Inbound Canada

Canada Market overview

• Canada has a population of 35.16 million inhabitants

• 14.3 million buy online

• They have spent $21.5 billion in 2013 and are expected to reach $30 billion by 2015

• The annual average online spend is $ 1503

• The average order value is $117

• 50% of online shoppers proceed to check out to see shipping costs

• High Shipping Costs represent the #1 reason for shopping cart abandonment

The top 3 categories

“Significant Sales Peaks occur on Black Friday, Cyber Monday and Boxing

Day”

“54% shops cross-border and this is predicted to grow to 76%”

12

3

Clothing &Accessories

Entertainment Items

Toys

The top 3 countries they buy from

12

3

US

China

UK

SEAMLESS CUSTOMER EXPERIENCE• Canada is the market where we got

started and the ‘backbone’ of our business

• We want Canada to function as a “51st State”, with that level of ease and accuracy

• We build and manage duty and tax pre-paid solutions for seamless and hassle-free delivery. This lowers the rate of returns while decreasing costs and fees due to the recipient

Why we should be your partner in logistics for the Canadian market

“DIRECT INJECTION” TO CANADA• We create a frequent (up to daily)

consolidation, shipments bypass individual handling in US networks

• We eliminates points of contact and improves overall service to Canadian recipients

• All packages will have Canadian a domestic label, and include a Canadian returns address

• We give your company a virtual” Canadian presence

RETURNS MANAGEMENT• We manage returns within the destination

country to speed up the delivery cycle• We improve credits, re-ships, and other

customer services function• We make sure to get all duty and taxes

back that were paid on northbound customs clearance for returned and undeliverable parcels

DELIVERY PARTNERSHIP• We are compliant with all carrier services

(e.g. DOT, PIP,FAST, IAC,...)• We run our own trailers with our own drivers

in some lanes for total control from pick up to injection

• We are carrier neutral and fully committed to the best delivery provider and service based on the customer needs

Highlights of our delivery service to CA

• Delivery via a network of trusted local partners

• Different injection points into Canada (East/West)

• Eliminate tax burden by injecting into provinces with a lower tax rate

• Clearance into CA via our customs broker Landmark Trade Services CA (LTS CA)*

• Full tracking from origin including pickup, customs clearance and end-delivery

• Delivery service at home with proof of delivery (scan)

• Covering CA in between 4- 13 days from US, EU, Asia, AU for main cities

• Final mile delivery in CA from 1-5 days

• Insurance coverage - max $100 CAD/ per parcel

• Maximum weight : 66 lbs (30kg) and parcel size : length is maximum 78,7 inch (200cm) and length +2 width +2 height < 118 inch (300cm)

* No duty free & no sales tax charged ≤ <20 CAD. The maximum import value: $10,000 CAD (Need Account Exec Approval for Order which exceed this value), If requested a DDU solution is also available

Operational flow to deliver into CA

Step Description Transit

1 Buyer places order online Day 0

2We pick up parcels in your facility or you drop at our facility. We consolidate and

prepare for delivery to CADay 1

3We airlift parcels (or for US trucks) into

Toronto, Calgary or both and perform customs clearance through LTS CA*

US: 1-2 daysEU: 2 days

Asia: 2-4 daysAU: 2-3 days

4Parcels are injected into our CA partner

networks for delivery within CA*1-5 days

* Delivery to major metro locations

Transit times for shipping to CAvia Toronto & Calgary (Dual)

**Sask.: SaskatchewanPEI: Prince_Edward_Island

Final Mile CA Delivery(main cities)

1-2 days3-4 days5 days

Transport to CA*From US: 1-2 daysFrom EU: 2 daysFrom Asia: 2-4 daysFrom AU: 2-3 days

E2E transit times to CAFrom US: 3-8 daysFrom EU: 4-8 daysFrom Asia: 4-10 daysFrom AU: 4-9 days

*start from LG facility – 1 extra day for handling

TorontoCalgary

Yukon

Northwest Territories

Ontario Quebec

British Columbi

a

Alberta

Manitoba

Sask.

