Difficulties of cross-border e-commerce logistics:
(i) Long logistics chain and complex operation
Due to the addition of overseas warehousing and distribution, maritime transportation and customs clearance, the entire chain of cross-border e-commerce logistics is naturally longer and more complex than ordinary logistics chains. In addition, there are many entities such as e-commerce, customs, national inspection, commodity inspection, taxation, foreign exchange, etc., and various information needs to be interconnected, so its operation is naturally more complex and more difficult.
(ii) Low degree of automation and informatization
Cross-border e-commerce logistics involves massive orders and massive SKUs (minimum inventory units). After the orders are divided, the order picking, delivery and return and exchange processing are completed quickly. Therefore, the degree of automation of the logistics system is required to be high. However, most cross-border e-commerce companies have a short development time, insufficient accumulation, insufficient advanced logistics information systems, and less introduction of automated logistics equipment and technology. Therefore, delayed order processing, low efficiency and high error rate, chaotic inventory management and even lost items have become the main problems that plague the development of cross-border e-commerce.
(III) Insufficient warehouse space
With the rapid development of cross-border e-commerce, existing warehouse resources are becoming increasingly stretched. Especially on promotional days such as “Double 11” and “Black Friday”, the sharp increase in order volume has obviously posed a challenge to the existing logistics system, and warehouse overflow is common.
(IV) Complex reverse logistics activities such as returns and exchanges
Slow order processing, poor logistics experience and other factors have led to higher return and exchange rates and consumer complaint rates for cross-border e-commerce than domestic e-commerce. Therefore, reverse logistics activities are also more complex, increasing the difficulty of cross-border logistics management and operation.
Due to geographical factors, the logistics link is the biggest pain point and entry barrier for cross-border e-commerce. Problems such as high freight costs for single items, slow delivery speeds, and difficult to control damage and package loss rates have become bottlenecks in the development of cross-border e-commerce logistics.