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Global Fulfillment - Challenge for Going International

2004-09-25
 

Global Fulfillment

Fulfillment is the process of following through a transaction from ordering through delivery to customers without the finished product going back through the company that has created the product. Fulfillment of physical goods involves product manufacturing, warehousing, assembly, quality control and delivery of product. Companies face many new challenges in distributing goods global.

Shipping Cost

When it comes to global fulfillment, getting the product into the hands of the consumer is harder. The cost of international shipping for certain products can make up to 30-50% of the value of the good shipped, compared to 5%-10% for domes tical shipping. Companies need to absorb the extra shipping costs, particularly for heavier items.

Valued-Added Tax

For products shipping to certain countries, the companies need to pay value-added tax (VAT) and duty. VAT "is a tax levied on a firm as a percentage of its value added, to avoid the multiplying effect of taxes as the product passes through different stages of production. The tax is based on the difference between the value of the output and the value of the inputs used to produce it. The aim is to tax a firm only for the value added by it to the inputs it is using for manufacturing its output." (source eStart).

Multiple-Currency Support

For web-based worldwide storefront needs the support of multi-currency payment processing. Merchants can sell online to the world in the currencies of their choice. shoppers can place orders from anywhere in the world in their own currencies. There are no additional currency conversion fees for the merchants or the customers.



Related Topics
Supply Chain Management Overview - Participants and Processes
What is Fulfillment - Definition, Product Fulfillment and Service Fulfillment
Fulfillment Company, Fulfillment House or Fulfillment Center
E-Fulfillment - Web fulfillment, Internet fulfillment, Online fulfillment

 

 
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