The latest episode of The New Warehouse Podcast features an enlightening discussion with Blake Dudek, President and COO of Jay Group, and Andre Storm, Director of 3PL Sales at Passport. Together, they delve into the complexities of international shipping for e-commerce brands. The conversation touches on how businesses can overcome the regulatory, logistical, and customer experience hurdles often associated with global expansion.

The Hurdles of International Shipping

Brands looking to enter international markets often face challenges navigating the complexities of regulations. As Blake explains:
“Depending on what you are selling, you may not be able to sell in certain countries… Language, packaging, and tariffs are just the beginning of what you need to consider.”

Tax compliance, customs paperwork, and customer expectations add further complications. Andre pointed out:
“A lot of times, brands have tried shipping internationally but don’t have the same confidence they do domestically. They want to duplicate that seamless experience but feel it’s too complicated.”

The solution? Building partnerships that instill confidence, prioritize compliance, and streamline the process while focusing on delivering a positive customer experience.

Why Some 3PLs Hesitate to Expand Internationally

Despite the opportunities in international markets, many 3PLs avoid specialization due to the complexities. Blake highlighted:
“Some 3PLs don’t have the infrastructure or technology to handle international requirements effectively… Without updated systems or dedicated teams, it’s a resource-heavy challenge.”

Innovative providers like Passport empower 3PLs to overcome these barriers, offering tailored solutions that make international shipping more accessible for their clients.

Capitalizing on International Expansion Opportunities

Andre and Blake emphasized that with intentional planning, brands can realize significant growth by expanding into global markets. Andre shares, “We see e-commerce heading toward six trillion dollars by 2030, and Passport aims to help brands grow their share of that. ”He adds, “Data shows that customer acquisition costs are generally lower outside the U.S. If you can duplicate the domestic experience for markets like Canada, the UK, or Australia, it becomes much easier.”

Andre advised brands to begin with manageable markets like Canada, the UK, or Australia, noting:
“These markets are easier to navigate and can yield significant results.”

Blake added a focus on customer experience:
“Focus on the customer journey—from checkout to delivery. A few extra minutes spent on details upfront can save hours of customer service later.”

Key Takeaways

• Regulations, language, and tariffs are significant hurdles but manageable with the right strategies.
• Partnerships with providers like Passport help 3PLs bridge international shipping infrastructure and expertise gaps.
• Expanding internationally offers lower customer acquisition costs and growth potential when done intentionally.
• Markets like Canada, the UK, and Australia are ideal starting points for e-commerce brands to begin shipping internationally.