Expanding to the US Market: A Guide to Order Fulfillment and Shipping for UK Businesses

For UK businesses looking to expand their eCommerce operations internationally, the United States presents an enticing opportunity. 

With a population of over 330 million and an eCommerce market valued at a colossal $1.2 trillion in 2023, the US offers immense potential for growth.

But the numbers only tell part of the story, as the US market is also dynamic, innovative, and constantly evolving. 

And while there are certainly differences in consumer behaviour and preferences between the US and UK, sharing a language and common cultural touchpoints offers a solid foundation for brands to build upon.

However, successfully tapping into the US market requires more than just making your products available to US consumers. 

It demands carefully planned order fulfillment and shipping strategies – essential elements that can make or break your expansion efforts.

This guide explores how UK businesses can expand to the US successfully, examining US logistics, inventory distribution strategies, and best practices for optimising the customer experience for US buyers. 

By the end, you’ll clearly understand what it takes to successfully expand your eCommerce operations across the Atlantic.

Overview of challenges in fulfilling US orders

While the rewards of entering the US market are undoubtedly substantial, it’s not something you can easily do overnight, especially without a plan. 

There are challenges to overcome, both practically, legally, and economically, including:

The US Has a Complex Geographic Make-Up

First, the US is vast, spanning six time zones and nearly 10 million square kilometres. The distance between major cities can be enormous – it’s further from New York to Los Angeles than from London to Moscow. 

This sheer size means that a single fulfillment center, which might suffice for UK operations, is inadequate for serving the entire US market. 

US Customers Have High Expectations

Secondly, US consumers have high expectations when it comes to shipping and delivery. 

Thanks to services like Amazon Prime, many US shoppers are accustomed to fast, often free shipping.

The bar for customer satisfaction is high, with many expecting two-day or even same-day delivery options – even despite the country’s size. 

Meeting these expectations can be challenging for new market entrants. 

Shipping Regulation and Tax Complexity

Thirdly, regulatory compliance in the US can be a maze. Each state may have its own tax laws and regulatory requirements, adding layers of complexity to nationwide operations. 

Complying with US customs, understanding varying state-level regulations, and ensuring compliance with federal standards all require careful attention and often specialised knowledge.

How Shipping and Logistics in the US Works

The US shipping and logistics industry is an exceptionally complex, well-oiled machine.

Understanding how it works is key to overcoming obstacles and setting up successful fulfillment operations. 

This next section breaks down how the US shipping system works and what it means for business expansion.

US Shipping Zones and Their Impact on Delivery Times and Costs

One of the key differences between shipping in the UK and the US is the concept of shipping zones. The country is divided into shipping zones, which play a fundamental role in determining both delivery times and costs.

Typically, there are eight shipping zones in the US, based on the distance from the point of origin:

• Zone 1: 0-50 miles
• Zone 2: 51-150 miles
• Zone 3: 151-300 miles
• Zone 4: 301-600 miles
• Zone 5: 601-1000 miles
• Zone 6: 1001-1400 miles
• Zone 7: 1401-1800 miles
• Zone 8: 1801+ miles

Understanding these zones is essential for several reasons. 

Firstly, delivery times generally increase as you move up the zones. While a package sent to Zone 1 might arrive the next day, a package sent to Zone 8 could take a week or more with standard shipping. 

Secondly, shipping costs typically increase as you move up the zones. Shipping to Zone 8 can be significantly more expensive than shipping to Zone 1 or 2. This cost difference can eat into your profit margins if not carefully managed.

