How Can US Fulfillment Help International Brands?

International brands have a significant growth opportunity in the United States. US shoppers are eager to purchase from international retailers but face many challenges. Capturing new customers isn’t easy, and international brands have certain hurdles to overcome in order to maximize their market share.

In this article, let’s dive into key US eCommerce fulfillment trends and opportunities that can help modern international brands enter the US market, win customers, and retain long-term loyalty.

What Opportunities Does the United States Offer International Brands?

US shoppers crave international goods across a wide range of retail lines. For example, per Radial’s research, 60% of shoppers actively or sometimes seek out international brands for consumer electronics, followed by apparel (59%), footwear (58%), and health and beauty products (56%).

Younger generations are most likely to shop with international brands. Nearly 70% of Millennials and Gen Z will actively or sometimes shop for international apparel for example. Older generations are less likely to shop internationally but gravitate to consumer electronics most often.

While many shoppers are interested in shopping with international brands, these retailers still need to answer a key question: What will connect with and keep the interest of US customers?

What Do US Shoppers Prioritize When Purchasing from International Brands?

To attract and keep American shoppers, international brands should first assess two things: The overall quality of the product and the overall quality of the shopping experience.

Aside from price considerations, which tend to drive purchase behavior across the board, 49% of consumers purchase international brands due to perceived higher quality products versus local brands. And 39% purchase for unique designs or features.

Younger consumers are more willing to pay a premium for a known, trusted international brand. Millennials are most likely to pay premiums (67%), followed closely by Gen Z (61%).

Quality Products Doesn’t Make Up for Poor Shopping Experiences

Shoppers aren’t won easily, and international brands compete with domestic retailers for wallet share. They will need to carefully consider how they communicate quality and value to attract customers.

Per Radial’s research on consumer preferences and expectations for brands, it’s not only the products themselves that drive long-term loyalty. Customers want great shopping experiences—from the website to order delivery. In fact, quality fulfillment is very important to US consumers. Seventy-two percent of consumers say shipping speed and reliability are the most important factors in deciding whether to buy from modern brands. They also want easy and free returns (63%), more than things like brand identity or product personalization.

Providing great fulfillment in the US presents challenges to international brands if they don’t have local fulfillment centers in-country. They will need to assess the best strategy to enter the new market and evaluate potential eCommerce fulfillment partners to support expansion.

How Does High Quality Fulfillment Help International Brands in US Markets?

Leveraging a high quality eCommerce fulfillment solution helps international brands stay competitive in a crowded US marketplace, while also creating the kind of shopping experience shoppers expect.

Navigate a Highly Competitive Market: Brands can work with local partners to navigate unique regulatory and compliance challenges, as well as optimize their fulfillment strategy to meet US customers’ high delivery and returns expectations.

Leverage Domestic Warehousing, Shipping, and Returns: Rather than dealing with importing inventories directly to the new market, international brands can leverage a 3PL partner’s domestic warehousing operations, shipping network, and fulfillment and returns infrastructure. This improves delivery and returns options, as well as inventory management and reporting.

Navigate International Imports with FTZ Warehousing: US import/export compliance is complex and ever-changing. International brands can work with 3PL partners to leverage FTZ warehousing, which can help reduce costs and streamline inventories entering or exiting the US.

How do FTZ Warehouses Help International Brands?

A Foreign-Trade Zone (FTZ) warehouse is a secure, designated area in the US that exists outside of US customs territory. It is under US Customs and Border Protection (CBP) supervision. This lets retailers import and hold inventory in the US without paying applicable duties when the goods enter the country. Instead, the associated duties are paid after the inventory is sold. Retailers can use FTZs strategically to manufacture, store, repackage, and inspect goods before paying associated duties. They only pay when the inventory is sold within the US market.

An FTZ warehouse offering helps international brands stay flexible and efficient while delivering real savings when it matters most. Brands can:

Defer Duties: When leveraging FTZ warehouses, retailers only pay duties when products are sold—and only if the products are sold. This improves cash flow, since retailers retain the money they would immediately have to spend on duties until after a sale is made.

Reduce Administrative Costs: With an FTZ warehouse, retailers can consolidate multiple shipments under a single processing fee, and there are fewer reconciliations and filings required.

Manage Tariff Impacts and Simplify Re-Exporting: FTZ warehouses can provide specific tariff benefits to retailers, reducing overall rates for finished goods, streamlining processing fees, and even allowing brands to sidestep US tariffs for internationally bound orders stored in the US.

Improve Cash Flow: FTZ warehouses allow retailers to defer paying duties until goods are sold. This creates significant cash flow flexibility, with the preserved capital being available for other strategic efforts.

Order Processing and Fulfillment in the Same Facility: Unlike bonded warehouses, retailers can both process orders and fulfill them in the same facility. This streamlines operations and improves fulfillment and delivery to customers.

What are the Benefits of Working with a US 3PL for International Brands?

International brands can seek US-based third-party logistics (3PL) partners to accelerate market entry, reduce operational challenges, and improve order fulfillment and returns management.

Accelerate Market Entry: Operating US-based facilities requires time, resources, and capital. International brands can accelerate entering the US market by partnering with a highly experienced US-based 3PL, then leverage that partners network to rapidly expand across the United States. Likewise, brands can leverage 3PLs’ transportation management solutions to gain optimal parcel rates.

Improve Inventory Management and Order Fulfillment: Effective inventory management and order fulfillment is critical for meeting US shoppers’ delivery expectations and promotes long-term loyalty. It requires efficient coordination between various departments, streamlined processes, and effective customer communication. Proven 3PL partners can manage the complexities of inventory management and order fulfillment on behalf of international brands, letting those brands focus on their own core competencies.

Optimize Returns Management: US customers expect easy returns, leaving international brands with the complex, costly task of managing the reverse logistics process. Nearly half (48%) of retailers currently manage returns in-house. This can create significant operational headaches as brands grow and scale. It requires dedicated labor, processes, and technology considerations to manage efficiently and effectively. Partnering with a 3PL streamlines and simplifies the returns process for retailers, while reducing costs and improving customer experiences.

How Does Radial Support International Brand Expansions into the US?

For many international brands, working with a US-based logistics partner can create long-term success while reducing the risks market expansions often incur. For example, Radial has 40+ years of operational experience and has supported many international brands seeking to enter new markets in the US and Canada.

Easily expand your brand, grow, and scale: Connect with ease to hundreds of DTC and B2B channel partners quickly and distribute seamlessly from Radial facilities.

Simple, convenient, pay-as-you-go storage: Pay for what you need with no upfront costs. No long-term contracts required. The ideal solution for brands seeking flexibility as they grow and scale amid supply chain disruptions.

Leverage operational stability to drive great customer experiences: Radial offers 99.98% order accuracy and 99.84% on-time shipping, which means you and your customers get the stability and consistency necessary to deliver great fulfillment experiences.

Faster, cost-effective shipping: Simplify delivery with Radial’s transportation and last mile solutions. We work with carriers to find the best balance of speed and cost.

Ditch returns headaches: Leverage streamlined technology and processes. Make returns, one of the toughest challenges of US fulfillment, easy.

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Radial’s experts are dedicated to providing industry-leading insights designed to equip modern brands to meet supply challenges and win long-term customer loyalty.