March 12, 2025 • 16 mins
Featuring Asendia USA guests Leslie Foxhoven, Executive Director for Latin America & the Caribbean, and Michael DiVincenzo, Product Manager, and our co-hosts discuss the opportunities available and challenges for brands and shippers eager to expand their reach into Mexico, the importance of partnering with reliable logistics providers, understanding the evolving e-commerce landscape in Mexico and adopting best practices in shipping, with multiple checkpoints and signature confirmation to enhance delivery security and key tariff considerations for 2025.
Leslie Foxhoven | LinkedIn
Leslie is responsible for designing and establishing Asendia’s best in class e-commerce network solutions to Latin America. She has over 35 years of entrepreneurial experience in the e-commerce industry while living and working in Latin America, establishing companies and networks, including linehaul, final mile delivery, return centers, customs clearance, regional sales, and bottom line results.
Michael DiVincenzo | LinkedIn
Michael is responsible for the development, performance, and expansion of Asendia’s e-commerce solutions into Latin America. He has 9 years of experience in the e-commerce industry with prior experience working as a Pricing Analyst and Commercial Services Analyst for Asendia USA.
Learn more about this topic:
- Asendia USA Launches Multi-Service Direct Entry Solution for e-Commerce Shipping to Mexico
- Asendia USA: E-commerce and mail delivery to and from South America
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
This is Outside the Box withAsendia USA, a podcast educating
US Based brands, marketplacesand e tailors on international shipping
topics and how they can expandtheir global e commerce footprint.
Welcome back everybody toOutside the Box with AendiaUSApodcast.Iam
oneofthe co hosts, NickAgnettiwithmyothercohostJasonRowland andwe
(00:23):
areheretodaytotalkaboutMexico.We'vegotspecialguests,we've got
LesliefoxhovenandMike gotLeslie Foxhoven and Mike DiVincenzo.
Do you Real sure.
I'm Leslie Foxhoven and theexecutive director at Essendia for
Latin America and the Caribbean.
Beautiful, thank you, Mike.
(00:44):
And Mike DiVincenzo. I'm aproduct manager at Asendia. I work
with Asendia's commercial teamand my job pertains to expanding
and improving our solutions toLatin America.
Perfect. Okay, very good. So,so today's podcast we're going to
be talking about, you know,you know, kind of why Mexico. You
know, it's, it's going to rollinto a little bit of information
(01:05):
about Latin America, probablytalk a little bit or at least there's
going to be some mentionsabout South America. But for the
viewers and listeners outthere, you know, it's really about
just another area of the worldto, to capitalize on or to look into
if you're, if you're not thereto look into, into why you should
be there and, or if you'recurrently going there, maybe come
up with some, you know, talkabout some news in terms of potential
(01:26):
regulatory changes, but alsolook at maybe some potential ways
to do things better ordifferent than what you're doing
today. So, and again, our, ourfocus is to really help, you know,
shippers, and especially crossborder shippers really navigate and
make that process a little bitsimpler and easier for those to really
just help continue to expandand grow that business outside from
United States, going outsidethe United States, going outbound.
(01:48):
So again, we did ourintroductions with our guests today
and then I guess one of thequestions, and I don't know Mike
or Leslie who's going to takeit, but you know, why should a brand
or even a shipper, you know,and let's say a fulfillment space,
you know, shipping orfulfilling on behalf of brands look
to Mexico as an area of growthfor their company?
I am going to take that one, Nick.
(02:08):
You got it.
Yeah. So I mean, if we weretalking 10 years ago, maybe expanding
into Mexico and Latin Americamight not be the most attractive
thing, but I could say since2021, cross border e commerce sales
have gone up 85% in Mexico aswell as other major Latin America
(02:29):
countries. Mexico has thesecond largest market share for cross
border E Commerce in LatinAmerica, only behind Brazil. Knowing
that Brazil is a massivelypopulated country, Mexico's percentage
of online buyers over thetotal population has gone up roughly
30% since 2020. The UnitedStates and China provide the two
(02:54):
largest marketplaces forMexican consumers to buy online.
