Episode 84: Helping Subscription-Based Brands Grow Internationally with Jack Purcell, Sales Generation Lead Advisor - MyParcel at GEODIS

Sep 1

In the latest episode of Subscriptions: Scaled, we speak with Jack Purcell, Sales Generation Lead Advisor - MyParcel at GEODIS.

GEODIS is a supply chain operator ranking among the top brands in its field both in Europe and the rest of the world. GEODIS works with many merchants following a subscription-based model.

In the episode, we discuss:

The challenges and opportunities for subscription-based businesses
How GEODIS helps merchants understand legislation and regulations
How merchants should handle charges
How GEODIS deals with products held up in different countries
How to stay updated with the legislation and regulations of different countries
How to choose the right merchants to work with
How GEODIS can help merchants solve complex problems

… and so much more.

Keep reading to learn more about the episode.

GEODIS

GEODIS manages customer supply chain by offering end-to-end solutions, enabled by the company’s expert staff, infrastructure, processes, and systems. GEODIS has a global network, operating in over 170 countries.

The brand is French-based, but they’re one of the fastest-growing 3PLs in America. Their headquarters are based in Brentwood, Tennessee.

GEODIS’s core business contract logistics are:

· Warehousing fulfillment

· Freight forwarding

· Air and sea containers

· Domestic transportation

Jack is on the MyParcel team at GEODIS. MyParcel is in international fulfillment - direct to consumers from the US to international destinations.

The Opportunities for Subscription-Based Businesses Going International

When it comes to opportunities for subscription-based businesses, cross-border trade is projected to grow by over 25% through 2028. That would bring the total market to over three trillion. This is explosive growth in the international market on a macro scale.

Then you look at it from a micro scale, such as individual subscription box owners and operators. Many of these boxes offer niche products and business owners are opening up to markets by expanding internationally to places like the UK, Canada, and the EU, where the product on offer may not be available.

On the opportunities front, there are plenty for the international expansion of subscription boxes.

The Challenges for Subscription-Based Businesses Going International

There are risks linked with shipping domestically. You’re relying on third-party partners, you’ve got to deal with tracking, and you’ll have returns. However, once you take these issues internationally, these problems because more complex and harder to manage.

Returns become even more complicated, you’re crossing borders, and there’s compliance to consider.

While there are huge potential gains in reaching an international market, there are also risks. Providing a top-tier customer experience across borders can be a tough challenge.

Helping Merchants Understand Legislation and Regulations

When GEODIS starts working with a new customer, they focus on compliance as it represents the company’s most significant risks.

For example, merchants need to ensure they’re not using hazardous materials in their subscription boxes. Sometimes it can get complicated. Certain fabrics or chemicals that can be used in beauty products in the United States, for instance, may not be permitted in other countries.

GEODIS helps customers understand what can and can’t be used in their products. Their systems are always up to date, so they can ensure hazardous items are flagged before being sent internationally.

Products containing hazardous materials are tagged with a harmonization code. This allows other countries to identify a product and helps MyParcel to mitigate some of the risk.

How Merchants Should Handle Charges

When it comes to international charges such as duties and taxes, the end customer will typically pay. Certain products incur these duties and taxes, but they are typically presented in the shopping cart with a good delivery duty paid (DDP) solution.

People end up paying more for these products with added charges, but in many cases, local substitutes aren’t readily available.

Many subscription boxes are so niched that people are willing to pay extra to have the right products delivered to their door.

One of the biggest problems with delivery duty unpaid (DDU) services is that it can lead to customers abandoning items in the cart. If a customer doesn’t know exactly what they’re expected to pay upfront, this can lead them to give up on their purchase further down the line.

Informing customers of the total cost of their item, plus delivery, can prevent them from abandoning the cart before payment.

Handling refunds

For GEODIS, the main challenge of handling refunds is when it requires a physical return of the item. A refund domestically versus internationally is easier to handle.

Things get much more complicated when looking at an international returns process. The GEODIS team must weigh whether it’s worth bringing the product back to America.

Questions they may have to consider include:

· Is there somewhere overseas to store the product until it sells?

· Should the product be destroyed?

· Is the product worth shipping back to America?

When it comes to the supply chain challenges of international sales, returning products is often the biggest challenge.

Keeping Up with what’s Allowed in Other Countries

Importing and exporting rules are constantly changing in other countries, so GEODIS needs to keep on top of this.

GEODIS pays attention to the following core competencies to ensure a smooth and streamlined service:

· Cross-border compliance

· Expediting orders

· Knowing what’s allowed where and when

The company’s growth over the past 10 to 15 years makes GEODIS a global player with expert knowledge in the industry.

GEODIS is constantly keeping up-to-date on cross-border expertise. However, dramatic changes or differences to rules generally don’t occur without prior warning.

Staying up-to-date on cross-border expertise is a huge part of the service provided by GEODIS and adds real value to merchants.

Stay in Contact

GEODIS is an essential and valuable service for many subscription-based brands shipping boxes domestically and worldwide.

If you have questions for Jack or want to connect with him, you can reach out directly by email at Daniel.HERRMANN@geodis.com.

Be sure to rate, download, and subscribe to the podcast, so you don’t miss an episode, and we can keep creating helpful content on the subscriptions industry.