Fulfillment can be one of the most overlooked ancillary e-commerce services, yet it carries with it far reaching regulatory and tax implications along with an often-overinflated price tag. In themodern global marketplace, whether your business has customers all over the world or you just ship within a single country, how and where products are shipped from has enormous implications.
First and foremost your shipping costs come directly out of your pocket so paying the lowest price possible for quality service couldn’t be more important. The time is takes from when a purchase is made to the time that product arrives at your customers door is also paramount to the long-term success of your business as it relates directly to your overall customer experience. These are the two basic components of fulfillment most merchants look at and a central focus at DCMT. When you look deeper however there’s much more to the story.
Take the following 3 business examples:
- A US merchant is shipping a bottle of supplements to a Canadian customer. Notknowing their product needed to be registered and approved by the Canadian government, it’s rejected at the border at the merchant’s expense. At DCMT we would not only connect you with a product registry expert to guide you through the submission process, we could also connect you with in-country fulfillment, on demand high quality products and pre-approved formulas to help you reach your customers.
- A Canadian merchant is selling products in the US. Thinking they need to be shipped from the US for their customers to receive the product as quickly as possible, they contract a fulfillment company in California to ship their products for them. This merchant has just unknowingly created a Nexus in California, a state that has specifically ruled that shipping from their state means they now must charge all their California customers sales tax and remit it to the state. Failure to do so has them personally liable. This nexus also means they are now operating under the State laws of California in addition to the laws of their corporate headquarters in Canada. At DCMT we can help you ship into the US from Canada for both the exact same cost and fully tracked delivery time to your customer. With an $800 duty free limit between Canada and the US, the customer would no longer have to pay tax and the merchant would have avoided creating a Nexus in California.
- A US merchant decides to start selling their products to UK customers. Not realizing the tax requirements in the UK, they begin shipping products from the US. Upon arrival, customers are not only charged sales tax by their local government, they are also charged a processing fee by the shipping carrier that must be paid prior to receiving the package. Angered by the additional charge, many customers will reject the package at the merchant’s expense or even call up their bank to place a chargeback. At DCMT we connect you with a local fulfillment center in Europe to get your products to your customers for less money, in less time and fully avoid the complex border issues keeping your customers happy.
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