With the new regulations thatwere just rolled out January 1, 2025,
which we'll get into later, itcertainly gives the United States
a competitive advantage forselling into Mexico moving forward.
And then lastly, I would saythe biggest growth of E Commerce
(03:15):
for cross border E Commerceinto Mexico has come from fashion,
electronics and cosmetics withthat. Which definitely aligns with
the profile that a lot of thecustomers that Asendia has.
Okay, so, Mike, first of all,you definitely stole my thunder on
the statistics. I'm a bigstats guy and, and you really, you
(03:36):
really just, you're taking thewins out.
No.
So I apologize. No, you'regood, you're good. It's all, that's
all perfectly, you know, it'sgreat information. You had shared
some information before thecall as well as, you know, there's
information all over for, youknow, so for viewers and again, and
listeners, you can find it, Ithink if you were to just dive into
it. And again, speaking toviewers and listeners, you know,
(03:56):
often people think of, youknow, shipping directly to a consumer
in Mexico, you know, prettychallenging. Like, you know, I think
most people that, you know, ifI'm in front of a customer, most
people, their sentiment is,you know, overall, probably not a
great experience usually.Usually. Right. And so we're looking
to change that. I'm going togo into some statistics briefly because
you covered some of it, whichis good, but I thought it was interesting.
(04:18):
So. And Jason, you probablycould relate to this too, but. So
top B2C E commerce marketcategories in 2024 and 2025 for Mexico.
Number one by far waselectronics, which I thought was
interesting. And you're goingto cover loss prevention and some
other stuff in a little bit.But I thought, you know, there's
got to be significant risk inthat. Right. And again, you're going
to cover that too. Number two,fashion. I expected that. Number
(04:40):
three, food and like householdgoods and stuff. And so I thought,
you know, that's going to beinteresting to dive into a little
bit. Probably not so much inthis episod. Great category to look
into. And then, you know, Ihave a couple of clients myself.
That are in more of thiscategory. So toys, hobby and diy.
And as of course a DIY guythat messes up many projects and
(05:01):
makes many runs to the store,I think that's also a very interesting
concept as well. And thenbeauty, health and personal care.
And I, I really did expected,I expected that to actually be a
little bit higher on the list,especially over number one was alarming
to me with the electronics andthen the other one. So in 2024, because
we obviously don't have 2025statistics yet, was that Mexico held
approximately 26% of the LatinAmerican e commerce share. That's
(05:25):
huge. I mean that's over aquarter of the overall the pie, if
you will. So I think forpeople just thinking Mexico, I've
had troubles in the past orissues or I don't know if I want
to get into that or investmoney or time and the commitment
of time into that as well. Imean a huge number, $63 billion estimated
(05:45):
in 2025. It could very well beworth the investment, time and resources
to expand and dive furtherinto Mexico.
Are you an E commerce businesswith questions about the new tariffs
for Canada and Mexicointroduced on March 4, Asendia USA
offers solutions to ensureyour shipping remains seamless. Get
(06:06):
in touch with one of our ecommerce experts today at ecommerce.USA@asendia.com.
Jason, I think you were goingto talk a little bit about, you know,
some issues as such.
Yeah. So obviously there is amarket there. Right. So that's, that's
just kind of the data you'reshowing kind of underlies what the
value of a Mexican market is.And I think Leslie, for, for us and
(06:27):
for what you guys are puttingtogether, obviously when people are
getting into a new market, itcomes with new concerns and new challenges
and that kind of thing. Sowhat, what are some of the, like
the biggest challenges thatthink are out there when it comes
to the Mexican market? Whatare we facing?
Yeah, well, there's a, there'sa handful but when you partner with
(06:49):
the right teams, you can, youcan easily avoid those and have an
really incredible experience.I mean there's, there's a load of
them and I wouldn't, Iwouldn't undervalue the importance
of, you know, making sureyou're partnering with the right
people from A to Z that youhave, that these, these partners
(07:09):
have honesty and integrity andthey're really partners you can trust.
