Cross-border e-commerce logistics model: Analysis of the pros and cons of direct mail and overseas warehouses

In the field of cross-border e-commerce, the choice of logistics form is crucial. Direct mail and overseas warehouses are the two main cross-border logistics supply chain models, each with its own pros and cons. This article aims to explore the characteristics of these two modes and their applicable scenarios.

Direct mail: the “light cavalry” of agile supply chains

Direct mail service is a short-chain, agile supply chain model suitable for small batches and high-frequency order requirements. This model emphasizes the optimal combination of timeliness, cost and transportation price. For light and small items, the direct mail model improves the resource utilization efficiency of logistics companies and reduces the cost of a single shipment through cargo collection. In addition, sellers under the direct mail model are more like traders and need to ensure efficient operation of the production side and quality of goods to enhance the buyer experience.

According to different carriers, direct mail channels can be divided into two types: international commercial express direct mail and bilateral cooperation direct mail. The former, represented by FedEx, UPS, DHL, and TNT, has the advantage of timeliness and safety, but because the entire process is delivered by international express companies, the price is relatively high; the latter is transported through the Universal Postal Union channels or cooperation between express companies of the two countries. Although it is not as timely as commercial express delivery, it has certain advantages in terms of customs clearance speed and cost.

Overseas warehouse: the “fortress” of localized supply chain

Unlike direct mail, overseas warehouses are suitable for long-chain, localized supply chain models. It is not only a storage point, but also the core of the supply chain operation. By preparing batches of stable supply categories in advance to the consumer destination, the overseas warehouse model can quickly respond to customer needs, improve the timeliness of receipt and return response, and ensure the safety of goods.

It is worth noting that the overseas warehouse model has changed the traditional general trade channels. In general trade, the seller usually starts transporting the goods and collects the payment after receiving the order; but in the overseas warehouse model, the goods will be shipped to the overseas warehouse before the customer places the order, thus forming a transaction relationship and an agency relationship coexisting. situation. Still, this new model helps reduce middlemen, benefits consumers, and enhances the profitability of export sellers.

The battle of the supply chain: the battle between direct mail and overseas warehouses

Whether it is direct mail or overseas warehouse, both exist to adapt to different scenarios and needs. Direct mail, with its agility and cost advantages, is suitable for sellers who pursue quick response and cost control; while overseas warehouses, with their localized services and support for large items, are more suitable for merchants who require long-term stable supply and improved customer experience. For cross-border e-commerce companies, in-depth research and flexible use of these two models will be the key to improving competitiveness.

Conclusion

To sum up, cross-border e-commerce companies should comprehensively consider their own business characteristics and market needs when choosing logistics models. Whether you choose direct mail or overseas warehouses, the purpose is to better serve consumers and enhance the shopping experience. In the future, as the cross-border e-commerce market continues to mature and develop, both models will play their unique roles and jointly promote the prosperity of global trade.