Major US Carriers and Their Services

The US is home to a few major shipping carriers, many of which you’ll have heard of already. Here’s a brief description of the primary carriers you’ll likely work with when shipping in the US:

Carrier	Key Features
United States Postal Service (USPS)	Official postal service of the United States Operates as an independent agency of the federal government Cost-effective for smaller packages Often preferred for last-mile delivery in remote areas
UPS (United Parcel Service)	Strong global reputation for reliability Extensive tracking Strong in B2B deliveries Handles large volume of eCommerce shipments Cost-effective for larger or heavier packages
FedEx	Renowned for overnight delivery service Often chosen for time-sensitive deliveries
DHL	Less prominent in domestic US shipping Excels in international logistics Suitable for managing shipments between UK operations and US fulfilment centres

Customs and Regulatory Considerations

As noted, shipping both to the US from the UK and across the US introduces some legal and regulatory complexities, including:

Customs Duties and Taxes

The US Harmonized Tariff Schedule (HTS) determines import duties based on product classification. 

For eCommerce businesses, there’s a silver lining: shipments valued under $800 often enter duty-free under Section 321, reducing costs for lower-value items.

FDA Regulations

Selling food, beverages, cosmetics, or medical devices? You’ll need to comply with Food and Drug Administration (FDA) rules. 

This impacts everything from how you label your products to the safety standards you must meet. For instance, cosmetics sold in the US must list ingredients in descending order of predominance, using common names.

CPSC Standards

The Consumer Product Safety Commission sets strict safety standards, particularly for children’s products. 

These differ from UK or EU standards. For example, children’s items must comply with specific lead content limits and undergo testing by CPSC-accepted laboratories.

State-Specific Rules

Don’t forget that individual states can have their own regulations. 

California’s Proposition 65, for instance, requires warnings on products containing certain chemicals. Some states also have specific rules for items like alcohol or upholstered furniture.

In the next section, we’ll explore how to effectively distribute your inventory across the US, balancing cost-efficiency with rapid delivery to your customers.

Strategies for US Fulfillment Operations

When expanding to the US market, you’ll need to carefully consider how to set up and manage your fulfillment operations. 

The foundations you lay here will influence everything from shipping costs to delivery times and overall customer satisfaction. The more detailed and higher quality the plan, the better the odds of quick and sustained success. 

Centralised vs. Distributed Inventory Models

First off, here are two main approaches to inventory distribution in the US:

1. Centralised Inventory Model: This involves storing all your stock in a single location. It’s simpler to manage but may result in longer delivery times and higher shipping costs for customers far from your fulfillment center.
2. Distributed Inventory Model: This approach spreads your inventory across multiple fulfillment centers. While more complex to manage, it can significantly reduce shipping times and costs.

Many UK brands start with a centralised model when entering the US market and then shift to a distributed model as they grow. 

Your choice will depend on factors like your product range, order volume, and customer locations.

Choosing Optimal Fulfillment Centre Locations

Selecting the right locations for your fulfillment centers is key if you opt for a distributed model. Popular areas for fulfillment centers in the US include:

• East Coast: New Jersey, Pennsylvania (near major population centres)
• Midwest: Ohio, Kentucky (central location for nationwide distribution)
• West Coast: California, Nevada (access to major ports and western population centres)

Partnering with Third-Party Logistics Providers (3PLs)

For UK businesses looking to enter the vast US market, partnering with a third-party logistics (3PL) provider can be the key to success. 

A 3PL offers outsourced logistics and fulfillment services, handling everything from warehousing and inventory management to order processing and shipping. 

J&J Global Fulfilment is an example of a 3PL that offers deep, expert services to support expanding UK businesses. 

Founded in 2010, we’ve grown into a global operation with strategically located fulfillment centers across the UK, Europe, North America, and Australia.

We operate three large strategically placed fulfillment centers for shipping across the entire North American continent:

1. East Coast (Columbus, Ohio): Our Ohio facility provides quick access to major population centres and offers 1-3 day shipping across much of North America. The strategic location allows for efficient distribution to both East Coast cities and Midwest regions.
2. West Coast (Las Vegas, Nevada): Located just 50 miles from the California border, this centre efficiently serves the West Coast market. It’s ideally positioned for businesses targeting customers in California, Oregon, Washington, and other western states.
3. Canada (Toronto): Our newest addition in Toronto allows us to serve the Canadian market effectively, providing a strategic gateway for businesses looking to expand across North America.