And that's anywhere from yourfinal mile partners to in between.
Also to the, probably thebiggest challenge for a lot of People
is customs itself. So you wantto make certain that you have done
your due diligence, that youknow the rules and regulations and
(07:32):
that you're partnered with abroker and a company that is in good
standing with the Mexicangovernment and with customs and with
Hacienda, the tax authoritiesand that they are, you know, don't
have any suspensions on theirlicenses or anything like that and
that they're willing to giveyou the data in accordance with the
law that will help you do yourproper, you know, input. And certainly
(07:55):
at Asendia, you know, we'vegot a lot of collaterals and things
and certainly some, you know,people on our team that, that would
really help educate theshippers to get around that. So yeah,
if it's, if it's done, if it'sdone properly, then that part should
be, you know, easy to avoid.Some of the other issues could be
(08:16):
there's been some newregulations. I think we might get
into that later. But wecertainly want to, you know, make
certain that we're aware ofthe new regulations that came out
in Mexico and for January 1,2025, be aware of those, those repercussions
for your companies. And thenwe really don't have, you know, issues
with the, with Chineseproducts, but certainly Chinese products
(08:39):
went through a major, youknow, audit over this course of this
fourth quarter and they werereally going after the Chinese companies
and the brokers that wereundervaluing their goods. And so
what they've done is they'venow put full tariffs on those. They
no longer have a de minimis.But fortunately, because of our agreement
with Mexico and Canada, ifyour commodities, if your shipments
(09:03):
originate not as a certificateof origin, but if they actually ship
from the US then we avoid allof those duty and taxes and we get
to benefit from, from, forthe, for the de minimis. So that's,
that's a good one. And, andthose are just some of, some of the
high levels, some of the highlevel issues.
Yeah.
So it sounds like as, as newcompanies come online, the service
(09:26):
that you guys have createdhere does a lot of that stuff for
them. Right. So a lot of thegroundworks already completed for
them. Those relationships withindividual companies and regulators
and in country are kind oftaking care for them. So it sounds
like, sounds like you guys arereally helping people be set up for
success there. As far as fromthe regulatory side, which is, I
always kind of put a spin onit with, with that kind of stuff
(09:47):
because that's my world. But Ialways had like Mexico, the big four
Letter word in Mexico was lossprevention. Right. And it was always
the thing that people alwayshad the biggest problem with. They
were scared of gettinginvolved in that market. They were
scared of the regulators. Theywere scared of kind of the realities.
And loss prevention can getpretty, you know, it really just
(10:10):
hits your bottom line. So itmakes a lot of businesses weary of
getting involved in a marketlike Mexico. So when it comes to
loss prevention, are therethings that you guys have done or
the way that you have your.Your product set up that kind of
mitigate some of those risksor. So how do you guys handle loss
prevention?
Yeah. So loss present, lossprevention. I apologize. It was definitely
(10:32):
one of the key points that wehad in mind when setting up the solution
and some of the steps that wetook to try and keeping that number
of lost parcels very, verylow. We utilize the largest and most
trusted final mile providerswithin Mexico. Once that parcel gets
in country, they get four tofive different checkpoints before
(10:55):
arriving to the recipient'shome. That way, when the recipient
and ascendee is tracking theparcel, we could see where it is
at all times. All parcels aredelivered with a signature confirmation.
So no parcels are merely justleft on a recipient's doorstep. Someone
has to be home, signed for theparcel, and we get that pod for each
parcel with the signature. Ifthe recipient isn't home, the final
(11:19):
mile provider will reach outto the recipient and contact them,
schedule a good time thatworks on their day to day schedule
to get that parcel delivered.And then let's say in the end, the
parcel is deemed undeliverableor needs to be returned. We'll have
all those parcels consolidatedwithin Mexico and then returned to
the United States itself.
(11:41):
Great.
