Logistics: How FBE Can Help Your Business Penetrate the Southeast Asian Market More Effectively
Southeast Asia and ecommerce
It is no secret: the digital ecommerce landscape in Southeast Asia is booming. While we have been inundated with harrowing news related to Covid-19 over the past two years, a silver lining emerged in a report from Facebook and Bain & Company, which suggests that an approximation of about 70 million more people in SEA countries switched to more online-based shopping habits during the height of the pandemic, with further research inferring that the trend is most likely to continue or increase post-pandemic. This marks a pivotal time for SMEs such as yourself to take advantage of this rapidly growing SEA ecommerce marketplace to boost your own consumer base on a more global scale.
Covid-19 and logistics
However, circling back to the elephant in the room: the pandemic, it would seem that, despite showcasing a positive effect on digital consumer habits, Covid-19 has been a nightmare where logistics are concerned. As exciting as the prospect of penetrating the SEA market might be to brand owners such as yourself, the sudden spike in global logistics costs has made it all the more cumbersome for businesses to have their products move across borders and reach consumers in an affordable way. This upward tick in logistics costs, unfortunately, shows no sign of relief anytime soon, with expectations for prices post-pandemic remaining at a level much higher than that of pre-pandemic times.
How Fulfillment by Everpeaks Solves Your Logistics Issues
By becoming an FBE brand owner today, entering the SEA marketplace is made simple as your business will gain instant access to our highly secure duty-free FBE warehouse, located strategically in a Free Trade Zone, where you can directly ship your products to be stored. Once an order has been placed, your goods will be transported to your consumers directly through a smooth transference of product globally and on time.
Furthermore, because our warehouse is located in an FTZ, the requirement to pay upfront duties upon entry into another country is thereby nullified. Your business would only need to pay duties per item, post sale which allows for a greater cash flow for your business needs.
Lastly, any of your product units stored at our warehouse that is deemed unfulfilled, defective, or disposed of during the quality control inspection prior to fulfillment of sale are exempted from duties to be paid, which in turn takes away yet another additional cost that your business would incur if you were to follow a more traditional route of logistics and distribution for your goods.
International logistics, specifically for an SME, is a highly complicated and costly process, even before the pandemic hit. With roughly 15 different forms of fees needed to be paid each time your product makes the journey to one of your international customers, the entire affair can be unnecessarily tedious and expensive for a brand owner like you. Therefore, by opting to partner with us through our FBE solution, not only will you negate the hassle of having to constantly go through the motions of logistics issues each time you sell, but you will undoubtedly experience an increase in your cash flow that can be better served for your other business expenses.
Want to learn more about how to become an FBE brand owner with us? Check out our other related articles, or visit our website at www.everpeaks.com to get in touch with one of our team of highly qualified experts.