Guides: How to choose shipping methods for cross-border business?

Introduction: This is an article to introduce various shipping methods of cross-border business, and comparison of their advantages and disadvantages.
In cross-border B2B business, logistics is the last link, which is related to safe delivery and buyer convenience.
We are familiar with the logistics business are sea, air, express, land, multimodal transport, etc., which can be subdivided into sea container full container, LCL, air, international express (commercial express, postal parcel), special line logistics, etc., and the business associated with the trailer, customs clearance, customs clearance, overseas warehousing, overseas return business, export tax rebates, documents, etc..

Some sellers will say, you just help me introduce a low price of logistics providers on it, I do not need to know so much. Is it really better to have a low price? When the value of your goods is high, you are still only considering the price issue? Is it only consider the small package, only consider the express? In fact, in the process of our operations, we will often encounter many problems, such as

  1. the goods cannot be tracked, you touch the head do not know the brain Cloud warehouse logistics
  2. the buyer did not receive the goods, the goods lost package
  3. cannot clear customs, detained by customs (ordinary goods, sensitive goods, quota issues, etc.)
  4. Tight warehouse space during the peak season, the schedule is not due, the goods can not be sent out how to do?
  5. Transportation and delivery cycle is too long, buyers wait hard to see the goods
  6. Inventory turnover days, the cycle of logistics, are there any considerations?

how to choose a suitable mode of transport, the key lies in how to facilitate buyers as much as possible, you need to follow the following principles to choose a suitable mode of transport

Principle 1: good security, trackable, as far as possible to allow buyers to keep abreast of the delivery status of items.

Principle 2: good timeliness and controllability. Items need to be delivered within the buyer’s desired delivery time (usually buyers expectation with the price of goods to increase the cloud warehouse and increase, if buyers can buy the same goods in the local, buyers expectations will also be higher)

Principle 3: Good service, cost-effective. In the premise of ensuring that the first and second principles are not violated to choose a more cost-effective logistics methods

So, cross-border B2B business in the end should choose what logistics?

1. International postal parcels

International postal parcel, refers to the use of personal parcel form for delivery, through the universal postal system to achieve the import and export of goods logistics mode.

International postal parcel is an international postal parcel business service carried out by China Post, which belongs to the category of postal air parcel.

It is an economical international express service project.

It can be sent to various postal outlets in more than 230 countries and regions around the world.

At present, more than half of China’s cross-border logistics are sent by postal parcels.

 

① Advantages

High network coverage, wide logistics channels, can be sent to all parts of the world, as long as there is a post office can be delivered (except for very few countries and regions);

Cheap price, international postal parcels have absolute price advantage compared with other transportation methods, and also cheaper than the price of Hong Kong parcels.

 

② Disadvantages

Slow delivery speed:

To neighboring Asian countries 5-10 days;

To major countries in Europe and America 7-15 days;

Other regions and countries 7-30 days.

High rate of lost items:

If you send unregistered, you can’t track the logistics information at all, and the rate of lost items is very high, and lost items are not compensated.

 

③ Sending requirements

Weight limit: limited to 2KG (except Afghanistan);

Volume limit (non-cylinder cargo): length + width + height ≤ 90CM, the longest single side is 60CM, the minimum size single side length ≥ 17CM, width ≥ 10CM.

 

④ Charging standard

The courier charge is different depending on the destination country, about 62-176 RMB.

Plus a registered fee of 8 yuan.

2.International Express

International express, mainly refers to UPS, FedEx, DHL, TNT and other courier industry giants constitute the international express system.

A very important feature of international express is the difference in the courier environment in each country, especially the difference in the soft environment of express.

Different countries of different logistics applicable laws, different levels of technological development, different courier standards and different customs that international express are subject to certain limitations.

And after the international express mail arrives at the destination country, it needs to be re-transferred in the destination country in order to deliver the express mail to the final destination.

 

①Advantages

There is a self-built global logistics network with high timeliness.

On-time shipment of import and export goods, timely delivery of goods to their destinations, which is important for fulfilling import and export trade contracts, meeting the needs of the competitive market for goods, improving market competitiveness, and timely settlement of foreign exchange.

 

② Disadvantages

Involving a wide range of areas:

International express transport involves many departments at home and abroad, the need to deal with different countries and regions of the shipper, transportation, commodity inspection agencies, insurance companies, banks or other financial institutions, customs, ports and a variety of intermediate agents.

High risk:

Due to the many links in the international express transport, changes in the international situation along the transport, social unrest, various natural disasters and accidents, as well as war, embargoes or piracy, etc., may directly or indirectly affect the international express transport.

Expensive:

Because of more intermediate links and self-built logistics network, so the cost will be high, the price is very expensive.

 

③ Sending requirements

Cargo packaging must be strong, intact, lightweight, and can prevent package breakage, leakage of contents and scattering in the process of transportation.

For small express cargo (such as small samples), a certain volume of wooden boxes or cartons must be added (padded with filling materials, etc.), and the volume of the entire express cargo after packaging should not be less than 40CM in length, width and height, and the smallest side should not be less than 5CM.

In case of international express parcels with the following conditions, advance booking is required:

The single dimensional length of the cargo exceeds 330cm (10 feet 25.2 inches);

The weight of a single piece of cargo exceeds 68 kg;

Cargo single piece not exceeding 330cm and weight not exceeding 68kg (149.9Ib), but one shipment exceeding 300kg (661.4Ib).