Yeah, that. Jason, let mejust. So. So I think the, the multiple
checkpoints, the signatureconfirmation, I mean, just from coming
from the sales perspectiveprior to this service. Right. It's
kind of. I mean, I hate to beso nonchalant about it, but it's
like, you know, some peoplejust talk to you about, you know,
oh, I shipped these goods intoMexico and they just went missing.
And it was like, well, whatis. What. How can I. How can I recoup
(12:04):
my loss? And stuff like that.And there wasn't really a good next
step. Right. It was just kindof like, okay, things just went missing.
And. And so if you're, youknow, again, if you're a viewer or
if you're a listener watching,and let's say you're, you know, and
again, we're our network,which we'll get into Probably a little
closer towards the end of ourtalk today and just did, you know.
Well, it's all throughoutreally, but it's really focused on
(12:24):
that, that DDP that you know,duties prepaid delivery experience
as a, a full solution. Right.But you know, there's obviously still
going to be DDU and ddp. Butultimately we look at it, I think
most people, and Leslie, youcan probably, and Mike, and you could
probably say that most peoplehave probably had at some point in
their tenure a poor experienceshipping to Mexico. And so that's
(12:48):
where I think these, thesemultiple checkpoints, the signature
confirmation. That's awesomestuff. That's really good stuff.
So no, Jason, I appreciate youbringing that up and Mike, thank
you for that info. Yeah.
So Leslie, you touched on newregulatory changes a little bit there.
Can you expand on that alittle bit and tell everybody about
some of the new regulationsthat we're facing?
(13:08):
Yeah, it's exciting stuff.It's a good time to take a nap. So.
Okay.
Don't say no.
She's kidding. She's kidding.
I'm just kidding. No. We hadsome pretty, pretty significant changes
come through that you know,the governments have been negotiating
over the course of this pastyear even longer. A lot of it's modeled
on some of the things they doin Brazil. But one of the, some of
(13:29):
the things that becamemandatory in January were that we
needed for the first time atax ID for the consignee. So anyone
who is receiving a shipmentbusiness to consumer needs to supply
their tax ID or it's called anRFC or if you're 18 or under, there's
what they call a curb. Sothat's your id so the government
(13:53):
knows what you're importing.Their way to control that. We also
need to, in the informationwe're providing to customs need to
make sure we have a verydetailed description of the goods
which they typically weren'tso picky about in the past. We need
a phone number and an emailaddress for them to contact that
there were de minimises waivedfor other countries. Fortunately,
(14:17):
as I mentioned before, wedidn't have that. So we still get
to enjoy that $50 de minim.And one of the changes is we can
import things, not to get tooconvoluted, but we can import things
on a simple courier typemethod using a T1 up to $1,000. We
used to be able to do that toup to 2,500 depending on the issue.
(14:38):
But so there are a whole lotof details in those regulations.
That's great. When it comes tocustomers giving that data in, though,
when it comes to phone number,you know, email address, tax id,
what happens to the stuff ifit has to sit for a little while
while they're getting that tous, does it have to be in the original
(14:58):
data? Do they have a littlebit of time if they're scrambling
for it? How does that work?
Yeah, fortunately, you know,when we have good communication with
our customers, that's not thatwe haven't experienced too much of
that. We're certain, you know,that we explain to them what's, you
know, what information they'regetting up front. Most of our, you
(15:18):
know, customers are shippingto other, other countries around
the world that have, you know,some similar requirements. So they
were prepared for it. So wehad, we have a few instances and
we certainly do what we can towork with our, our customer to get
the information to help themwhere we need to. So it's, it's been,
it's, it's been smooth that Imight, I, I could say that, yeah.
(15:41):
Yeah. It sounds like ifsomebody gets, you know, up with
that product and doesn't haveexperience right with it or is the
first time they'reexperiencing it, like we're prepared
to help them out with it.Which, which is, which is great.
So as those regulatorychanges, you know, continue to, to
come in and, you know, I thinkone of the things we're going to
talk about here in a littlebit is the tariffs, right as they.
