There are many different logistics methods for cross-border e-commerce, each of which has its own characteristics and applicable scenarios. The following are common cross-border e-commerce logistics methods:
1. Postal parcel mode
China Post occupies an important position in international postal parcels. Its parcel network coverage is high, logistics channels are wide, and prices are relatively cheap, which makes the postal parcel mode occupy a large proportion in cross-border logistics. At present, 70% of China’s cross-border logistics are sent through postal parcels.
Commonly used postal logistics include China Post Parcel, China Post Large Parcel, Hong Kong Post Parcel, EMS, International e-Postal Bao, Singapore Parcel, Swiss Post Parcel, etc. Among them, Postal Parcel, International e-Postal Bao and EMS are the most commonly used.
2. International Express Mode
The four major international express companies – DHL, TNT, FEDEX and UPS, have become an important choice for cross-border logistics with their unified information platform operation, guaranteed timeliness, convenient for consumers to query real-time logistics information, and low packet loss rate.
But at the same time, their service prices are relatively expensive, and some counterfeit brands, products containing batteries, and special products are basically unable to be delivered. When choosing an international express delivery model, merchants need to weigh the pros and cons based on the characteristics of the product and the needs of customers.
3. Dedicated line logistics model
Cross-border dedicated line logistics generally uses air transportation to transport to foreign countries, and then clears customs and delivers them in the destination country through a cooperative local company. This model mainly concentrates the shipment of large quantities of products to a certain country or region, reduces costs through scale utility, and has a fast timeliness. It is particularly suitable for small and medium-sized cross-border sellers with weak risk resistance.
Its advantages are high timeliness, high cost-effectiveness, and full-process logistics information in the formulation of distribution countries and regions. However, its disadvantages are also more obvious, that is, the distribution countries are limited and the distribution range is limited. When using the dedicated line logistics model, merchants need to make reasonable plans based on the target market and product characteristics.
4. Domestic express delivery model
EMS, SF Express and “Sitong Yida” in domestic express delivery also have their own characteristics in cross-border logistics. EMS has the most complete international business. Relying on postal channels, it can directly reach more than 60 countries around the world, with relatively low costs, and strong customs clearance capabilities in China.
SF Express’s international business is also relatively mature. It has opened express delivery services to many countries with relatively fast time efficiency. “Four Links and One Delivery” started late in cross-border logistics, but is also actively expanding its business. Merchants need to choose appropriate domestic express delivery for cross-border transportation based on the advantages and scope of application of different express delivery.
5. Overseas warehousing model
The overseas warehousing model is to prepare goods in the logistics warehouse of the destination country in advance, and then ship them directly from the overseas warehouse to the customer after the customer places an order. This model can improve logistics time efficiency and bring customers a high-quality logistics experience, but it also requires merchants to prepare overseas warehouses for hot-selling products to avoid inventory backlogs. In addition, the overseas warehousing model also requires merchants to invest a certain amount of funds and resources for management and operation.
Different cross-border logistics models have their own advantages and disadvantages. Merchants need to choose the most suitable logistics model according to their actual situation and needs to ensure that the goods can be delivered to customers in a timely, accurate and safe manner. At the same time, they must continuously optimize the logistics process, improve logistics efficiency, reduce logistics costs, provide customers with a better service experience, and promote the sustainable development of cross-border e-commerce business.