ON THE RISE

Shipping times and costs are two of the most scrutinized aspects of e-commerce. However, if managed well, they can also become a competitive advantage. Given the dramatic increase in e-commerce through 2021, carrier congestion is a major concern and a rising cost. At the same time, customers have become accustomed to receiving their packages almost instantly and often with free shipping. It’s no surprise that they grow impatient when waiting for their delivery. Since 2012, consumer expectations on maximum wait time willing to accept for free delivery decreased from 5.5 days to 3.3 days in 2021. This 40% increase in expectations has added additional pressure to all parts of the supply chain.

4 CORNERS STRATEGY

The million-dollar question is what be done to reduce shipping times and costs? A key element in NRI’s offering is our “4 Corners” strategy – facilities in Canada and the USA and on both the east and west coasts of each country. For our clients with a heavily weighted east coast business, it may make sense to place inventory in the east.  For those chasing the Pacific Coast customer base, place inventory in the west. We are experts in inventory management and can help our clients strategically place inventory in all 4 corners if they wish – allowing the fulfillment to customers from the nearest facility. By placing products in facilities on both of our coasts, in either Canada, the U.S., or both, NRI can help reduce shipping times significantly. And since freight costs are related directly to distance traveled, placing inventory closer to your customer base allows you to reduce your overall shipping expense. We aim to help our clients in success through geographical intelligence and have the tools to help analyze and build the optimal solution.

SECTION 321

An added benefit to using our Canadian facilities is Section 321. Section 321 allows companies to import goods into the USA duty-free, so long as the retail value is below $800. Duties can often form a large portion of the product cost, so by finding ways to eliminate it, margins improve significantly. By placing your USA-destined e-commerce inventory in our Canadian facilities, you are set for even more savings!

Shipping times matter to your customers. NRI’s scalable solutions are designed thoughtfully to help you increase business, maintain customer satisfaction, and build lasting relationships.

For more information, contact us.

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