The Benefits of Partnering With a 3PL For US Fulfillment

The benefits of partnering with a 3PL like J&J for shipping across North America are numerous:

Benefit	Why It Helps
Scalability	Handle large increases in orders without hiring additional staff or expanding warehouse space when partnering with J&J
Expertise	J&J helps with customs requirements and compliance best practices for shipping across North America
Cost Savings	Lower shipping rates due to J&J’s bulk carrier contracts, elimination of warehouse rental needs, and more efficient operations
Time Savings	Outsourcing fulfillment to J&J frees up time to focus on business growth, product development, and marketing
Technology	J&J’s proprietary ControlPort™ software integrates with eCommerce platforms like Shopify, providing real-time inventory updates, order tracking, and detailed analytics

Case Studies: Successful US Expansion with J&J

Let’s look at how two UK brands made waves in the US with J&J’s support:

Dotty Dungarees

• Challenge: Dotty Dungarees needed to expand into the US market while managing rapid growth and a diverse product range.
• Solution: We set them up with our Ohio fulfillment center, integrating their Shopify store with our ControlPort™ system for seamless order processing.
• Result: Co-founder Alice Goldsmith said it best: “We genuinely wouldn’t have been able to expand into America without James and James. They catered for us as a smaller, rapidly growing brand with a lot of SKUs of different styles and colours – and at a competitive price.”

Karta Bottle: From TikTok Fame to US Game

• Challenge: After going viral on TikTok, Karta Bottle needed to fulfil US orders fast.
• Solution: We handled their entire fulfillment process, freeing them to focus on riding their wave of success.
• Result: Founder Pete Anwyll saw a dramatic shift: “Previous to James and James my market share in the US was around 5%. Since I started using the US Fulfillment Centre, it’s increased to 55%.”

These success stories and many others you can read here highlight how J&J’s expertise and technology empower our partners to successfully expand into the US market.

Order Fulfillment Process for the US Market

Let’s turn our attention to the actual fulfillment process for shipping in the US. The process might seem similar on the surface, but the scale and expectations in the US market can catch many off guard.

Receiving and Processing Orders

Customers expect their orders to be processed almost near-instantly, which requires a smooth, tightly integrated pipeline between sales channels and the fulfillment 

J&J Global Fulfilment’s ControlPort™ software integrates with popular eCommerce platforms like Shopify. The moment a customer hits ‘buy’, ControlPort™ captures all the essential details:

• Customer information
• Product specifics
• Shipping preferences
• Any special instructions

Order processing automation increases order speed and accuracy. By eliminating manual data entry, you reduce potential errors that could lead to shipping delays or other issues. 

Picking and Packing Best Practices

Once an order is in the system, the warehouse team begins to pick and pack it for shipping.

J&J Global Fulfilment boasts a 99.9% pick and pack accuracy rate. How do we achieve this? Through a combination of smart technology and well-optimised processes:

• Optimised warehouse layout: Fast-moving items are placed for easy access.
• Barcode scanning: This ensures the right products are picked every time.
• Quality control checks: Multiple checkpoints catch any potential errors.
• Appropriate packaging: Using the right size packaging protects the product and saves on shipping costs.

These practices allow J&J to dispatch 98% of orders on the same day they’re received, accelerating the entire shipping process. 

Shipping and Tracking

Detailed tracking has become the norm. J&J partners with major carriers to offer a range of shipping options, from economy to express delivery. 

Through ControlPort™, you’ll obtain detailed end-to-end tracking data, allowing you and your customers to monitor shipment progress in real-time.

Order transparency both satisfies customers and reduces customer service inquiries about order status and ETAs. 

Returns Management

Some 82% of customers assess a business’s return policies prior to purchasing, and 54% state they’d actively avoid those that charge for returns. 

