Ogee, a luxury organic skincare and makeup brand, specializes in clean beauty with sustainable, cruelty-free products for both women and men. Their contour collections, night creams, and elixirs have gained a loyal customer base in the United States. Seeking to bring their high-quality personal care solutions to a global audience, Ogee aimed to expand into international markets by selling directly to consumers. However, they faced several challenges, most notably with accurate duty and tax calculations and complex compliance requirements, which hindered their growth. To enhance customer satisfaction and achieve sustainable success abroad, Ogee and their 3PL partner, Outerspace, turned to Passport to ensure efficient and profitable delivery of their premium products worldwide.
International Challenges and Pain Points
Before partnering with Passport, Ogee struggled to expand internationally due to operational constraints, impacting their ability to provide a consistent customer experience globally. The primary hurdles they encountered included:
Duty & Tax Reconciliation Discrepancies
Delays in billing and reconciling duties and taxes led to discrepancies, and accurately matching declared values for customs with order values was difficult. Additionally, integration issues across multiple platforms caused data inconsistencies.
Complex International Compliance Requirements
Navigating compliance requirements as a beauty brand – including chemical and ingredient restrictions and country-specific standards – was resource-intensive and complex. For example, when Ogee launched their first OTC blemish product, they encountered strict regulations due to its drug claims. These kinds of regulatory challenges can lead to customs delays, frustrating buyers.
High Shipping Costs
Cross-border shipping can be very expensive if you don’t have the volume to negotiate discounted rates with international carriers. Ogee found that their shipping costs were often higher than the product price, which deterred potential international customers from completing their purchases.
Limited Resources
As a small team, Ogee struggled to manage the intricacies of international logistics, making it challenging to scale efficiently.
Ogee wanted to grow globally, but they needed an experienced international shipping partner to help them sustainably expand. To do that, their partner needed to simplify cross-border logistics and compliance processes, and reliably support their international operations for a better customer experience.
How Passport Helped
Passport helped Ogee resolve immediate issues with targeted improvements to logistics and compliance processes. Here’s how our international solutions optimized their operations:
Turnkey Technology Integration
Passport’s technology connects seamlessly to ecommerce platforms like Shopify and partners with hundreds of fulfillment providers, making integration and scalability easy. As Ogee’s 3PL, Outerspace works closely with Passport to help direct-to-consumer businesses expand internationally while keeping existing operations running smoothly.
Jackson Scott, Senior 3PL Success Manager at Passport, shares “Outerspace mirrors Passport’s growth journey and value proposition, emphasizing the seamless integration of exceptional customer service with innovative technology to create an outstanding merchant experience. We’re proud to support eight of their brands, and Outerspace’s consultative approach ensures a perfect fit when collaborating with our team.”
Accurate Duty & Taxes
Using Passport’s landed cost calculator, Ogee improved the accuracy of calculating duties, taxes, and shipping costs. This resolved previous discrepancies, simplified billing, and enabled more precise financial management. Passport also optimized their commodity codes to maximize duty and tariff savings and eliminate duties in Free Trade Agreement markets.
Optimized Bundle Handling
Passport introduced a precise system to ensure each bundle component is accurately valued, effectively reducing customs delays and duty costs.
Compliance Management
Passport’s in-house compliance experts guided Ogee through country-specific regulations, helping them identify where their products could be sold and avoid markets with stringent restrictions on cosmetics. We also managed customs clearance and other regulatory challenges, significantly reducing the strain on Ogee’s internal resources.
Brand & Customer Support
With dedicated success managers for brands and responsive support for end-customers, Passport provided proactive recommendations and timely resolutions to any issues. This support allowed Ogee to focus on growth and expand internationally without requiring extensive resources or infrastructure.
“If you’re a Shopify customer, it’s an easy integration with Passport. We don’t have to handle [calculating duties and taxes anymore], and it’s clear-cut what the charges are to our Finance team at the end of the month. They changed the game to help things run smoother.”
Petra Newara
With Passport’s support, Ogee enhanced their customer experience and saw increased sales and profitability in new global markets.
Impacts of Partnering with Passport
Since partnering with Passport, Ogee has seen remarkable improvements in its international sales and operations. Key results include:
- Sales & Revenue Growth – Ogee achieved a 95% increase in GMV from international sales within one year and a 31% quarter-over-quarter revenue increase, highlighting the financial impact of improved international solutions and customer satisfaction.
- Boost in Shipping Volume – In Q1 2024, Ogee saw a 45% increase in shipping volume compared to Q4 2023, reflecting their successful international growth.
- Expanded Global Reach – Ogee significantly boosted their market presence by increasing the number of markets they ship to by 22% year over year, now reaching over 42 countries.
- Optimized Delivery Performance – Transit times were reduced by 24% year over year while maintaining a 99.84% delivery success rate, ensuring timely deliveries to customers worldwide.
“Working closely with Ogee, we’ve tackled their biggest international challenges – from sorting out tricky duty and tax issues to simplifying compliance across different countries – leading to a highly successful partnership. Whether it’s recommending shifts in transit time messaging or assisting with various shipping strategies, it’s been incredibly rewarding to support Ogee as they grow and bring their luxury skincare products to a global audience,” said Jak Khamudkhanov, Enterprise Customer Success Manager at Passport.
At Passport, we collaborate closely with brands, providing a dedicated customer success team that helps test different strategies and offers expert recommendations tailored to key markets. This hands-on approach ensures our partners have the support they need to navigate the complexities of international ecommerce and drive growth on a global scale.
Alex Stark, CMO at Ogee, shared, “Passport allowed us to reach new international markets due to the ease and cost reduction of shipping to customers outside of the US. This allowed us to start running ads internationally, which gave us a big boost in key markets. Our international sales to select strategic countries have increased 7x since implementing Passport.”
Together, Passport and Ogee have built a strong foundation for continued growth and long-term success in the global marketplace.
Ogee and Passport’s Collaborative Success
Partnering with Passport has transformed Ogee’s international operations. By addressing their shipping and compliance challenges, Passport enabled Ogee to confidently expand into new markets.
Accurate commodity and shipment information reduced customs delays, while streamlined processes and responsive customer service alleviated operational burdens. With Passport managing complex international regulations, Ogee could focus on growth. As Ogee continues to expand, they plan to leverage Passport’s expertise to reach even more customers around the world.
For ecommerce brands looking to boost revenue by expanding internationally, Passport provides the tools and expertise to simplify and accelerate entry into global markets. Ready to elevate your brand or enhance your existing international operations?
Set up a discovery call with our team today to see how Passport can fuel your growth.