(16:02):
That big scary word thateveryone's dealing with today. And
Nick, I know you're excitedabout it. Yeah, I think the, this
just such a dynamic market interms of regulation and that kind
of thing that, you know, it'sreally important for companies to
know what the rules are and,and then know how those rules are
going to affect theiroperations. So I think, I think we're
all in for it with thesetariffs for a lot of these conversations.
(16:23):
Thanks everybody for joiningus for part one from episode 15 from
outside the box of the SanDiego USA podcast. Stay tuned for
part two where we talk aboutall things Mexico.
Share, subscribe and downloadour podcast. To learn more about
today's topic or for a freeconsultation, email us@ecommerce
USAendia.com Come back formore insightful discussions on ecommerce
(16:47):
shipping to Canada, Mexico and worldwide.
This is Outside the Box withAsendia USA, a podcast educating
US Based brands, marketplacesand e tailors on international shipping
topics and how they can expandtheir global e commerce footprint.
Welcome back everybody toOutside the Box with AendiaUSApodcast.Iam
oneofthe co hosts, NickAgnettiwithmyothercohostJasonRowland andwe
(00:23):
areheretodaytotalkaboutMexico.We'vegotspecialguests,we've got
LesliefoxhovenandMike gotLeslie Foxhoven and Mike DiVincenzo.
Do you Real sure.
I'm Leslie Foxhoven and theexecutive director at Essendia for
Latin America and the Caribbean.
Beautiful, thank you, Mike.
(00:44):
And Mike DiVincenzo. I'm aproduct manager at Asendia. I work
with Asendia's commercial teamand my job pertains to expanding
and improving our solutions toLatin America.
Perfect. Okay, very good. So,so today's podcast we're going to
be talking about, you know,you know, kind of why Mexico. You
know, it's, it's going to rollinto a little bit of information
(01:05):
about Latin America, probablytalk a little bit or at least there's
going to be some mentionsabout South America. But for the
viewers and listeners outthere, you know, it's really about
just another area of the worldto, to capitalize on or to look into
if you're, if you're not thereto look into, into why you should
be there and, or if you'recurrently going there, maybe come
up with some, you know, talkabout some news in terms of potential
(01:26):
regulatory changes, but alsolook at maybe some potential ways
to do things better ordifferent than what you're doing
today. So, and again, our, ourfocus is to really help, you know,
shippers, and especially crossborder shippers really navigate and
make that process a little bitsimpler and easier for those to really
just help continue to expandand grow that business outside from
United States, going outsidethe United States, going outbound.
(01:48):
So again, we did ourintroductions with our guests today
and then I guess one of thequestions, and I don't know Mike
or Leslie who's going to takeit, but you know, why should a brand
or even a shipper, you know,and let's say a fulfillment space,
you know, shipping orfulfilling on behalf of brands look
to Mexico as an area of growthfor their company?
I am going to take that one, Nick.
(02:08):
You got it.
Yeah. So I mean, if we weretalking 10 years ago, maybe expanding
into Mexico and Latin Americamight not be the most attractive
thing, but I could say since2021, cross border e commerce sales
have gone up 85% in Mexico aswell as other major Latin America
(02:29):
countries. Mexico has thesecond largest market share for cross
border E Commerce in LatinAmerica, only behind Brazil. Knowing
that Brazil is a massivelypopulated country, Mexico's percentage
of online buyers over thetotal population has gone up roughly
30% since 2020. The UnitedStates and China provide the two
(02:54):
largest marketplaces forMexican consumers to buy online.
With the new regulations thatwere just rolled out January 1, 2025,
which we'll get into later, itcertainly gives the United States
a competitive advantage forselling into Mexico moving forward.
And then lastly, I would saythe biggest growth of E Commerce
(03:15):
for cross border E Commerceinto Mexico has come from fashion,
electronics and cosmetics withthat. Which definitely aligns with
the profile that a lot of thecustomers that Asendia has.
Okay, so, Mike, first of all,you definitely stole my thunder on
the statistics. I'm a bigstats guy and, and you really, you
(03:36):
really just, you're taking thewins out.
No.
