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    Rayan Osseiran's Presentation Kit

    Uploaded by

    Isah Ramos
    Expand to New Markets Through Localizing Fulfillment Centers

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Rayan Osseiran's Presentation Kit

    Uploaded by

    Isah Ramos
    6 views16 pages
    Expand to New Markets Through Localizing Fulfillment Centers

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    Expand to New Markets Through Localizing Fulfillment Centers

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    6 views16 pages

    Rayan Osseiran's Presentation Kit

    Uploaded by

    Isah Ramos
    Expand to New Markets Through Localizing Fulfillment Centers

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 16

    2

    Three main problems faced when selling across new markets

    Customs Duty Fees &


    I High Cost of Air Freight II Inspection Delays III Lengthy Delivery Timings

    3
    High Cost of Air Freight Deep Dive: Let’s look at the unit
    economics for once

    Item Cost Cost in $ Percentage

    FCL Shipping Cost Per Order $ 1.50 5.9%

    Storage Cost Per Order $ 0.87 3.4%

    Fulfillment Cost Per Order $ 1.92 7.5%

    International Delivery Cost Per Order $ 21.10 83.2%

    Total $ 25.38 100%


    4
    With more and more global issues, we can only expect costs
    to rise

    5
    Adapt through Alternatives

    6
    Fulfillment
    Localization

    KSA Oman UAE Kuwait Bahrain

    7
    By localizing your fulfillment, almost a 50% cost reduction can
    be achieved…

    Cost Item Cost Under Scenario 1 Cost Under Scenario 2


    (International FC) (Local FC)

    FCL Shipping Cost Per Order $ 1.50 $ 1.87

    Storage Cost Per Order $ 0.87 $ 1.09

    Fulfillment Cost Per Order $ 1.92 $ 2.40

    International Delivery Cost Per Order $ 21.10 $ 7.87

    Total $ 25.38 $ 13.23


    8
    In addition, a whole range of other benefits would be realized

    Reduced Customs
    Shipping Times Uniformity

    Feasible Return Further Risk


    Management Mitigation

    9
    To-Do This There are 4 Key Areas To Look Into

    Importer/Merchant on Warehousing &


    Product Registration Last-Mile Delivery
    Record Fulfillment

    10
    I – Importer / Merchant on Record
    What is it? Why do I need it?
    • It is required in order to be
    • When importing products in
    permitted to import into
    bulk into a new market, a
    several countries
    importer or merchant on
    • Most often it is the entity that
    record is the entity declaring
    will interact with the customs
    the shipment in the local
    authority for clearing the
    market
    shipment

    How can I get it? Alternatively?


    • Alternatively work with local
    • Usually obtained by distributors
    registering a company and OR
    then registering the company • Work with Fulfillment Centers
    with Customs Authorities that provide the IOR service

    11
    II – Product Registration
    What is it? Why do I need it?
    • Government requirement on
    • Required to import certain
    importer products
    types of products (e.g. Food,
    • Checks on health & safety are
    Chemicals, Cosmetics) that
    made
    first need to be vetted by
    • Complex & often technical
    authorities

    How can I get it? Alternatively?

    • Coordinate with product


    • Local Distribution Companies
    registration companies by
    • Local Fulfillment Centers
    submitting product specs

    12
    III - Warehousing & Fulfillment
    What is it? Why do I need it?

    • Warehousing and fulfillment is


    the storage of products within • Warehousing and fulfillment is
    a warehouse where orders to required as a local operation
    customers or businesses will for your new market presence
    be prepared

    How can I get it? Alternatively?

    • Traditionally rent a • Alternatively, today fulfillment


    warehouse, fit it out and centers offer the service as a
    operate it plug and play solution

    13
    IV – Last-mile delivery
    What is it? Why do I need it?

    • Last-mile or courier delivery is • In order to deliver to a wide


    the use of vehicles to deliver network of customers, both
    the products to customers locally and globally

    How can I get it? Alternatively?

    • Traditionally it would require • Now courier companies


    you to handle deliveries provide the service in order to
    yourself maximize coverage

    14
    In the context of the MENA region, you get access to more
    than 50 Mn new customers
    What does a fulfillment center help with?

    Importing and storing your products in the warehouse

    Registering the products with local authorities

    Picking & packing orders according to your specifications

    Collecting cash, managing returns & recalls

    Affordably and quickly elivering them to customers across the


    GCC & MENA Region

    15
    Unboxing
    E-Commerce
    [email protected]
    Fulfillment
    +971 56 748 7954
    Founder & CEO

    16

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