Currently, cross-border e-commerce logistics has the following problems:
High transportation costs
Currently, most small and medium-sized retail companies still use parcels, dedicated lines and other methods for logistics transportation. If the customer has a large amount of wholesale, you can consider it. If the customer only buys one item, there will be no return on commercial express delivery. But on the whole, the cost of postal parcels or dedicated lines is still higher than the profit of goods. Generally speaking, logistics costs should be controlled at about 30% of the total cost. In addition to customs clearance and registration fees, if the goods are lost or returned by customs during transportation, the cross-border logistics costs of cross-border e-commerce retail enterprises will further increase or even cause losses.
Transportation time is long and logistics information tracking is not timely
There are many cross-border logistics links and wide coverage. The time required for domestic transportation, customs inspection, customs clearance, and overseas distribution far exceeds that of domestic logistics. In order to control logistics costs, small and medium-sized cross-border e-commerce retail companies often choose logistics models with lower logistics costs. We all know that commercial express delivery is expensive. In addition to its wide service range and good service, it also has the advantages of fast transportation and short signing time. If you choose a transportation method with low logistics costs, the logistics cycle will also increase. In case of special circumstances, such as difficulties in customs clearance in some remote areas or countries, it may take 2-3 months to sign in.
It is difficult to return or exchange goods, and the customer experience is poor
Online shopping is different from shopping in physical stores. Since there is no personal experience with online shopping, when customers receive the physical product, there will be a gap between expectations and reality, which can easily lead to returns or negative reviews. Cross-border e-commerce returns and exchanges are different from domestic returns and exchanges. The shipping costs are directly borne by the seller. The shipping cost for returned parts overseas is very expensive, several times or even dozens of times higher than the shipping cost. For the seller, it would rather discard and resend the goods than return and exchange them. Even for returns, there is no complete return logistics channel. It may be lost during the return process.
Low utilization rate of overseas warehouses
Overseas warehouses can very well solve the problem of customer returns and exchanges. However, for small and medium-sized cross-border e-commerce retail companies, the use of overseas warehouses The frequency is very low. Firstly, due to product retail, orders may come from all over the world and are not limited to their own country; secondly, due to the high warehousing costs in overseas warehouses, for small and medium-sized cross-border e-commerce companies, the high warehousing costs are a very big deal Expenses; thirdly, due to overseas warehouse inventory control, defective products during transportation, mountains of slow-moving products in the warehouse, customer returns and exchanges, etc., the seller needs to consider how to handle, destroy, sell at a low price, or ship back to China, and the procedures The fee is also a big expense.