Must-know for foreign trade sellers: Detailed explanation of shipping terminology and key indicators of cross-border e-commerce marketing

In the field of foreign trade, whether it is traditional shipping operations or modern cross-border e-commerce marketing, it is crucial to master relevant terminology. This article aims to comprehensively introduce common terms in shipping such as FOB/CIF/CFR, etc., as well as the key concepts of search engine marketing (SEM) and email marketing in cross-border e-commerce.

Commonly used terms in shipping

Trade terms

• FOB: Free on board (… designated port of shipment). This means that the seller is responsible for delivery at the named port of shipment and all subsequent costs, risks, losses or damages are borne by the buyer. This term applies to sea or inland waterway transport.

  Under FOB terms, foreign customers usually specify details including the consignor, consignee, notifier, designated shipping company, etc. This also means that although the freight forwarder can only charge an agency fee, it can also be charged when the shipment of goods is stable. Can obtain greater profits. In China, FOB exports account for 80% of total exports, forming a model in which foreign customers designate freight forwarders. Therefore, if domestic freight forwarders want to develop their own business, they need to establish contact with overseas buyers and become their designated freight forwarders.

• CFR/CIF: refers to cost and freight and cost, insurance and freight respectively. The seller needs to pay the cost of transporting the goods to the designated port of destination, but after the goods cross the ship’s rail at the port of shipment, the risk and additional costs are borne by the buyer.

  In addition to assuming the same obligations as CFR, CIF is also responsible for purchasing insurance and paying premiums for the goods during transportation.

The commonalities and differences between FOB/CIF/CFR

The common points include that the scope of application is ocean shipping and inland waterway shipping, the delivery location is the port of shipment, and the risk transfer occurs at the port of shipment. The differences are mainly reflected in the distribution of responsibilities for transportation and insurance and the composition of prices.

Cross-border e-commerce search engine marketing terms

• Clicks: Measures the amount of traffic brought by advertisements, which directly affects the company’s marketing costs.

• Conversion rate (CVR): refers to the proportion of users who effectively register or purchase after clicking on an ad. The calculation formula is CVR = (number of conversions / number of clicks) * 100%.

• PV/UV: Page views (PV) and unique visitors (UV), used to evaluate the popularity of the website.

• CPC/CPM/CPS: Pay-per-click (CPC), pay-per-thousand impressions (CPM), and pay-per-sale (CPS) is the main payment model of SEM.

Cross-border e-commerce email marketing terms

• Sender line/Subject line: An important factor that affects whether an email will be opened.

• Open rate: Reflects how many recipients actually viewed the email content.

• Bounce: When an email fails to be successfully delivered due to various reasons, it is divided into hard bounce and soft bounce.

• Opt-out or unsubscribe: A user requests to stop receiving emails from a specific mailing list.

• Confirmation/Double Opt-in: A way to ensure that a user is willing to receive email.

The above terms cover key links in foreign trade transactions and are of great significance for improving operational efficiency and reducing communication costs. I hope this article can help foreign trade practitioners better understand and apply these terms.