Global Direct Entry

3/18/2016
Global Direct Entry
What is GDE?
•
An innovative means to drive efficiencies and cost savings
within an importers’ supply chain, benefitting both you and
your customers located throughout the country
•
GDE components:
• Offshore sourcing
• Logistics
• Customs brokerage
• USPS final mile delivery
• Who Benefits?
• Your customers
• Your bottom line
• Your ability to compete-speed to market
1
3/18/2016
How does it Work?
GDE Life Cycle
• Pick up parcels from offshore customers
• Print labels and postage using USPS Global Shipping Software or PC Postage equivalent
• Consolidate parcels‐by air or sea
• Arrive at destination and clear customs (no duty for parcels valued at $200 or less going to 1 addressee)
• Hand over parcels to the USPS for final delivery 2
3/18/2016
GDE Qualifiers
•
•
•
•
•
•
•
Offshore product sourcing
Finished products
Offshore product labeling and packaging
Online selling platform
Business to consumer shipper
Minimum of 100 packages per shipment
Ship one to many
USPS Partnership Benefits
• USPS Qualified GDE Partners
• One predictable price
• No residential surcharges
• No fuel surcharges
• No dimensional weight charges in the US
Transit Times
GDE Business Impact
• Asia/USA‐ 5 to 7 days (FCM/PM)
• Europe/USA‐ 3 to 5 days (FCM/PM)
• South America/USA‐ 3 to 5 days (FCM/PM)
Other Benefits
• Reduce overheads
• Warehousing costs
• Inventory carrying costs
• Distributor mark ups
• Customized logistics (air/sea) • Enhances the customer experience
• Does not require large volumes 3
3/18/2016
Typical Supply Chain
-$200,000
-$5,000
-$1,000
-$1,000
-$1,000
Acquisition &
Storage &
Inventory
Inventory
10,000 units
Transportation
Insurance
Turnover
Carrying Cost
Sold @ $50 ea.
+
-$208,000
( -$1,000
x 90 Days )
=
-$298,000
$500,000
Factory‐Direct to Consumer
-$200,000
-$5,000
-$10,000
-$1,000
-$1,000
-$1,000
Acquisition &
Storage &
Inventory
Inventory
10,000 units
Transportation
Insurance
Turnover
Carrying Cost
Sold @ $50 ea.
-$210,000
-$208,000
+
-$1,000
( -$100
90 Days )
x 15
=
-$211,500
-$298,000
$500,000
4
3/18/2016
Global Direct Entry Network Model
Pure freight move. Not for GDE.
Global Direct Entry Network Model
The perfect scenario for GDE is when the USPS
is used for US distribution to US consumers.
5
3/18/2016
Global Returns Solutions
Cross-border rewards can be tremendous
6
3/18/2016
Importance of returns on buying behavior
USPS procured the below research to determine the size of the international
returns market going back to the US, and to determine how US return policies
and solutions affect the purchasing behavior of buyers in Canada.
• Colography Group Survey of US exporters
• Aeffcet Inc. Survey of regular online buyers in Canada
Key Findings:
International consumers consider the return policy prior to purchasing from a
US merchant
Canadian consumers would purchase more from US merchants if free or
reduced-priced returns were offered
Importance of returns on buying behavior
Survey Says...
27% of active online Canadian consumers returned at least one item purchased online within the last year
78% indicated that the return policy was somewhat influential or very influential in their purchase decisions
When Asked…
If a US-based company offered a free return label either upon request or within the original shipment,
How much more likely would you purchase from that company?
33%-44% said “much more likely” (respectively)
Would your use of that company increase, decrease etc.?
15%-25% responded “increase a lot” (respectively)
7
3/18/2016
Understand consumer expectations Consumer expectations in European markets
• China/ Asia, Latin America may have lower needs to return fashion items
• Europe: some countries are used to high rates of returns for fashion items
8
3/18/2016
USPS developing Return services to fill those gaps
• USPS International Returns stimulates cross-border B2C trade –
increasing U.S. merchant exports.
• Hassle-free returns and a clear returns policy lead to repeat
business
• Return policies are directly influenced by the value of merchandise
and the cost of return shipping
• …it doesn’t make sense to pay $30 in return shipping on a $50 or
$100 item
International Merchandise Return Service (IMRS)
9
3/18/2016
IMRS is easy to use
Especially for on-demand generation of return labels and customs
declarations.
1.a.
Overseas customer initiates the returns process on the US seller’s website…
2.
… is then redirected to the USPS Returns web application …
3.
… application generates a returns label
and customs declaration that is emailed
or printed by the user.
1.b.
US Seller’s call center receives call from a
customer wanting to return a product …
www.uspsreturns.com
Benefits of IMRS
•
IMRS will broaden your customer base by enabling returns from
top export markets throughout Europe and Asia.
•
IMRS Rebates, as part of the GEPS offering, will stimulate
international sales by greatly reducing the cost of international
returns.
10
3/18/2016
Consolidated Returns for European markets:
planned features
Parcel shop drop off locations throughout Europe
Consolidation, resell, special handling
Commercial freight to U.S., GDE into USPS Mail Processing MRS or Global Direct Entry
Easy to use, benefits
Consolidated international returns services will provide lower cost
options and greater flexibility by offering:
• One-stop shop for European returns
• Various returns handling solutions (consolidate low value items,
recycle, resell on marketplace)
• High quality service from experienced provider
• Economies of scale due to batch shipment as opposed to
single piece return
11
3/18/2016
Questions?
Contact a Global Sales Rep by emailing: GlobalBusiness‐[email protected]
12