Retail surgery: Launching a US website

The US is a tough market for UK retailers to crack and much hinges on the success, or failure, of their supply chain and product fulfilment.

One common way to test the water is to first establish a web-based platform from which to grow your brand. The key question once you have launched the website is how you fulfil orders, remain competitive and meet the expectations of your new American customers.

Grant Liddell, retail director at logistics firm Uniserve, says there are several models that can be adopted. These include dispatch from the established UK distribution centres, direct dispatch from an origin-sourcing hub, or holding stock in a US distribution centre either through a third-party contract logistics provider or managing the operation yourself. He says: “The main criteria for selecting the model would be based on the economy of scale and scalability.”

There are many other factors to consider, too. Liddell says that one area where a lot of retailers come unstuck is tax and duty costs. “If you’re dispatching from the UK, per consignment, orders must be under $200 (£121) to avoid US local duty and tax liability,” he says.

Ultimately, the supply chain model requires serious consideration before any launch or sales portal is put in place as there is no point gaining new sales if the management and administration costs outstrip any revenue stream and profit potential. As Liddell says: “This will be one of the key elements in achieving a successful US business.”