Some cargoes have special requirements.

 

④ Charging Standard

The weight of international express parcel is divided into two kinds of actual weight and volume weight, and the courier company will take the larger one of the two kinds of weight as the basis of billing.

International express parcels with less than 0.5kg of goods will be charged according to 0.5kg;

21Kg (46.3Ib) of goods below according to the small goods billing, according to the first weight, refill weight billing, billing unit for 0.5Kg (1.1Ib), 21Kg and 21Kg of goods above according to the large goods billing;

International express prices vary greatly, the specific price to send express packages, contact the consignment of the international courier company operator offer shall prevail.

3. PEX EXPRESS

PEX EXPRESS, also known as freight line, refers to the logistics company with its own trucks, special vehicles or air resources, transporting goods to its dedicated line of destination.

Generally in the destination has its own branch or cooperation network, so that the truck back and forth have goods loaded.

And by the partner company for the destination country delivery.

For example, in Japan, the logistics company focuses on transporting goods from China to Japan.

At present, the development of special line logistics mode in the United States, Europe and the United States, Australia, Russia special line is relatively mature.

 

①Advantages

Large quantities of goods can be transported together.

The scale effect can reduce the cost and make the logistics price lower.

 

②Disadvantages

The special line usually departs only when the goods are full, so the departure time is not certain.

 

③ Sending requirements

The special line does not have too many requirements for goods, as long as it meets the national import and export requirements.

 

④ Charges

Each special line charges different standards.

4.Overseas Warehouse

Sellers establish overseas warehouses in overseas sales destinations.

The goods are exported from the country through the form of sea, freight, air storage to the country’s warehouse.

After the buyer places an online order for the required items, the seller only needs to contact the overseas warehouse online for delivery.

 

① Advantages

The goods are sent from the buyer’s country, which greatly shortens the time required for shipping logistics from the home country.

It avoids the pressure of the logistics line bursting, and also improves the shopping experience of users.

 

② Disadvantages

High storage cost, long capital return cycle, high operating cost.

③Shipping requirements

Shipping requirements depend on the requirements of the logistics provider we choose to deliver the goods to the overseas warehouse.

 

④ Charges

Overseas warehousing cost=headway cost+storage and handling cost+local delivery cost

First-haul cost: Freight cost of goods from China to the overseas warehouse.

Warehousing and handling fee: The fee incurred when the customer’s goods are stored in the overseas warehouse and handled for local delivery.

Local delivery cost: It is the local courier cost generated when the goods are delivered to the customer’s goods in the overseas local country.

 

So, which products are suitable for overseas warehouse mode? Next, let’s take a look together at:

  (1) Size and weight of products: Since the specifications of these products are restricted by parcels and special lines, and the cost of using international express is very expensive, the use of overseas warehouse will break through the product specifications and reduce logistics costs.

  (2) Products with high unit price and gross profit: High-quality overseas warehouse service providers can control the breakage rate and lost parts rate to a very low level, which can reduce the risk for sellers of high-value goods.

  (3) High turnover rate of goods: that is, what we often call the best-selling products. For the best-selling goods, sellers can process orders more quickly through overseas warehouses and recycle funds; for the slow-selling goods, they take up funds and also incur corresponding storage costs. Therefore, in comparison, goods with high turnover rate will be more suitable to use overseas warehouse.

5.COD logistics

COD logistics mode, i.e. cash on delivery service mode, the goods are delivered by the logistics company on behalf of the charges, which is often referred to as “cash on delivery”.

At present, the cross-border e-commerce logistics industry popular COD cross-border e-commerce B2C logistics, many companies have launched cash on delivery business.

The biggest advantage of the COD logistics model is that the traditional logistics model is abandoned, the cost of advances during the accounting period and the risk of bad debts, the entire cash flow operation link and the traditional model is reversed.

The seller’s sales revenue and profit part of the cash flow is all controlled by the freight forwarder. The most attractive thing for sellers is a large and substantial cash flow and the absence of the risk of bad debts.

Conclusion:

Due to the small weight and high value of jewelry products, in most cases Sobling will advise customers to choose the 2nd logistics solution — FedEx/UPS/TNS/DHL and other international express, which is fast, arrives in a limited time and custom clearance quickly. There are almost no other disadvantages except its high price.

Copyright @ Sobling. Jewlery — All-in-one solutions for Silver jewelry OEM and ODM, China sterling silver jewelry factory, manufacturer and supplier

Heman

Heman

Jewelry Products Expert --- 12 years' abundant experiences

Hi Dear, I am the author of this article and an expert in silver jewelry. For the past 12 years, I have served 29 clients from all over the world, such as Hiphopbling and Silverplanet, assisting and supporting them in creative jewelry design, jewelry product development and manufacturing.

If you have any questions about jewelry product, feel free to call or email me and let’s discuss a appropriate solution for you, and you will get free jewelry samples to check the craftsmanship and jewelry quality details.

Have a great day!

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Heman

Heman

Jewelry Products Expert --- 12 years' abundant experiences

Hi Dear, I am the author of this article and an expert in silver jewelry. For the past 12 years, I have served 29 clients from all over the world, such as Hiphopbling and Silverplanet, assisting and supporting them in creative jewelry design, jewelry product development and manufacturing.

If you have any questions about jewelry product, feel free to call or email me and let’s discuss a appropriate solution for you, and you will get free jewelry samples to check the craftsmanship and jewelry quality details.

Have a great day!

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