How to choose cross-border e-commerce logistics?

Choose cross-border e-commerce logistics

How to choose cross-border logistics? This is a question that every independent website newbie or cross-border novice will face. There are many factors to consider, such as tracking logistics information, complying with the laws and regulations of the countries or regions where the products are sold, and dealing with tax issues, etc.

Don’t worry, I will give you a detailed introduction to the five commonly used modes of cross-border logistics, hoping that you won’t make any mistakes.

Cross-border Logistics Process

After the customer places an order on the independent website, the cross-border logistics process generally consists of the following steps:

First-mile Transportation

The packaged goods will then need to be transported to the logistics company you choose, which may be a domestic warehouse or directly to an international port.

Main-line Transportation

The logistics company will transport your goods overseas according to the transportation method you choose, such as air transportation, sea transportation, land transportation, etc. This phase is usually called main-line transportation.

Customs Clearance

After the goods arrive in the destination country, they need to pass through the customs of that country for inspection and to pay the relevant customs duties and value-added tax. Your logistics company will usually help you with these matters.

Last-mile Delivery

After customs clearance, the goods will be delivered to the final destination, which is the customer’s hands. During this process, international express companies or local express companies in the destination country may need to be used for delivery.

Choosing a suitable logistics method and logistics company is crucial for ensuring the safety of the product, timely delivery to the customer’s hands, and cost control.

In the following sections, I will introduce several common cross-border e-commerce logistics models in detail, and how to choose the appropriate logistics method and logistics company based on your own needs.

Five Cross-border Logistics Modes

The first type, postal parcel.

I believe everyone is familiar with this, such as China Post, EMS, etc. There are also others such as Hong Kong Postal Parcel, EMS, International ePacket, Singapore Parcel, Swiss Postal Parcel, etc. that fall into this category.

Postal parcel logistics cost is extremely low with obvious price advantages.

In addition, it has a wide network coverage, numerous logistics channels, and excellent customs clearance capabilities, but the drawbacks are slower delivery speed and higher loss rate. Usually, at least 15 days are needed for postal parcel delivery.

The second type, international express delivery.

Such as DHL, UPS, FedEx, TNT, etc., providing fast transportation and high-quality services, allowing full tracking of logistics information.

However, the price is higher and is usually only used when customers strongly request express delivery services or when you can charge customers for shipping. In addition, high-value products can also be transported using this method.

The third type, dedicated logistics.

For example, so-called American dedicated line, European dedicated line, Australian dedicated line, Russian dedicated line, etc. This logistics solution is suitable for large quantities of goods to be transported to specific countries or regions, with a low loss rate, but the range of domestic collection is relatively limited, and the timeliness is slower than that of commercial express delivery. Usually, it can be delivered within 4-7 working days.

The fourth type, overseas warehouse.

This involves setting up a warehouse in the target sales country or region. This model includes two distribution stages. The first is the head transport, where Chinese merchants transport goods to the overseas warehouse via sea, land, air, or intermodal transport. Then, the overseas warehouse inventory is remotely managed through the logistics information system, with real-time inventory management.

The second stage is local distribution. Overseas warehouses will deliver the goods to customers through local postal services or express delivery companies according to the order information. This method can ensure logistics timeliness and improve the shopping experience for customers, but the obvious disadvantages are high operating costs, high warehousing costs, and long capital turnover cycles.

The fifth type is international services for domestic express delivery.

For example, domestic express delivery companies such as SF Express, EMS, and YTO Express started their international business layout relatively late, with limited coverage of overseas markets, but they have high delivery speed and strong customs clearance capabilities.

Among domestic express delivery companies, EMS has a relatively mature international business and can currently directly reach more than 60 countries worldwide. The fees are relatively low, and the timeliness is also good, such as an average of 2-3 days for Asian countries and 5-7 days for European and American countries.

How to Choose a Cross-border Logistics Model?

Each logistics channel has its own advantages and disadvantages, and there are huge differences in price, stability, and timeliness among different logistics channels. Choosing the appropriate transportation method depends on your product attributes and business needs.

First, clarify your shipping needs, confirm whether the product is a sensitive product, the volume and weight of the product, whether it is a small or large shipment, the type of package is single or multiple, whether container transportation is needed, whether it is air or sea transportation, and what country the shipment destination is in and how many days of arrival time can be accepted.

After determining the needs, the next step is to select a logistics channel, which is the 5 logistics models I introduced today, and then find a logistics provider that can meet your needs and integrate it into the independent station background.

Initially, I suggest that everyone should contact more logistics companies and combine the points I just provided, so that you can understand which logistics to choose under what circumstances.

However, the selection of logistics providers varies from person to person. Different logistics brands have their own advantages, whether it is in terms of price, service, or logistics management. Independent stations generally have already cooperated and integrated with mainstream service providers, and can automatically synchronize product order numbers and easily synchronize logistics information.

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