E-commerce logistics services play an extremely important role in the entire e-commerce business, accounting for a large proportion of consumers’ entire shopping experience, including the speed and slowness of logistics, the completeness of received packages, and the speed of after-sales returns. Convenience, etc. all affect consumers’ overall impression of the store, which in turn affects consumers’ retention in the store.
Currently, Lazada mainly has three logistics methods.
At present, the vast majority of domestic cross-border sellers still use LGS logistics. Some merchants with popular products and meeting category requirements adopt LGF logistics, and a very small number of merchants have implemented local warehouse logistics. However, in order to improve the shopping experience, more merchants regard the realization of local warehouse logistics as a business goal. Take a pack of wet wipes as an example. When searching for the keyword wet wipes on Lazada, there are often no cross-border sellers in the search results. What is the reason? Wet wipes are fast-moving consumer goods and urgent needs. Why don’t cross-border merchants make them? It’s not that there is no profit, but under price competition, if the freight is greater than the retail price of the product, there will be no way to achieve sales. This is everyone’s pain point. Here we make a price comparison (the prices of LGS Logistics and LGF Logistics will fluctuate, Figure 11-3 is only for reference), taking a pack of 0.5kg wet wipes as an example, assuming the retail price is 10 yuan.
Is it clearly visible? This is why some merchants want to implement overseas warehouses. In addition, when shipping from China to ASEAN countries, not only tax refunds are available, but also zero tariffs can be achieved through FORME at the port of landing. This actually reduces the cost of goods, but this part will not be explained in detail in this book.
In the logistics selection process, the final merchant process is often LGS→LGF→overseas local warehouse, but this process needs to face local management, business standards, ERP and other issues in the six countries. The editor hopes that merchants can follow the steps and do mature things in mature times. I also hope that all merchants can overcome all difficulties on the Lazada platform, realize their e-commerce dreams, and open up an overseas world!