So I apologize. No, you'regood, you're good. It's all, that's
all perfectly, you know, it'sgreat information. You had shared
some information before thecall as well as, you know, there's
information all over for, youknow, so for viewers and again, and
listeners, you can find it, Ithink if you were to just dive into
it. And again, speaking toviewers and listeners, you know,
(03:56):
often people think of, youknow, shipping directly to a consumer
in Mexico, you know, prettychallenging. Like, you know, I think
most people that, you know, ifI'm in front of a customer, most
people, their sentiment is,you know, overall, probably not a
great experience usually.Usually. Right. And so we're looking
to change that. I'm going togo into some statistics briefly because
you covered some of it, whichis good, but I thought it was interesting.
(04:18):
So. And Jason, you probablycould relate to this too, but. So
top B2C E commerce marketcategories in 2024 and 2025 for Mexico.
Number one by far waselectronics, which I thought was
interesting. And you're goingto cover loss prevention and some
other stuff in a little bit.But I thought, you know, there's
got to be significant risk inthat. Right. And again, you're going
to cover that too. Number two,fashion. I expected that. Number
(04:40):
three, food and like householdgoods and stuff. And so I thought,
you know, that's going to beinteresting to dive into a little
bit. Probably not so much inthis episod. Great category to look
into. And then, you know, Ihave a couple of clients myself.
That are in more of thiscategory. So toys, hobby and diy.
And as of course a DIY guythat messes up many projects and
(05:01):
makes many runs to the store,I think that's also a very interesting
concept as well. And thenbeauty, health and personal care.
And I, I really did expected,I expected that to actually be a
little bit higher on the list,especially over number one was alarming
to me with the electronics andthen the other one. So in 2024, because
we obviously don't have 2025statistics yet, was that Mexico held
approximately 26% of the LatinAmerican e commerce share. That's
(05:25):
huge. I mean that's over aquarter of the overall the pie, if
you will. So I think forpeople just thinking Mexico, I've
had troubles in the past orissues or I don't know if I want
to get into that or investmoney or time and the commitment
of time into that as well. Imean a huge number, $63 billion estimated
(05:45):
in 2025. It could very well beworth the investment, time and resources
to expand and dive furtherinto Mexico.
Are you an E commerce businesswith questions about the new tariffs
for Canada and Mexicointroduced on March 4, Asendia USA
offers solutions to ensureyour shipping remains seamless. Get
(06:06):
in touch with one of our ecommerce experts today at ecommerce.USA@asendia.com.
Jason, I think you were goingto talk a little bit about, you know,
some issues as such.
Yeah. So obviously there is amarket there. Right. So that's, that's
just kind of the data you'reshowing kind of underlies what the
value of a Mexican market is.And I think Leslie, for, for us and
(06:27):
for what you guys are puttingtogether, obviously when people are
getting into a new market, itcomes with new concerns and new challenges
and that kind of thing. Sowhat, what are some of the, like
the biggest challenges thatthink are out there when it comes
to the Mexican market? Whatare we facing?
Yeah, well, there's a, there'sa handful but when you partner with
(06:49):
the right teams, you can, youcan easily avoid those and have an
really incredible experience.I mean there's, there's a load of
them and I wouldn't, Iwouldn't undervalue the importance
of, you know, making sureyou're partnering with the right
people from A to Z that youhave, that these, these partners
(07:09):
have honesty and integrity andthey're really partners you can trust.
And that's anywhere from yourfinal mile partners to in between.
