WCA eCommerce Lunch presentation. Presented by MyUS.com at WCA's 2019 Worldwide Conference in Singapore.

1. Ramesh Bulusu (CEO)
Corey Bonasorte (VP, Compliance & Lane Development)
High-level Approach to eCommerce Lane Development
A Shipper’s Perspective

2. Who is MyUS?
• US-based shipper focusing on consumer-level package consolidation
• Enable global consumers to access billons of products from the US online
marketplace
• Over 2 Million members in 220+ countries and territories
• Shipped over 20 million packages since 1997
• US$1.2 billion in eCommerce exports in the last 5 years
• Catering to consumers, resellers, US online retailers, and regional courier
and postal companies
• US TSA “known shipper” status (for all air carriers; no 24 hour delay to get
on a plane; can be transported on passenger aircraft)
• 7 times winner of Inc. 5000 fastest growing companies

3. Our Mission
To delight our members every time they open a box from MyUS
by treating each package as if it was our own, while displaying
our passion for service and superior global shipping expertise.

4. MyUS’ Value Added Services (past 5 years)
RECEIVED over 25 million ITEMS
IN 12 million PACKAGES
Shipped over 3 million SHIPMENTS
to 200+ countries
CONSOLIDATION RATIO: 4.1
• SALES TAX FREE ADDRESS (7% SAVINGS)
• FREE STORAGE FOR 30 DAYS
• FREE REPACKING
• FREE CONSOLIDATION
• EXPORT DOCUMENTATION PREPARATION
• DISCOUNTED GLOBAL SHIPPING

5. 1. Price – Consumers and small businesses play price arbitrage
2. Availability - millions of products readily available
• Jeans and apparel in all colors and sizes
• Shoes in all styles and sizes
• Popular trendy cosmetics, fashion, and lifestyle
• Latest electronics and computer supplies
3. Authenticity - You are getting a genuine brand name product
Why Shop from the USA?
Loose Laptop Battery

6. What Are People Buying From the USA?
Top Retailers Top Product Categories
Electronics
Cosmetics
Toys/Baby Items
Fashion/Lifestyle

7. MyUS Ships Everything BIG and small…
$80,000 Hermes Purse
Large Kayak
Samsung 85” Curved UHD TV
Car Windshield

8. Best in Class Controls for Regulatory Compliance
• MyUS has a comprehensive trade compliance program with
documented policies and procedures based on Nunn-Wolfowitz Task
Force of established best practices.
• Team of trained and experienced professionals (including a licensed
US customs broker) to handle the myriad regulatory concerns.
• Certified and trained to prepare and tender all classes of hazardous
materials with special focus on lithium batteries given popularity of
consumer electronics.
• System integration of Descartes MSR eCustoms visual compliance
to conduct automated and on-demand screening for sanctions
concerns.
• Established a comprehensive trade control classification program to
ensure proper exports and imports, (including for US encryption
commodities).
• Our Workflow Engine has the ability to restrict certain commodities
groups as well as specific products that may be prohibited for import
into a particular country.
AK-47 Muzzle Break
Rifle Magazine/Ammo Clip

9. • Certified staff with specialized training to ship dangerous
goods / hazardous materials
• MyUS has shipped 140,000+ DG shipments in the last 5
years
• Forecasted to prepare and ship over 60,000 shipments in 2019
• Inhouse inventory of UN Performance Oriented Packaging
and Variable Packaging systems to handle all manner of
dangerous goods
• Lithium batteries
• Larger quantities and volumes for resellers
• Paints
• Perfumes
• Consumer commodities (Nail Polish, Cosmetics, etc)
• Generators
Dangerous Goods
Loose Laptop Battery
Nail Polish
Perfume Kit

10. • MyUS enables postal services and last mile providers with a turnkey technology
platform and fulfillment solution
• Offer your customers direct and easy access to shop online at over 100,000 USA
retailers by providing them with their own USA Address
• You own the website, brand, and customers. MyUS builds and hosts the technology
• Save on international shipping costs with bulk pricing from MyUS
• Utilize your current infrastructure to facilitate customs clearance and last mile
delivery – enables you to offer very competitive pricing!
• Don’t just move others’ volume - take advantage of the global eCommerce market
predicted to reach $4.9T by 2021
MyUS Private Label Solution for Postal and Courier Companies
Open the door to an entirely new revenue stream

11. MyUS Partner Sites

12. High-level Approach to eCommerce Lane Development
A Shipper’s Perspective

13. Audience? Customer?
Audience: Local (country-specific) traditional freight forwarders and logistics service providers
wanting to diversify from conventional commercial freight to the newer and growing consumer
ecommerce cargoes
Who could be your customer?
• Online merchants typically from the US, UK, China, etc. already engaging a foreign consumer
• Shippers like MyUS catering to a global buyer
• Freight forwarders in the above countries arranging logistics for online merchants

14. High-level Approach to ecommerce Lane Development
1. Pricing
2. Middle Mile (air freight)
3. Customs Clearance
4. Last (Final) Mile Services
5. Technology
6. Limitations or Restrictions

