With the rise of cross-border e-commerce, more and more sellers choose to settle on the Mercado platform. Among them, Mercado’s delivery model has attracted much attention. In this article, we will explore Mercado’s delivery methods in depth, especially the differences between the overseas warehouse model and the self-delivery model. Among these models, the key element of “the seller pays the freight before receiving the goods” runs through the whole process, and this new logistics method will be fully analyzed.
1. Overseas warehouse delivery model.
Mercado’s overseas warehouse delivery model, also known as Fullfillment by Mercado Libre (FBM), provides sellers with a one-stop warehousing and logistics solution. In this model, the seller’s products are stored in Mercado’s warehouse in Mexico, and Mercado is responsible for handling the order reception and delivery of local customers.
The main goal of this service is to shorten the order response time and achieve same-day or next-day delivery, thereby enhancing the consumer’s shopping experience and adding added value to the local distribution of products. In addition to logistics services, FBM also provides all-round support such as warehousing, packaging, delivery and customer service to help sellers get rid of logistics troubles and focus more on running their business.
Second, the self-delivery model.
Unlike the overseas warehouse model, the self-delivery model requires sellers to participate more in order processing and logistics processes. Meikeduo has set an order processing time limit for each delivery site, which is about 83 hours on average. This means that sellers need to deliver the order to the domestic collection warehouse officially designated by Meikeduo within 1-2 days to ensure that the order can be processed and delivered in time.
In the self-delivery model, sellers need to pay special attention to the store reputation and the buyer’s shopping experience. In order to maintain a good store reputation, sellers must handle self-delivery orders in a timely manner in accordance with platform regulations. In addition, all self-delivery orders require sellers to bear the freight, and the freight cost must be included in the product price. If the product inventory at the self-delivery site is insufficient, the seller must remove it from the shelves in time to avoid the situation where the order cannot be fulfilled.
Third, challenges and opportunities brought by new logistics methods.
Meikeduo’s self-delivery freight is paid by the seller before receipt. This model has solved the pain points in cross-border e-commerce logistics to a certain extent. However, this also brings some challenges and opportunities. Sellers need to advance the freight, which increases costs to a certain extent, but can also motivate sellers to manage orders and inventory more actively and improve overall customer satisfaction.
For sellers, in order to maintain a good store reputation under the self-delivery model, they need to manage the order processing time more strictly to ensure that orders can be delivered on time. At the same time, sellers also need to adjust their pricing strategies and incorporate freight costs into the selling price of goods to avoid operating losses.
On the consumer side, this logistics model will bring a faster and more reliable delivery experience, further improve shopping satisfaction, and is expected to promote consumers’ repurchase and word-of-mouth communication.
Conclusion: Meikeduo’s new logistics model of sellers paying for self-delivery before receiving the goods has brought new development opportunities for cross-border e-commerce. The overseas warehouse model and the self-delivery model have their own characteristics, and sellers can choose the appropriate delivery method according to their own situation. However, under this innovative model, sellers need to pay more attention to the order processing time, inventory management and adjustment of pricing strategies to achieve better operating results. Both the overseas warehouse model and the self-delivery model will play an important role in improving consumer experience and promoting the development of cross-border e-commerce.