Also to the, probably thebiggest challenge for a lot of People
is customs itself. So you wantto make certain that you have done
your due diligence, that youknow the rules and regulations and
(07:32):
that you're partnered with abroker and a company that is in good
standing with the Mexicangovernment and with customs and with
Hacienda, the tax authoritiesand that they are, you know, don't
have any suspensions on theirlicenses or anything like that and
that they're willing to giveyou the data in accordance with the
law that will help you do yourproper, you know, input. And certainly
(07:55):
at Asendia, you know, we'vegot a lot of collaterals and things
and certainly some, you know,people on our team that, that would
really help educate theshippers to get around that. So yeah,
if it's, if it's done, if it'sdone properly, then that part should
be, you know, easy to avoid.Some of the other issues could be
(08:16):
there's been some newregulations. I think we might get
into that later. But wecertainly want to, you know, make
certain that we're aware ofthe new regulations that came out
in Mexico and for January 1,2025, be aware of those, those repercussions
for your companies. And thenwe really don't have, you know, issues
with the, with Chineseproducts, but certainly Chinese products
(08:39):
went through a major, youknow, audit over this course of this
fourth quarter and they werereally going after the Chinese companies
and the brokers that wereundervaluing their goods. And so
what they've done is they'venow put full tariffs on those. They
no longer have a de minimis.But fortunately, because of our agreement
with Mexico and Canada, ifyour commodities, if your shipments
(09:03):
originate not as a certificateof origin, but if they actually ship
from the US then we avoid allof those duty and taxes and we get
to benefit from, from, forthe, for the de minimis. So that's,
that's a good one. And, andthose are just some of, some of the
high levels, some of the highlevel issues.
Yeah.
So it sounds like as, as newcompanies come online, the service
(09:26):
that you guys have createdhere does a lot of that stuff for
them. Right. So a lot of thegroundworks already completed for
them. Those relationships withindividual companies and regulators
and in country are kind oftaking care for them. So it sounds
like, sounds like you guys arereally helping people be set up for
success there. As far as fromthe regulatory side, which is, I
always kind of put a spin onit with, with that kind of stuff
(09:47):
because that's my world. But Ialways had like Mexico, the big four
Letter word in Mexico was lossprevention. Right. And it was always
the thing that people alwayshad the biggest problem with. They
were scared of gettinginvolved in that market. They were
scared of the regulators. Theywere scared of kind of the realities.
And loss prevention can getpretty, you know, it really just
(10:10):
hits your bottom line. So itmakes a lot of businesses weary of
getting involved in a marketlike Mexico. So when it comes to
loss prevention, are therethings that you guys have done or
the way that you have your.Your product set up that kind of
mitigate some of those risksor. So how do you guys handle loss
prevention?
Yeah. So loss present, lossprevention. I apologize. It was definitely
(10:32):
one of the key points that wehad in mind when setting up the solution
and some of the steps that wetook to try and keeping that number
of lost parcels very, verylow. We utilize the largest and most
trusted final mile providerswithin Mexico. Once that parcel gets
in country, they get four tofive different checkpoints before
(10:55):
arriving to the recipient'shome. That way, when the recipient
and ascendee is tracking theparcel, we could see where it is
at all times. All parcels aredelivered with a signature confirmation.
So no parcels are merely justleft on a recipient's doorstep. Someone
has to be home, signed for theparcel, and we get that pod for each
parcel with the signature. Ifthe recipient isn't home, the final
(11:19):
mile provider will reach outto the recipient and contact them,
schedule a good time thatworks on their day to day schedule
to get that parcel delivered.And then let's say in the end, the
parcel is deemed undeliverableor needs to be returned. We'll have
all those parcels consolidatedwithin Mexico and then returned to
the United States itself.
(11:41):
Great.
Yeah, that. Jason, let mejust. So. So I think the, the multiple
checkpoints, the signatureconfirmation, I mean, just from coming
from the sales perspectiveprior to this service. Right. It's
kind of. I mean, I hate to beso nonchalant about it, but it's
like, you know, some peoplejust talk to you about, you know,
oh, I shipped these goods intoMexico and they just went missing.
And it was like, well, whatis. What. How can I. How can I recoup
(12:04):
my loss? And stuff like that.And there wasn't really a good next
step. Right. It was just kindof like, okay, things just went missing.
And. And so if you're, youknow, again, if you're a viewer or
if you're a listener watching,and let's say you're, you know, and
again, we're our network,which we'll get into Probably a little
closer towards the end of ourtalk today and just did, you know.
