1) The document discusses trends in US consumer behavior during COVID-19 including increased online shopping and expectations for faster delivery times. 2) It outlines opportunities and advantages for Canadian sellers in the US market, including section 321 which allows duty-free entry for low-value goods and FDA clearance. 3) Challenges of peak holiday shipping are presented, as carriers are expected to impose caps which may cause delays, and strategies are suggested for optimizing shipping.

2. TBC • 2020
IMTIAZ KERMALI
VP, Sales & Marketing
RICK HERNANDEZ
VP, Business Development & Commercial
Innovation

3. eShipper x Pitney Bowes
Understanding the “new normal” US consumers
• Current US consumer market and trends
• Opportunities for Canadian seller
• Section 321, FDA clearance, induction point advantage
Holiday shopping & shipping different this year due to COVID
The inevitable - carrier delays & peak season shipping
• Private carrier caps will spook you this season
• Optimizing your shipping strategy
AGENDA
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2
3
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4. /01
ESHIPPER X PITNEY BOWES

5. If you are not yet selling in the US, you are
missing out on a big opportunity.
If you do sell in the US, are you selling the
right way?
eShipper has partnered with Pitney Bowes allowing
Canadian shippers to extend their customer base
while also meeting the delivery expectations of US-
based consumers
Pitney Bowes being the largest revenue partner to
the United States Postal Service- what this means
for a Canadian business?
This partnership makes it easier for Canadian businesses
to serve their consumers south of the border while
optimizing their costs and delivery times.

6. UNDERSTANDING THE “NEW NORMAL”
US CONSUMERS
/02

7. PITNEY BOWES BOXpoll™
Pitney Bowes BOXpoll is a series of consumer surveys about current
events, culture and their impact on shopping behaviors and
ecommerce logistics.
One of the first national surveys asking respondents to contemplate a
post-pandemic world
POST PANDEMIC WORLD
WEEKLY SURVEY
Weekly consumer survey allows us to iterate, learn and provide our
external stakeholders with valuable data they can apply to their
business

8. The percentage
of consumers doing more
than half of their shopping
online is still nearly triple
PRE-PANDEMIC LEVELS.

10. ACCEPTABLE
3.9 days is considered
“acceptable”
SLOW
6.5 days is
considered “slow”
RECONSIDERING THE NEED FOR SPEED
FAST
2.3 days is
considered “fast”
COVID HAS adjusted shipping expectations
AMAZON CREATED THE 2-DAY SHIPPING EXPECTATION,
BUT IS THAT WHAT CONSUMERS REALLY WANT?

11. TAKEAWAY
• Consumers are willing to spend around
$11.50 for “fast” shipping
• Retailers spend around $7/package for
“free” delivery
• As a retailer, find a carrier who can
deliver you fast/expedited delivery for
under $18
Make speed a revenue
generator

12. DELIVERY TRACKING IS ANNOYING
64% 40% 30% 16%
of consumers are
more annoyed by
delivery tracking
are more annoyed
with tracking now
than before COVID-
19
said any contact
with a human being
was the most
annoying
said it’s annoying to
track a package
through a retailer’s
website
Delivery tracking
creates stress and
anxiety
• Put tracking directly on the site…like Amazon
• Don’t bombard consumers with tracking emails
• Look at alternatives like SMS messaging

13. THE NEED FOR SPEED

14. UNDERSTANDING THE “NEW NORMAL” US CONSUMERS (CONTD.)
• This pandemic has completely changed the
landscape of consumer behaviour across
the world
• While department stores are expected to
decline by over 60%, e-commerce is
expected to grow by nearly 20% in 2020
OPPORTUNITIES FOR CANADIAN
SELLER
• In order to target over 350mn US consumer
base section 321 allows for goods valued at
$800 USD or less, to enter duty-free into
the U.S.
• Section 321 also applies to products that fall
under the purview of FDA
• Avoiding congested induction hubs,
especially during peak times
SECTION 321 & FDA
CLEARANCE

15. HOLIDAY SHOPPING & SHIPPING DIFFERENT
THIS YEAR DUE TO COVID
/03

16. 33% of retailers project web
sales this holiday season to
increase as much as 24%,
while an additional 34% are
predicting gains of 25% or
more. The remaining
retailers project flat sales
(11%) or a downward trend
(22%).
63% of retailers believe
consumers will be more
cautious based on
circumstances. Yet, 40%
are optimistic that there
will be a shopping frenzy,
given pent-up demand,
according to the survey.
Surveys and data
continue to point
to ecommerce
being the winner
for the rest of 2020.

17. Wall Street
Journal
“FedEx, Strained
by Coronavirus,
Caps How Much
Retailers Can Ship
From Stores”
Freightwaves
PRIVATE CARRIER CAPS WILL SPOOK YOU THIS SEASON
Logistics
Management
Memphis
Commercial
Appeal
“Peak season pain
looms for FedEx,
UPS shippers”
“FedEx service
capacity issues
have left many
shippers
scrambling”
“FedEx announces
peak season
surcharges, follows
UPS and Postal
Service”

18. THE INEVITABLE - CARRIER DELAYS & PEAK
SEASON SHIPPING
/04

19. Impact of shipping delays on your business and
customers
• Eroded brand reputation
• Poor online reviews
• Increased volume of support calls
• Increased customer churn
• Reduced revenue over time
Introducing PBX- we made shipping from
Canada to the US more affordable and faster
for you

20. AN ORGANIZATION AT SCALE
We work with many of the world’s best known – fastest growing brands

21. • One stop shop for all your eCommerce and B2B
shipping needs.
• We offer highly competitive shipping rates from every
tier 1 carrier including FedEx, UPS, DHL, Aramex,
Purolator, Canada Post and USPS
• First online shipping platform in Canada in 2005
• Seamless integration with all major online stores and
marketplaces
• Tailored supply chain solutions for businesses of all
sizes
• The #1 choice for over 20,000 businesses in North
America
• Dedicated Account Managers and Customer Support
for every business regardless of size

22. RESOURCES
• Cross-Border Shipping PBX
• BoxPoll
• State of US Consumer
• Pitney Bowes
• eShipper