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In this article, we detail how FQ and Portless make scaling internationally profitable, low-lift, and stress-free.
For American DTC brands, international expansion is an unrivaled opportunity to scale. Yet, barriers like different tax codes, third-party logistics, and COVID supply-chain delays disincentivize many brands from taking the plunge.
That’s why we sat down with Izzy Rosenzweig, Founder and CEO of Portless. Portless helps brands supercharge profit margins and cash flow by streamlining cross-border logistics.
Combined with Factored Quality, these two companies have changed the game and minimized the lift required to sell products overseas.
Below, we detail how FQ and Portless make scaling internationally profitable, low-lift, and stress-free.
Historically, U.S.-based brands have shied away from overseas expansions for a mix of reasons. Now, FQ and Portless all but eliminate those roadblocks (more on this to come below) — and brands can offer their products across borders to enjoy four key benefits.
If you’re a U.S.-based apparel company, there’s an urgency to sell each season of product in a specific window. However, if you expand to Asia or Australia, you can sell that apparel for far longer. This makes every marketing effort more worthwhile and extends the life of each product.
For an extended period of the COVID pandemic, interest rates were relatively low for brands, meaning it was easy to finance inventory. Today, that’s completely changed: Interest rates are at a new high, and securing a loan can be tricky without proof of profitability.
To set your brand up for financial success, consider expanding internationally. New sales streams can generate an infusion of cash to boost profit margins.
Typically, brands must meet minimum order requirements and wait for container availability to sell and ship internationally. In response, FQ and Portless enable brands to test products in new markets much faster.
Brands selling smaller, seasonal products should seize this opportunity to conduct product testing with minimal lift — enabling a constant cycle of design test iterations.
Many manufacturers are increasing their baseline quality, environmental standards, and location offerings. Because of this, many are willing to accept smaller orders and offer shorter wait times — an ideal combination for newer brands looking to scale and diversify their SKUs.
A classic problem DTC companies confront is waiting ages for an overseas product shipment — only to ultimately receive defective goods.
There are two separate problems here, and FQ and Portless have partnered up to solve both:
Combining these two solutions unlocks a world of potential for your company.
On top of untapped profit and revenue opportunities in new markets, the time and cash saved allows your brand to double down on hiring, business growth, and marketing.
Andrew Hoagland, Head of Revenue at Factored Quality, always repeats this mantra to our users: Control the things that you can control. When your brand leverages FQ and Portless, you do exactly that.
Expanding internationally is a lucrative business move for all sorts of American brands, including:
That’s why Factored Quality and Portless have partnered up: to make overseas brand expansion as streamlined as possible.
Below, we outline three common blockers to cross-border expansion — and how our solutions help brands clear them with ease.
Smaller brands rarely have the legal expertise to navigate the tax laws of various countries, while hiring a consultant can be cost-prohibitive. If your brand fails to comply with international tax regulations, that could trigger huge fines.
FQ can help brands understand and take action on the regulations, tests, and certifications necessary to expand to any country. You’re never alone in navigating foreign waters when you work with us. Together, we’ll get you up to compliance — without breaking the bank.
In addition, Izzy recommends that brands leverage two Shopify apps: Aloe Vera and Zonos. These tools simplify tax problems like charging VAT to the right customers.
As brands expand internationally, many contemplate establishing containers in each new country. Those containers require more decentralized 3PLs, meaning brands must learn how to work with each one and trust they’ll do the job right. It’s difficult to guarantee that any container gets refilled on time, let alone toggle between multiple disparate 3PLs.
With Portless, all of your inventory is stored in one place. Restocking it for all markets is as simple as clicking a button — saving you time, money, and effort and ensuring peace of mind throughout the full supply chain.
Countless brands manufacture their goods overseas and ship them to the U.S… only to mail them internationally again. This expensive order of operations may even outweigh the benefits of simply expanding your customer pool.
Plus, speed to market is a major consideration. Beyond setting up the necessary warehouses, generating cash flow with a two-part shipping system is a drawn-out process.
When you skip the ship and mail local with Portless, shipping costs decrease significantly — roughly $6 for 1/2 lb. in the UK and $7 for the same amount in Australia. That’s because you’re no longer lugging product across the ocean, just to ship it halfway back. As a result:
Historically, selling and shipping products overseas was daunting, risky, and expensive for DTC brands. Today, Factored Quality and Portless have changed the game.
Looking to streamline your QC and scale without the stress? Book a personalized demo today.