulfillment takes the opposite approach. You can produce enough inventory to fulfill actual demand, avoiding commitments to large production runs and the risk of carrying excess inventory. Ready to save tons of $$ and time? Contact us today #directfulfillment #shein #temu

The rise of China-backed e-commerce retailers Temu and Shein have had an impact on airfreight volumes during the holiday season. It is estimated that each platform is shipping more than one million U.S. packages per day. That increase in volume is impacting the already limited export space out of China and driving up prices, our CEO Sunandan Ray told The Wall Street Journal. “Everyone who is importing by air is paying a higher price now because of the loss of capacity. To a certain extent it might be getting passed on to consumers, or it might be squeezing the margins of sellers.” Read the full article here: https://bit.ly/48rg5Fw #ecommerce #globalshipping #freightforwarding #aircargo #importexport

American companies that manufacture overseas are increasingly getting around import duties by embracing a controversial trade "loophole" that's been key to the rise of overseas e-commerce upstarts like Shein and Temu. In order to use the loophole, known as de minimis, companies ship orders out of warehouses located just across the border in Mexico and Canada or ship items via air freight directly from manufacturers in China, allowing them to dodge tariffs as high as 25% on some items. That's fueled a boom in warehouse openings just over the U.S. border in Canada and Mexico, as well as a cottage industry of startups aiming to make it easier for sellers to take advantage. As a result, the number of such imports has skyrocketed, and the U.S. is currently processing 4 million de minimis shipments per day, up from 2.8 million per day at the same time last year. New on The Information from me and Theo Wayt: https://lnkd.in/e_Q2ckKt

'Shein and Temu prices are set to get a lot higher as Biden takes aim at retailers linked to China 🎯💸⬆️#BidenAdministration #RetailImpact #ChinaUSRelations #Shein #Temu. For more insights, 🔍 check out www.databoutique.com 📊💼 #DataAnalysis #RetailData by cnbc about SHEIN

Closing the Loophole! US Targets Shein and Temu Big news in the e-commerce world! 🇺🇸 US lawmakers are moving to shut down the "de minimis" loophole, which has allowed platforms like Shein and Temu to bypass tariffs and safety checks on low-cost imports. This change could level the playing field, protect American jobs, and tighten up regulations on imported goods. What does this mean for global trade? More scrutiny, fairer competition, and potential shifts in how these platforms operate! #Ecommerce #LocalBusiness #Logistics #Fulfillment #SmallBusiness #GrowthOpportunity #TradePolicy #SupplyChain #section321 #section321fromCanada #section321canada

Fast fashion from Asia puts a strain on Western logistics networks   The many small parcels sent by Chinese online retailers are a burden for logistics companies in Europe and the USA. The online platforms Temu and Shein in particular are flooding Western markets with clothing that they have manufactured in China at the cheapest prices. Both providers experienced a boom in 2023, which is expected to continue in the coming months. This is also due to the difficult macroeconomic situation in Germany and Europe. Consumers are exercising restraint, buying less from Amazon and more from the cheaper Chinese online marketplaces.   Just one of the problems: together, the two fast-fashion giants generate around 8,000 to 10,000 tonnes of air freight per day. Industry experts estimate that around one million parcels are shipped every day – to the USA and Germany alone.    Temu and Shein achieve their cheap prices not only through unsustainable production, but also through customs trickery. Large consignments are split into smaller parcels, the value of each of which is just under the customs threshold of 150 euros. Accordingly, the networks of European postal companies and CEP service providers suffer from a flood of smaller parcels from China. The contribution margin per parcel is falling and with it the carriers' returns.   To summarise: Temu and Shein have expanded rapidly in Germany and Europe in less than a year with aggressive marketing and rock-bottom prices – and their expansion plans remain extremely ambitious. Not only the logistics companies, but also domestic retailers, who are experiencing considerable disadvantages due to Chinese trickery, will have to come up with something.   #fastfashion #logistics #CEP #ecommerce