Well, it's all throughoutreally, but it's really focused on
(12:24):
that, that DDP that you know,duties prepaid delivery experience
as a, a full solution. Right.But you know, there's obviously still
going to be DDU and ddp. Butultimately we look at it, I think
most people, and Leslie, youcan probably, and Mike, and you could
probably say that most peoplehave probably had at some point in
their tenure a poor experienceshipping to Mexico. And so that's
(12:48):
where I think these, thesemultiple checkpoints, the signature
confirmation. That's awesomestuff. That's really good stuff.
So no, Jason, I appreciate youbringing that up and Mike, thank
you for that info. Yeah.
So Leslie, you touched on newregulatory changes a little bit there.
Can you expand on that alittle bit and tell everybody about
some of the new regulationsthat we're facing?
(13:08):
Yeah, it's exciting stuff.It's a good time to take a nap. So.
Okay.
Don't say no.
She's kidding. She's kidding.
I'm just kidding. No. We hadsome pretty, pretty significant changes
come through that you know,the governments have been negotiating
over the course of this pastyear even longer. A lot of it's modeled
on some of the things they doin Brazil. But one of the, some of
(13:29):
the things that becamemandatory in January were that we
needed for the first time atax ID for the consignee. So anyone
who is receiving a shipmentbusiness to consumer needs to supply
their tax ID or it's called anRFC or if you're 18 or under, there's
what they call a curb. Sothat's your id so the government
(13:53):
knows what you're importing.Their way to control that. We also
need to, in the informationwe're providing to customs need to
make sure we have a verydetailed description of the goods
which they typically weren'tso picky about in the past. We need
a phone number and an emailaddress for them to contact that
there were de minimises waivedfor other countries. Fortunately,
(14:17):
as I mentioned before, wedidn't have that. So we still get
to enjoy that $50 de minim.And one of the changes is we can
import things, not to get tooconvoluted, but we can import things
on a simple courier typemethod using a T1 up to $1,000. We
used to be able to do that toup to 2,500 depending on the issue.
(14:38):
But so there are a whole lotof details in those regulations.
That's great. When it comes tocustomers giving that data in, though,
when it comes to phone number,you know, email address, tax id,
what happens to the stuff ifit has to sit for a little while
while they're getting that tous, does it have to be in the original
(14:58):
data? Do they have a littlebit of time if they're scrambling
for it? How does that work?
Yeah, fortunately, you know,when we have good communication with
our customers, that's not thatwe haven't experienced too much of
that. We're certain, you know,that we explain to them what's, you
know, what information they'regetting up front. Most of our, you
(15:18):
know, customers are shippingto other, other countries around
the world that have, you know,some similar requirements. So they
were prepared for it. So wehad, we have a few instances and
we certainly do what we can towork with our, our customer to get
the information to help themwhere we need to. So it's, it's been,
it's, it's been smooth that Imight, I, I could say that, yeah.
(15:41):
Yeah. It sounds like ifsomebody gets, you know, up with
that product and doesn't haveexperience right with it or is the
first time they'reexperiencing it, like we're prepared
to help them out with it.Which, which is, which is great.
So as those regulatorychanges, you know, continue to, to
come in and, you know, I thinkone of the things we're going to
talk about here in a littlebit is the tariffs, right as they.
(16:02):
That big scary word thateveryone's dealing with today. And
Nick, I know you're excitedabout it. Yeah, I think the, this
just such a dynamic market interms of regulation and that kind
of thing that, you know, it'sreally important for companies to
know what the rules are and,and then know how those rules are
going to affect theiroperations. So I think, I think we're
all in for it with thesetariffs for a lot of these conversations.
(16:23):
Thanks everybody for joiningus for part one from episode 15 from
outside the box of the SanDiego USA podcast. Stay tuned for
part two where we talk aboutall things Mexico.
Share, subscribe and downloadour podcast. To learn more about
today's topic or for a freeconsultation, email us@ecommerce
USAendia.com Come back formore insightful discussions on ecommerce
(16:47):
shipping to Canada, Mexico and worldwide.
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