Full analysis of cross-border e-commerce logistics models and strategies to deal with common problems
In the world of cross-border e-commerce, logistics plays a vital role. Choosing the right logistics model not only directly affects sales efficiency, but also relates to user experience. At present, there are five main export channels for cross-border e-commerce logistics: postal parcels, international express delivery, domestic express delivery, dedicated line logistics and overseas warehouses.
Postal parcel
Postal parcels have become the first choice of many cross-border e-commerce companies because of their affordability. In China, about 70% of cross-border e-commerce export business is completed through the postal system, and China Post accounts for about half of the market share. Although postal parcels are relatively cheap, the speed is slow and the packet loss rate is high. It is suitable for merchants who are cost-sensitive but do not pursue speed.
International Express
International express delivery such as DHL, TNT, UPS and FedEx are known for their fast and reliable services. This logistics method is suitable for high-value goods or products with strict timeliness requirements. Although the cost is higher, the packet loss rate is low and the service quality is high.
Domestic Express
With the development of cross-border e-commerce, domestic express delivery companies such as EMS and SF Express are also gradually expanding their international business. These couriers offer fast and relatively affordable international delivery services, although their reach in global markets is limited.
Special line logistics
Dedicated line logistics focuses on delivery to specific countries or regions, with the characteristics of fast speed, reasonable price and low packet loss rate. This is an ideal shipping option for most cross-border sellers.
Overseas warehouse
For larger or heavier items, overseas warehouses are a good choice. By leasing third-party overseas warehouses, merchants can reduce logistics costs and provide flexible return and exchange solutions. However, overseas warehouses also have their limitations, such as the problem of backlog of goods.
Logistics customs clearance status
Under international trade rules, compliance is crucial. Cross-border sellers need to ensure that all operations comply with local laws and regulations. There are three main obstacles that can be encountered in the customs clearance process: the goods are confiscated, forced to be returned, or required to supplement documents and pay taxes.
Transportation costs
Currently, most small and medium-sized enterprises use parcel or dedicated lines to transport goods. While these methods are economical, the costs may exceed the profit from the merchandise. In addition, if the goods are lost in transit or returned, the cost will increase further.
Logistics information tracking
Cross-border logistics involves multiple links, resulting in lagging information updates. Low-cost logistics models often take longer to complete delivery than commercial express delivery.
Return and exchange issues
Since the item cannot be inspected in person, the buyer may be dissatisfied and request a return. For cross-border transactions, returns are costly, sometimes exceeding the value of the goods themselves.
Overseas warehouse utilization rate
Although overseas warehouses can help solve the problem of returns and exchanges, it is not economical for small and medium-sized enterprises to use overseas warehouses. Warehousing is expensive and managing overseas inventory is complex.
To sum up, different logistics models are suitable for different cross-border e-commerce businesses. Choosing an appropriate logistics model requires taking into account factors such as product characteristics, target markets, costs, and service requirements. Only by choosing the export channel that best suits you based on the actual situation can you ensure smooth flow of goods and a satisfactory user experience.
The above information is integrated from multiple articles.