NunavutNewfoundland and Labrador

Nova Scotia

New Brunswick

PEI **

Inbound CanadaAnnex

Canada in briefDon’t think of Canada as:

• Second-largest country in the world by total area spanning 3.8 million square miles

• 35 million inhabitants

• 10 provinces and 3 territories

• One of the world's wealthiest nations (the 11th nominal or 14th-largest PPP economy)

• $76,000 median household income

Think of Canada as a:

• Market opportunity of the same size as the State of California

• Diverse nation of several distinct cultures – notably the founding English and French, with tangible regional variations, and the constantly growing Asian / South Asian influences

• Very friendly audience which jealously guards the Canadian identity, but is very receptive to American goods and services - 80% live within 100 miles of the U.S. Border

Sources: eMarketer, Forrester, Canada Post

Cross-border e-commerce offers opportunities for U.S. merchants

3% buy from EU

8% buy from ASIA

33% buy from US

45% of total expenditure

62% of e-shoppers

Sources: JC Williams Group

Our expertise and certifications in the Canadian & US marketCertificate

*Description Why relevant for you?

PIPPartners in Protection (PIP) is a cooperative program between private industry and the Canadian Border Service Agency (CBSA) aimed at enhancing border and trade chain security

• Streamline and make border processes more efficient • Lower the risk and pre-approved businesses recognized as trusted traders

FAST

The Free and Secure Trade (FAST) program is a commercial clearance program designed to ensure safety and security while expediting legitimate trade across the Canada–U.S.border. A joint initiative between the Canada Border Services Agency (CBSA) and U.S

• Fewer delays which allow shorten transit times for importation into Canada

DOTAll imported vehicles must conform to the safety and bumper standards established by the Department of Transportation (DOT).  A vehicle will not be permitted into the United States unless the specific requirements are presented to U.S. Customs.

• Allow to run our own trailers with full control from pick-up to injection into Canada

IAC

An Indirect Air Carrier (IAC) Certificate means any person or entity within the United States not in possession of a Federal Aviation Administration air carrier operating certificate, that undertakes to engage indirectly in air transportation of property and uses for all or any part of such transportation the services of a passenger air carrier.

• We adopt and carry out a security program that meets current TSA requirements.• Increased security

*Source:• PIP: http://www.cbsa-asfc.gc.ca/security-securite/pip-pep/menu-eng.htmleng.html• FAST: http://www.cbsa-asfc.gc.ca/prog/fast-expres/menu-• DOT: https://help.cbp.gov/app/answers/detail/a_id/218/~/requirements-for-importing-a-vehicle-%2F-vehicle-parts• IAC: http://www.tsa.gov/stakeholders/programs-and-initiatives-1#Indirect Air carrier program

Operations flow: Dual Induction – East & West (Toronto & Calgary)

• Complete Door to Door Visibility• Quick and Reliable Transit Times• Package Quality Control At Border• Comprehensive Returns Management

Calgary

1. Data: Shipment data is imported into Landmark Global’s shipping system “Mercury.”

2. Processing: Imported shipments are processed and labeled with compliant carrier labels.

3. Grouping: Labeled shipments are consolidated and prepared for pickup.

4. Linehaul: Grouped shipments are tethered to a linehaul with tracking number(s); providing tracking to all labelled parcels

5. Pickup: Based on pre-determined schedule Landmark Global will arrange all pickups from origin facility.

6. Consolidation Center: Upon receiving consolidation at Landmark Global border facility, all packages will be entrance scanned and quality controlled.

7. Customs Clearance: After confirming shipments via entrance, scanning customs information is sent electronically to our customs broker and approved to clear into Canada.

8. Border Crossing: Shipments are moved across the Canadian US border on Landmark Global trucks.

9. Canadian Induction: All shipments are inducted into applicable carrier networks for final delivery throughout Canada.

10. Returns: The entire returns process is managed by our returns facility and team located in Canada, covering return label generation, returns logging, returns consolidation, and southbound returns clearance.

Toronto

Most shipments deliver within 1-4 business days from induction

Final mile transit times for shipping to CAvia East & West (Toronto & Calgary)

West Provinces Major Cities Urban AreasRural/

Remote

Alberta 1 Day 2-3 Days 4-13 Days

British Columbia 2 Days 3 Days 4-13 Days

Northwest Territories

4 Days 4 Days 5-13 Days

Saskatchewan 2 Days 3 Days 4-13 Days

Yukon 4 Days 4 Days 5-13 Days

Nunavut 4 Days 4 Days 5-13 Days

East Provinces Major Cities Urban AreasRural/

Remote

Manitoba 3 Days 4 Days 5-13 Days

New Brunswick 3 Days 4 Days 5-13 Days

Newfoundland & Lab

5 Days 6 Days 7-13 Days

Nova Scotia 3 Days 4 Days 5-13 Days

Ontario 1 Day 2-3 Days 4-13 Days

PEI 4 Days 5 Days 5 Days

Quebec 1 Day 2-3 Days 4-13 Days

*PEI: Prince_Edward_Island