Cross-Border Chronicle | December 23th, 2024 Newsletter

After weeks of disruption, the Canada Post strike has officially ended. However, it’s far from business as usual. With a substantial backlog of shipments to process, retailers and brands can expect delays and extended lead times for the foreseeable future.

What to expect:

• Slow Recovery: Operations will take weeks to normalize, as Canada Post works through its backlog.

• BFCM Fallout: Many retailers are already grappling with delays from the strike, which may affect customer satisfaction and holiday returns.

• Ongoing Uncertainty: The impact on supply chains may ripple into the new year, making robust logistics planning essential.

Why this matters:

While the strike may be over, brands need to prepare for continued disruption, especially those shipping cross-border. Building a contingency plan and leveraging alternative solutions can help minimize delays and maintain customer satisfaction during this critical time.

Reminder: For FlavorCloud customers, this Canada Post strike has been a non-issue.  We pivoted to other last mile carriers in Canada to ensure all volume was delivered on time.

Read more about the strike aftermath here.

Tariffs and Trade Policy Risks: What’s Happening?

Global tariff policies continue to be a hot topic. The Trump administration has proposed a 25% tax on goods imported from Canada and Mexico, with similar measures already in place for China. These policies aim to generate revenue but come with significant risks for retailers and brands.

What does this mean for you?

• Elevated Compliance Risk: Retailers will need to navigate more and tighter customs regulations and ensure all goods meet compliance requirements to avoid penalties or delays.

• Increased Cost Risk: Between increased compliance costs and the actual increased tariff costs, imports into the US will cost more for importers.

• Volatile Supply Chains: Tariff uncertainty is creating unpredictability, especially for cross-border trade. Frequently, when one country increases tariffs, their trade partners retaliate in some fashion and do the same.  Retailers must prepare for dynamic, multi-country and multi-dimensional tariff risk.

Global borders have been fairly porous for many years and 2025 looks to be a year when new regulations brings more calcification than we have seen in decades.

Why this matters:

Brands relying on international suppliers, particularly from North America and China, face growing operational risks. Compliance is key, but managing this level of complexity requires specialized solutions. Without the right support, your margins, inventory flow, and supply chain resilience are at risk.

At Manifest on February 10, we’ll dive into how retailers can manage tariff volatility, ensure compliance, and stay agile in a shifting trade landscape. Join us to learn how FlavorCloud is empowering brands to overcome these challenges.

What We’re Doing About These Updates: 

FlavorCloud’s cross-border logistics solutions are built to handle the unexpected.

• We ensure automated compliance for all Global Trade regulatory changes for B2B and DTC shipments dynamically, so they comply with new policies across the FlavorCloud network.

• Our network is optimized for resiliency and redundancy – this means we dynamically pick the best carrier options based on country and performance all the way through customs clearance with 300+ carriers optimizations at our disposal.  Carrier strikes or disruptions don’t impact our network as it is designed for resiliency.

Shopify Merchants Hit Record Sales This Black Friday/Cyber Monday

Shopify merchants drove an incredible $11.5 billion in global sales during Black Friday-Cyber Monday 2024, up 24% from last year.

Some additional wins:

• 76+ million customers shopped from Shopify brands

• Over 67,000 merchants had their best sales day ever

• Top product categories: Clothing Tops, Cosmetics, Fitness & Nutrition

• Average cart price: $108.56
• Cross-border orders represented 16 percent of all orders

Learn more about Shopify’s BFCM impact and insights here.

Featured Resource: The Backend Office Playbook

Behind every smooth ecommerce experience is a powerhouse backend system.

That’s why we teamed up with industry-leading partners like Loop Returns, Simple Bundles, and ShipBob to create a comprehensive guide for brands looking to turn operational challenges into opportunities.

This isn’t just a how-to manual—it’s a playbook designed to help you tackle the messiness of logistics, inventory, and returns, so you can grow your brand with confidence.

What’s inside?

🌍 Streamline cross-border logistics and cut through red tape

🔄 Master the art of returns management

📦 Scale your order fulfillment with ease

Ready to transform your backend processes?

→ Download the Backend Office Playbook here

Here’s to starting 2025 with a stronger, smarter backend system!