15. What’s the big deal about? And Why?
1. eCommerce will be increasingly border-less
2. More consumers, especially younger-mobile-savvy demographic, are buying online
3. Consumers will increasingly and routinely buy products from various online marketplaces
across countries
4. Purchases are increasingly of smaller value, lower weight, and simple in nature
5. Cost of international shipping will make or break the online transaction
6. Fedex, DHL, UPS are good but expensive
7. Consumer expectation is affordable yet fast, reliable shipping
8. A whole-new opportunity for nimble local customs brokerage and/or final mile service
providers

16. What is it (and What is it not)?
1. Individual consumer (consignee) parcels cleared and delivered to the door
2. High volume of parcels but Lower weight often in the 0.5Kg to 5Kg (1 to 10 lbs)
3. Can be any of the thousands of product categories sold online
4. Small quantities of the same commodity
5. Distinct number of commodities could be very large
Therefore:
1. It’s not conventional, traditional commercial freight movement across borders
2. It’s not large quantities of a single commodity
3. It’s not bulk Customs clearance to a single consignee
4. It’s not delivery to a single or a few warehouse location(s)

17. 1. Pricing- Changing the Approach

18. Pricing – Simplicity is the Key
Consumers want fair pricing and simplicity from their providers of choice:
• In order to give the consumer what they want, we must move away
from the mentality of traditional pricing models.
• Volume expectations may remain similar but cargo profiles and where it
all comes from and to who are changing.
• Shifting landscape means pricing models must change.
• Consumer demand will continue to be driver towards parity of Cost of
Merchandise and Cost of Shipping (it will only get more aggressive, with
Cost of Shipping representing smaller portions of that ratio).
• Better pricing means more growth!

19. Preferred Pricing Model – End Goal in Mind
Simplified pricing based on:
• Daily/Monthly volume tiers
• Per Pound or Kilo of Actual Weight
• Per Parcel
• With or without customs clearance
• Clearly defined service levels
• Clearly defined delivery zones
Avoid Pricing that includes:
• Too many fees that make it hard to build a pricing model
• Import Clearance for Manifest fee
• Manifest and/or Terminal Handling fees
• Admin fees
• Service Tax (up to 15%)
• Terminal charges
• Evaluation report for customs fee
• Physical Inspection fee
• Labeling fee
• Overtime/Weekend fees, Wait-time
Clearance + Last Mile Rate (USD)
0.5 KG 3
Additional 0.5 KG 0.5
Example:

20. 2. The Middle Mile

21. Approach to the Middle Mile
-General Cargo/GCR
-will you be able to handle clearance appropriately?
-Courier under AWB/COU
-are there limitations from the carrier or airport on DG? Value?
-Courier Baggage Voucher/UCB CBV

22. 3. Customs Clearance

23. 1. Does your cost structure work for the individual buyer?
2. Do you have the proper Customs permits or internal processes to handle manifest,
courier, or similar clearance modes? (e.g., Section 321 in US)
• Fast track for parcels below the de-minimis value?
3. Automation is a must to bring down cost
• HS mapping for US, UK, China, etc
• Facilitates consistency, accuracy and efficiency
4. Preferably wheels-up clearance so its in and out upon arrival
5. KYC (Know Your Customer) Process?
6. Any potential permits needed ( cosmetics, supplements etc.)?
Approach to Customs Clearance

24. Total Landed Cost/DDP or DDU?
1. Depending on the market, be prepared to offer TLC/FLC
• And be prepared to be accurate!
2. If DDP is not a market driven demand, enabling e-payments proactively for DDU is a differentiator
• DDP is becoming a must, so if the demand has not arrived yet, it will!
3. Being proactive allows you to literally deliver on your promise to the consumer.
Approach to Customs Clearance

25. 4. Last Mile

26. Last Mile - the most important part of the puzzle
1. Do you offer different service levels?
• Standard & Express?
• Ground or Air?
2. Are there size limitations?
3. Are there geographic limitations?
4. Are there Dangerous goods limitations?
5. Do you offer Pick Up at a near-by Access Point?
6. Do you offer Alternative delivery locations
7. Do you offer CoD? Other local payment methods
8. Is there a track & trace service? (This is a must)

27. 5. Technology

28. Technology – External Facing
Three primary categories of information:
1. Customer Info: Names, address, Mobile No., Email, KYC info, etc
2. Parcel Info (Manifest): What’s the Commodity? Quantity, Value? Classification?
3. Tracking: Label and Barcode generation
How do we transmit the above information?
1. Is there a simple yet robust APIs to integrate with? If not, you should.
2. Is there a required nightly file transfer process? Format?

29. Technology – Internal Systems & Processes
Automation is a must to meet consumer’s speed expectations
1. Handle thousands of parcels every day
2. HS classifications based on product descriptions
3. Process to streamline low value vs high value
4. Pre-arrival clearance
5. Barcode Scanning for Operations and Last mile
6. Scalable operations to deliver individual parcels to multiple locations

30. 6. Restrictions

31. Restrictions
1. Dangerous Goods
2. Prohibited Goods
• E-Cigarettes?
• Adult toys
• Wild-life etc.
3. Size or Weight restrictions?
4. Quantity or personal use limitations?
5. Geo restrictions

32. Thank YOU!