Leveraging Speed, Cost Savings, and Cross-border Capability to Capture International Markets
Direct injection shipping has transformed the logistics landscape, especially in e-commerce, by enabling retailers to reach international customers faster and at lower costs. Unlike traditional shipping models that rely on regional warehouses or complex multi-leg journeys, direct injection bypasses these steps, simplifying cross-border operations and ensuring products get into customers' hands with minimal delay. For e-commerce businesses, this efficiency has become critical—not only for managing shipping expenses but also for meeting customers’ rising expectations for swift, reliable deliveries. As this chapter explores, direct injection shipping opens up new possibilities for all types of online retailers, from household brands like Shein and Temu to small and medium-sized businesses aiming for global reach.
How Shein and Temu Leverage Direct Injection
Direct injection shipping has been pivotal for e-commerce giants like Shein and Temu in capturing substantial market share across international borders. By circumventing traditional distribution networks and leveraging a highly efficient model, these companies can provide rapid deliveries at lower costs, building a customer base that values both speed and affordability.
In 2023 Shein commanded a 40% share of the fast fashion segment in the US, contributing to its $26.15 billion in annual revenue. The company's "QuickShip" option, which relies on bulk imports and efficient shipping routes, exemplifies how direct injection can enhance operational efficiency.
Shein and Temu leverage direct injection to optimise their supply chain, minimising the number of touchpoints and reducing warehousing needs by consolidating shipments at a single point before dispatch. By doing so, they save significantly on warehousing and distribution costs.
Shein and Temu also benefit from reduced transit times, using direct injection’s pre-clearance at customs and priority for air transport. This strategy enables both companies to promise swift delivery times, even internationally, meeting the high expectations of today’s online shoppers.
This is done by sending individually addressed packages, rather than sending stock in bulk - most of which enter the U.S. under the "de minimis" trade provision that exempts them from tariffs. A June report by a U.S. House of Representatives committee estimated that Shein and Temu together bring in nearly 600,000 packages a day under the exemption.
Quick delivery times at competitive shipping rates have become a hallmark of both brands, driving customer satisfaction and repeat purchases. With direct injection, these companies not only fulfil customer expectations but also build loyalty through consistent, reliable service across borders.
Borderless360 Insights
Head over to our blog to see how these brands are disrupting traditional e-commerce shipping models here.
Changing the Game for Small and Medium-sized Retailers
Direct injection isn’t only for large players—it’s a game-changer for small and medium-sized retailers looking to enter new markets without the complexity of traditional logistics.
By leveraging direct injection, smaller retailers can ship directly from manufacturing sites to target markets, often bypassing the need for regional warehouses. This streamlined approach minimises operational costs and gives these retailers a chance to compete with larger brands on delivery speed and cost.
With competitive shipping rates and reduced import duties due to consolidated shipping methods, small businesses can reach new customers globally without the upfront costs typically associated with international logistics. For example, under Section 321, US shipments valued below $800 are exempt from import duties, enabling retailers to offer attractive prices to American customers.
Direct injection also offers flexibility, allowing smaller retailers to test new markets with minimal commitment. As demand grows, they can scale their shipments accordingly, adapting to market conditions while keeping logistics costs manageable.
The Impact on Customer Experience
In today’s market, delivery speed and transparency have become cornerstones of customer satisfaction. Direct injection enables retailers of all sizes to meet these expectations and provide an enhanced shopping experience.
By streamlining transit with fewer handoffs and ensuring packages are labelled for final-mile delivery early, direct injection significantly reduces the time products spend in transit. The reduced number of touchpoints and reliable tracking add to customer confidence, ensuring buyers know where their products are every step of the way.
Faster, more affordable shipping doesn’t only please customers; it fosters loyalty. As e-commerce continues to grow, customers are choosing brands that prioritise their experience, and direct injection allows retailers to meet or exceed these evolving standards.
Case Study: Borderless360 in Action
A recent example from Borderless360 illustrates how our direct injection services help small-to-medium e-commerce businesses expand their global reach without sacrificing operational efficiency or customer satisfaction.
Our client, a health supplement brand who manufactures their products in China, serves a growing international customer base. With products targeting wellness-conscious consumers, they needed a logistics partner to navigate complex, cross-border shipments seamlessly and cost-effectively.
The company was growing very fast. Their volume tripled within the year and so they needed a partner that could scale with demand in new markets. Previously, the retailer's operations involved multiple intermediaries, adding unnecessary complexity and cost. Hurdles like customs clearance across different countries with varied regulations also needed a logistics strategy without compromising on delivering a seamless experience to customers.
Borderless360’s Direct Injection service allowed them to move from multiple third parties to a single streamlined system. This simplified process has cut delivery times, reduced costs, and allowed the retailer to serve their customers faster. The strategy Borderless360 tailored to the client’s needs involved consolidating shipments in Hong Kong and pre-labelling orders for final-mile delivery. Through strategic airline partnerships, we secured reliable cargo space, ensuring prompt dispatch. Every day flights carry customer orders into Australia, the UK, and other regions, injecting straight into trusted carriers like Australia Post and Royal Mail. It’s a familiar last-mile experience for customers with an economic advantage the retailer can pass onto their customers.
With Borderless360, they were able to achieve:
By optimising their logistics with direct injection, this retailer has reached a wider customer base, enhanced its international reputation, and built a loyal following, demonstrating the transformative potential of direct injection for businesses of all sizes.
