Case Study: Consolidated Shipping Saves The Day

A large US Health & Beauty retailer had been in selling into Canada for a number of years with limited success. They had invested in their US Distribution Center and were very happy with their fulfillment capabilities but Canadian customers complained at the high cost of shipping and additional taxes and duties being applied at the border. Canadian sales were a fraction of what they should have been and they were losing ground against their competition in this important market.

They had very aggressive pricing for domestic shipping but didn’t have the volumes to compete for international rates. Stalco approached them using a consolidated shipping solution and it immediately addressed a number of their issues.

Stalco picked up their Canadian orders directly from their US Distribution Center and brought them to our Distribution Center in Toronto daily. Stalco cleared the goods through customs so consumers wouldn’t get hit those surprise charges and then shipped the products domestically with Canada Post. Even with added cost of trucking the goods to Toronto, Stalco’s huge discounts with Canada Post helped the customer slash their Canadian shipping costs by 40%.

Buyers no longer had to worry about duties and taxes and most importantly, the customer didn’t need to make any changes to their fulfillment process. The process was seamless and it gave the customer incredible flexibility. They timed the pickups to coincide with their volumes and as shipments to Canada picked up during the holiday season, the average cost per shipment got lower. The customer found an easy and cost effective way to reach their Canadian clients and grow their business north of the border.