Fully managed returns are often necessary to ensure the process is handled professionally. For example, J&J offers a fully managed returns solution, including:

• Receiving returned items
• Inspecting the returns
• Updating inventory levels
• Processing refunds or exchanges

Optimising Customer Experience for US Buyers

In the ultra-competitive US market, customer experience can make or break your business. 

This is particularly true for businesses expanding overseas, as your ability to deliver an excellent service from the outset directly impacts brand traction and reputation.

Here are a few pointers for meeting and, preferably, exceeding customer expectations:

Meeting Delivery Time Expectations

As noted, people are beginning to see next-day delivery as standard, but only 49% of US retailers currently offer it. This might surprise people in the UK, but consider how far parcels need to travel to reach everywhere in the US, especially more rural or isolated areas. 

However, the low adoption of next-day delivery presents a chance for businesses to differentiate themselves by offering faster shipping. Strategically placed fulfillment centers make this possible. 

For example, J&J’s centres in Ohio and Nevada help our partners reach most US locations efficiently, enabling faster delivery times nationwide.

Offering Multiple Shipping Options

US customers appreciate a choice of delivery times and prices. Some will always opt for the fastest shipping, while others are happy to wait a bit longer to save on costs. 

In fact, as many as 38% of US customers don’t choose next-day delivery. 

By leveraging partnerships with multiple carriers, you can offer a range of options, including next-day, two-day, or economy shipping, allowing customers to balance speed and cost according to their needs.

Providing Clear Shipping Information and Policies

Customers want to know exactly when their order will arrive and how much shipping will cost before they complete their purchase.

This means offering customers real-time shipping information at the point of sale, including:

• Available shipping methods
• Costs for each method
• Estimated delivery dates

Being upfront with this data information sets correct expectations and can reduce customer service inquiries.

Localising Customer Service for US Customers

Besides fulfillment processes, you’ll also need to consider how to provide customer service to US buyers. Consider:

• Offering support during US business hours
• Using US English spelling and terminology
• Being familiar with US-specific shipping and returns norms

Cost Considerations and Pricing Strategies

US fulfillment costs vary from those of the UK due to its size and market complexity. Here’s what you’ll need to monitor:

• Storage fees: These change based on how much stock you’re storing and for how long.
• Pick and pack fees: Fees are sometimes charged for picking and packing orders. 
• Shipping costs: Size, weight, and speed all play a part here.
• Returns processing: Because returns are inevitable. 

It’s highly advantageous to partner with a 3PL that offers transparent pricing. This allows you to forecast your fulfillment costs confidently, helping you make smart decisions about inventory and shipping.

Pricing for Profit

Setting prices for selling in the US follows the same fundamental rules as anywhere else. You’ll need to analyse the true cost of each order, including long-term costs like storage and returns. 

Moreover, when setting prices, remember that US customers often equate price with quality, and simply converting your product prices from pounds to dollars may not suffice. 

Properly research product price tags in your niche(s) to price your products competitively without under or over-charging. 

Shipping Rates

You’ll also need to consider how to set your shipping rates. Here are three tried-and-tested strategies:

• Free shipping thresholds: “Free shipping on orders over $50” can encourage larger purchases.
• Flat-rate shipping: Keep it simple for your customers.
• ‘Free’ shipping for all: Build shipping costs into your product prices

Many eCommerce retailers also offer free shipping during specific promotional periods, such as during holiday sales, Black Friday, or other major events.

Summing Up

Expanding to the US market offers exciting opportunities for UK businesses, but it also presents unique challenges for order fulfillment and shipping. 

Rest assured, by mastering the nuances of US fulfillment operations and implementing an effective strategy from day one, you can set your business up for success in this vast and dynamic market.

You don’t need to go about this alone. At J&J Global Fulfilment, we’re passionate about helping brands like yours unlock their full potential in the US market. 

We combine cutting-edge technology, a worldwide fulfillment network, and exceptional customer service to build strategies that scale with your ambitions.

Ready to take your brand to the next level? Let’s talk. Our team is standing by to answer your questions and explore how we can help you achieve your US market goals.

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