Business, e-Commerce

e-Commerce Business Solutions: How We Help You Save on Shipping & Warehousing

By Geoff Parent on September, 16 2020

Second Closet is the fully integrated Canadian e-Commerce business logistics and fulfillment partner you’ve been looking for. We offer cost-effective, technology-first solutions to seamlessly manage and securely store your inventory, fulfill e-Commerce orders and deliver best in class customer experiences.

As consumers everywhere shift the majority of their buying habits online for both essential and non-essential items, businesses of all types and sizes should be focused on developing or sustaining a strong online presence. And this means more than simply listing and selling products effectively; it’s about committing to solid, cost-effective back-end logistics that will keep inventory safe and organized, costs down, orders fulfilled and your mind where it should be: focused on growth initiatives and off day-to-day operations and logistics.

This is especially true as we head into a holiday shopping season that will be full of new logistical challenges for many retailers.

Looking to streamline your e-Commerce fulfillment practices and logistics before the holiday rush? Contact us today.

 

INQUIRE ABOUT E-COMMERCE FULFILLMENT SERVICES

 

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The partnership you need to scale your online operations

For many smaller to medium-sized businesses, it’s difficult to know how to achieve online operational success. Building out an internal operations team is a time-consuming investment that’s full of risk. Going with a major third-party retailer may also seem like the cheaper, most efficient option, but working with these companies is an impersonal process that makes it difficult to convey your unique brand to potential customers.

Conversely, working with an e-Commerce fulfillment and logistics partner like Second Closet allows you to reap all the benefits of your own dedicated operations team as well as the best-in-class logistics and fulfillment experiences you expect from the third-party giants. Aside from simple convenience and operational excellence, however, we also provide cost-effective solutions to help businesses stay competitive and profitable. Read on to learn more about how we help you save on inventory storage and shipping costs.

Want to learn more about the importance of improving your e-Commerce practices in 2020? Download our FREE e-Commerce guide!

 

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What are the e-commerce pain points surrounding shipping and warehousing?

Shipping to Canadians presents problems for Canadian and American businesses alike

Simply put: shipping matters to Canadian consumers. In a 2019 report, 80% of Canadian respondents listed free shipping as the primary factor driving their choice of retailer. As e-Commerce continues to evolve and expand, it’s difficult for small- to medium-sized businesses to stay competitive when it comes to free shipping. When overhead costs associated with things like shipping and warehousing start to grow, small- to medium-sized businesses lose the ability to stay competitive in a market where added fees mean unsatisfied customers.

In a 2018 survey looking at the primary reason why Canadian online shoppers abandon cart, a definitive 72% of respondents blamed shopping costs that end up being too high or more than expected.1

For American businesses, reaching a rapidly-expanding market of Canadian shoppers also presents uniquely difficult challenges. Shipping and fulfilling from the United States presents avoidable inconveniences to Canadian end customers.

Stores located in the USA often charge Canadian customers a 25-40% shipping premium when it would otherwise be free for American customers. Plus, for orders of $151 or more, Canadians must pay customs duties on top of the already exorbitant shipping costs. In comparison, the minimum threshold for this import tax for Canadian goods shipped to the United States is USD $800.

When you add these fees and discrepancies, Canadian customers are far less likely to convert when it comes to cross-border shopping.

 

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Receiving, warehousing, reverse logistics

Shipping aside, the e-Commerce fulfillment process can be a complicated one full of snags, stakeholders, inefficiencies and unnecessary costs. Receiving, storing, managing, picking, packing, shipping and managing returns are all essential steps to successful order fulfillment that must work in tandem. The more third parties involved, or steps ignored, the higher propensity there is for headaches. One of the areas this is most prominent is reverse logistics. From delivery fees and re-stocking expenses to inventory losses and damages, returns can be costly and drastically affect the bottom line. Plus, returns matter to consumers as well:2

  1. At least 30% of products purchased online are returned vs. 8.9% in brick and mortar stores
  2. 92% of customers will buy something again if the returns process was easy
  3. 67% of shoppers check the returns page before making a purchase
  4. 47% want an easy-to-print return label

Instead of treating these potential losses and deterrents as an inevitability, it’s essential to work with a fulfillment partner who prioritizes returns and handles them efficiently, effectively and affordably.

 

The solutions to help you save on shipping, streamline your back-end logistics and achieve cost-effective operations

Second Closet is more than just an e-Commerce fulfillment and logistics partner. These pain points matter to us and we operate strategically and collaboratively to ensure our partners can overcome these challenges and scale their e-Commerce operations.

Healthier margins, lower shipping costs, easier fulfillment for American brands

We build the partnerships you need to stay competitive, maximize profitability, reduce abandoned carts and satisfy customers. We leverage the millions of dollars we spend with UPS, FedEx, Canada Post, Canpar and other major postage providers to secure excellent, discounted postage rates of up to 80% for our e-Commerce fulfillment clients and their consumers. We never mark these rates up and we pass the savings directly on to the businesses we work with.

For American businesses, our fulfillment centres are strategically located in Canada’s largest urban centres (Toronto, Vancouver, Ottawa, Montreal) to get you closer to consumers north of the border. This greater accessibility will eliminate customs fees, import taxes and drastically reduce wait times to help you create a better e-Commerce experience for your Canadian customers.

We are so confident in our ability to deliver on time that we guarantee same-day order fulfillment for orders placed before 1:00 PM.

A single-partner solution to help streamline every stage of the e-Commerce fulfillment process — even reverse logistics

As we’ve already stressed, receiving, storing, managing, picking, packing, shipping and returning online orders are all essential steps to successful fulfillment. The more steps your dedicated e-Commerce fulfillment partner can handle, the less you have to worry about back-end logistics. This gives you the flexibility you need to focus on the aspects of the business that you manage best. We are a fully-integrated team of storage and logistics experts who deliver end-to-end services to streamline and simplify your e-Commerce efforts.

Instead of working with multiple third-party logistics providers, you can rely on Second Closet at every stage of the order fulfillment process. This ensures that you get the best, most comprehensive service for your dollar. Our fully-integrated services can save you up to 40% on warehousing costs.

When it comes to reverse logistics, we can help with every stage of the process and make it easier for you to reduce costs and improve inventory management. When your customer requests an exchange or a return through your online store, we’ll receive the information before creating and sending the packing label at no cost to the customer. Once the customer sends the product back to us, we’ll receive and inspect the product before adding it back into your inventory.

 

Ready to start scaling your e-Commerce operations? Contact us today!

Running a business and successfully scaling your operations in the e-Commerce marketplace is hard. Don’t let the logistics of fulfillment stand in the way of growth. When you work with Second Closet, you’re choosing a dedicated partner who will help you respond to, and overcome, the most common e-Commerce challenges faced by businesses of all sizes.

If you want to learn more about our e-Commerce fulfillment services, and about how we can help you scale, streamline and save on operations, reach out today and one of our representatives will be in touch within 24 hours.

 

INQUIRE ABOUT E-COMMERCE FULFILLMENT SERVICES

 

Sources:

  1. Canada Post. “The 2020 Canadian e-Commerce Report
  2. Invesp. “E-commerce Product Return Rate – Statistics and Trends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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