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How We Help Shopify Brands Improve Their Supply Chain Efficiency in 2024

Introduction

Hello! My name is Jack, and I am the founder of Ships Smart. Over the past few years, we have assisted dozens of Shopify brands in enhancing their supply chain efficiency through our fulfillment services running through China. In this article, I will walk you through how your current supply chain operates and how we can offer a superior solution that can potentially help you scale your business three times faster. Let's dive in!

Common Challenges for Small E-Commerce Brands

Small e-commerce brands often face several key issues:

  1. Long Lead Times: Production typically takes 2-4 weeks, and shipping adds another 2-6 weeks. Additionally, preparing goods in the warehouse can take up to another week, resulting in a total time of 4 to 12 weeks. This significantly slows down the process of getting products to the market.

  2. Cash Tied Up in Inventory: Due to the extended production and shipping time, businesses need to purchase at least two months’ worth of inventory upfront. This ties up cash and makes it difficult to scale quickly because more inventory needs to be bought constantly.

  3. Expensive International Shipping: High international demand notwithstanding, current shipping solutions are costly, and customers often have to pay duties or VAT. Storing inventory in different countries is not a viable option, thus limiting scalability.

How Your Current Supply Chain Works

Currently, you purchase inventory in bulk from suppliers and ship it to a local warehouse or your location. This can be done via air freight or sea freight.

  • Air Freight: Takes 7-15 days.
  • Sea Freight: Takes 30-50 days.

Post arrival at the local warehouse, order processing and delivery to the local carrier can take 3-7 days, resulting in total durations of:

  • Air Freight: 15-25 days.
  • Sea Freight: 40-60 days.

Introducing Ships Smart's Solution

At Ships Smart, we are an eCommerce fulfillment and logistics service provider based in Shenzhen, China. We help Shopify brands reduce inventory costs and streamline their fulfillment process, ensuring fast delivery (within 5-10 days) to international customers without them having to pay duties or VAT. This makes it easier for small brands to scale their business.

Solving Key Problems

Problem 1: Long Lead Times

Instead of shipping everything in bulk from China to your local or target countries, we:

  • Ship directly from suppliers to our China warehouse (1-3 days).
  • Process the inbound shipment in 1 day and prepare it for shipping.

Problem 2: Cash Tied Up in Inventory

Previously, you needed to purchase up to two months’ worth of inventory due to long lead times. With our solution, you can cut this by 50%, if not more. For example:

  • Traditional Method: Purchase 1,200 units.
  • Ships Smart Method: Purchase 600 units or even less.

Problem 3: Expensive International Shipping

Let’s compare shipping prices for a 2-pound (900g) package:

  • USA to UK: $ 23 vs. China to UK: $ 10
  • USA to Australia: $ 38 vs. China to Australia: $ 12
  • USA to Germany: $ 22 vs. China to Germany: $ 10
  • USA to France: $ 25 vs. China to France: $ 12

By utilizing our solution, you can cut international shipping costs by half.

Simplifying Your Supply Chain

You simply need to instruct your supplier to send everything to our warehouse in China. Here's the simplified process:

  1. Receive and manage inbound shipments from suppliers.
  2. Process inbound shipments and store inventory.
  3. Ship inventory via our Chinese carrier.
  4. Custom clearance and air freight within 2-5 days.
  5. Delivery by the local carrier to the final customer within 3-7 days.

Total time: 7-15 days, significantly faster than traditional methods.

Keywords

  • E-commerce
  • Shopify
  • Supply Chain
  • Inventory Management
  • Fulfillment Services
  • China Warehousing
  • International Shipping
  • Cost Reduction
  • Business Scaling

FAQ

Q: How does Ships Smart reduce the lead time for delivering products? A: We ship directly from suppliers to our China warehouse and process inbound shipments within 1 day, significantly reducing the overall lead time.

Q: Will I save on inventory costs with Ships Smart? A: Yes, you can cut your inventory purchase by 50% or more, freeing up cash flow for other business needs.

Q: Is international shipping cheaper with Ships Smart? A: Absolutely. By shipping directly from China, you can cut international shipping costs by half.

Q: How fast can products reach international customers using Ships Smart? A: The total time from shipping inventory to final delivery to customers is 7-15 days.

Q: Do customers have to pay duties and VAT with Ships Smart? A: No, customers will not have to pay duties or VAT, making it easier for small brands to scale internationally.

If you have more questions, feel free to book a call with me or send a message. Looking forward to getting to know you and your brand. Cheers!

I hope this provides a clear understanding of how Ships Smart can help you improve your supply chain efficiency and grow your e-commerce business.

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