Shipwire presentation at PrestaShop Bar Camp 2012 given by Kenny Lim. http://www.shipwire.com

1. Go Global
Kenny
Lim,
Shipwire
International Shipping or Using
Outsourced Warehouses To Grow Your
Global Business
www.shipwire.com
provides
enterprise
order
fulfillment
and
managed
shipping
to
growing
brands.
We
operate
pick
pack
warehouses
in
the
USA,
Canada,
Europe
and
Asia
(Hong
Kong)
where
brands
put
their
inventory.
hEp://www.shipwire.com/why-­‐shipwire
Kenny Lim, Shipwire March 20, 2012 - Barcamp 5 PrestaShop

2. Today’s Topics
• Overall we’re talking about 2 models
 Do-it-yourself International Shipping
 Outsourced fulfillment and shipping
• Where is global growth?
• Pros and cons of international shipping
• What is order fulfillment? Who is it good for?
• What is Shipwire?
3/15/12
2
Kenny Lim, Shipwire March 20, 2012 - Barcamp 5 PrestaShop

3. 5 Steps to Global Expansion
Know what type of business you are?
 How many products do you sell?
 How much inventory do you carry?
 Do-it-yourself and/or outsource?
3.
Get
best
1.
Set
goals
and
sellers
into
2.
Simplify
your
4.
Know
your
5.
The
power
of
do
your
market
or
product
catalog
markeQng
plan
local
fulfillment
research
figure
out
x-­‐
border
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Kenny Lim, Shipwire March 20, 2012 - Barcamp 5 PrestaShop

4. Should you go global?
• USA
– Largest B2C e-commerce market. Still growing fast.
Product
selec,on
Toys,
– Projections of $223-250B by 2014
electronics,
apparel,
• UK (Gateway to Western Europe) health
and
beauty
– Online retail sales will grow at 10.5% through 2013
• Canada
– Most web enabled country as a percentage of total population.
– E-commerce penetration growing
• Others:
– Asia: Growing market. Hungry for branded product. Reach from Central Asian
Warehouse
– Australia: Hungry market. Long distance. Reach from Central Asia distribution
– Germany & core European countries: Can be reached from UK or European hub
– Brazil: International parcel, border challenges can exist.
– Eastern Europe: International parcel, border challenges can exist.
*Source:
Internet
Retailer,
June
2009
(excludes
travel)
4
Kenny Lim, Shipwire March 20, 2012 - Barcamp 5 PrestaShop

5. Direct Shipping From U.S.A.
Is Complex
• Expensive shipping Good for merchants with DEEP
• Returns nightmares catalogs & low inventory depth
• Long time delays for
buyers and customs,
duties & tax issues on
buyer
• You will not “look local” to
the buyer
• Save with: Consolidators,
zone skipping, proxy
shipping
5
Kenny Lim, Shipwire March 20, 2012 - Barcamp 5 PrestaShop

6. International Shipping
Challenges
International shipping is bad for
conversion
• Too slow for today s e-commerce sales
• Too expensive
• Too risky
• Confusing for buyers
• Not a good customer experience
6
Kenny Lim, Shipwire March 20, 2012 - Barcamp 5 PrestaShop

7. Outsourced Fulfillment
• Fortune 500 model
• Goods stored locally – sellers look like a local seller
• Each facility can ship domestic or international
• Competitive local shipping options & fast delivery
• Less customs, duties and tax implications on buyer
• Local returns handling
7
Kenny Lim, Shipwire March 20, 2012 - Barcamp 5 PrestaShop

8. Inbound - Store - Outbound
Warehouse
Storage
Manufacturer
Shipping
Distributor
8
Kenny Lim, Shipwire March 20, 2012 - Barcamp 5 PrestaShop

9. Outsourcing Helps You Impress Buyers
• Consumers buying online expect flawless order execution
• Order fulfillment*, as key driver, impacts: High-shipping cost is biggest
– Initial purchase / abandonment driver of shopping cart
abandonment (46%) as
– Repeat purchases reported by PayPal**
– Overall brand perceptions (in marketplaces and via storefronts)
– Automates and reduces support costs
Fulfillment Service Quality In 6 Dimensions
1. Price
2. Choice
3. Timeliness
4. Transparency
5. Consistency
6. Error recovery/returns
Sources: *Order Fulfillment in this context covers Order Sourcing, Order Changes, Order Processing,
Shipment, Delivery, and Returns. **Reference Wall Street Journal, Oct 21 2009
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Kenny Lim, Shipwire March 20, 2012 - Barcamp 5 PrestaShop

10. Automate Your Business
Shipwire
Takes
Care
of
Shipping
Seller
Takes
Care
of
Shipping
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Kenny Lim, Shipwire March 20, 2012 - Barcamp 5 PrestaShop

11. What Shipwire Offers
• 7 warehouses, 4 countries, 1 account
• Every warehouse ships domestic &
international
• 100% accurate order fulfillment,
guaranteed!
– Eliminate shipping headaches
– Cut domestic shipping costs by 35%
– Cut international shipping costs by 75%
– Rate shop every order
– Grow overseas and domestic sales
– 1-click error resolution + insurance
claims
• Free order management
– Multi-location support
– Multi-carrier label printing
– Address verification and order validation
– Bundled shipping insurance
– Inbound inventory management
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Kenny Lim, Shipwire March 20, 2012 - Barcamp 5 PrestaShop