FIGHTHAUS, a fast-growing fighting brand headquartered in Canada, was facing significant challenges with its shipping and fulfillment operations in the United States. The company's expansion into the U.S. market led to huge demand for its products, but the existing logistics setup struggled to meet customer expectations, resulting in delayed deliveries, customer complaints, and increased shipping costs.
The FIGHTHAUS team was spending far too much time and resources on managing their current 3PL, which was slow to send out orders, had poor inventory management and slow shipping times, ultimately delivering a sub-par experience to their customers. At the same time, their Canadian customers were being charged surprise duties and taxes on their orders, resulting in angry customers and abandoned shipments.
Leveraging Section 321 benefits
In light of these challenges, FIGHTHAUS decided to reassess its logistics strategy. After speaking with 247 Fulfillment, the team recognized the opportunity to streamline operations by bringing its inventory back to Canada, capitalizing on Section 321 regulations and eliminating customs fees for its Canadian customer base while maintaining fast shipping times for their U.S. customers.
By consolidating shipments and taking advantage of Section 321 regulations, FIGHTHAUS could ship to the U.S. without incurring duties, taxes, or customs fees while providing a similar experience for their Canadian customers. No more surprise customs charges!
247 Fulfillment's expertise in logistics and order fulfillment allowed FIGHTHAUS to focus on its core business activities while leaving the complexities of warehousing and shipping to the experts. Prior to partnering with 247, FIGHTHAUS had an average fulfillment time of 26 hours - unacceptable by today's standards. After partnering with 247, FIGHTHAUS' average fulfillment dropped 55% to 11.7 hours.
At the same time, 247's technology and operational excellence reduced inventory shrinkage from 10% to 2%, ensuring accurate stock levels at all times to drive sales and satisfy exchanges and returns.
Enhanced customer experience
With faster shipping times and no additional customs fees for Canadian customers, FIGHTHAUS improved overall customer satisfaction and loyalty, allowing them to grow their Canadian revenue as a % of total revenue by more than 110%.
As more brands take advantage of the low barrier to entry for international trade, it's as important as ever to establish your foothold in major markets like Canada. By partnering with 247 and ensuring a great last-mile experience for their customers, FIGHTHAUS is now able to focus their efforts on marketing, product development and increasing their market share in Canada.
Although it has not been measured, the FIGHTHAUS team is confident that their partnership with 247 has contributed directly to their bottom line through cost savings and increased customer loyalty.
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