Kapoklog Logistics tells you what you need to know about cross-border e-commerce
Kapoklog Logistics tells you what you need to know about cross-border e-commerce
Cross border e-commerce logistics
For cross-border e-commerce, logistics is not only the key to cost, but also the core of customer experience. Choosing the appropriate logistics mode can help you balance efficiency and cost. This article will sort out three main logistics models for you and provide practical logistics optimization suggestions.
1, Three logistics modes
Common logistics modes include self shipping, overseas warehousing, and 3PL (third-party logistics).
one
Self shipping
Directly ship from domestic warehouses to overseas buyers, usually using postal parcels or international express delivery (such as DHL, FedEx).
Low cost and slow delivery time (7-30 days).
Suitable for beginners or sellers with small order volumes.
two
Overseas warehouse
Transport the goods to the warehouse in the target market in advance, and ship them locally after the order is placed.
Fast delivery (1-3 days), but there are storage fees and inventory risks.
Suitable for sellers with stable sales and a pursuit of brand image, prioritize building warehouses in areas with concentrated consumption.
three
3PL (Third Party Logistics)
Outsourcing warehousing, packaging, and distribution to professional logistics service providers.
High flexibility, moderate management costs, and delivery time of about 5-10 days.
Suitable for sellers experiencing order growth and reducing operational pressure.
2, How to choose logistics mode?
The logistics requirements vary depending on the order volume.
one
Monthly order quantity<100 orders: self shipped
When there are few orders, the storage fees of overseas warehouses and the fixed costs of 3PL are not cost-effective. Self shipping is simple and cheap, suitable for the initial stage.
The cost of postal parcels is as low as a few yuan, suitable for light and small items;
The unit price of the product is high, so using DHL eCommerce (with a delivery time of about 10 days) is more secure.
two
Monthly order quantity of 100-500 orders:
3PL service
Slow self delivery time may result in customer loss, and overseas warehouse costs are also too high. 3PL can improve efficiency without the need for self built warehouses.
Choose a reliable service provider with cross-border experience (such as ShipBob), and bulk shipping can also lower shipping costs.
Source ShipBob
three
Monthly order quantity>500 orders: Overseas warehouse
When there are many orders, fast delivery can improve repurchase rate and reputation, and overseas warehouses are the best choice.
Based on sales data, stock up and prioritize setting up warehouses in major markets (such as the West Coast of the United States) to avoid inventory backlog.
3, Logistics optimization suggestions
Optimize logistics
Data driven decision-making
Regularly analyze order data and predict demand. If using Excel to record order volume and logistics timeliness, predict trends. Having too much stock can put pressure on money, while having too little stock can lead to stockouts.
Compliance must be in place
Pay attention to the policies of the target market, such as VAT (Value Added Tax) in the European Union or tariffs in the United States, to ensure accurate declaration information. Errors may result in customs clearance delays or fines.
The HS code (Harmonized System Code) should be filled in correctly, which is the international code used by customs to identify goods.
Control the total cost
Don't just look at shipping costs, storage fees, customs clearance fees, and return costs should all be included. For example, optimizing packaging, reducing weight and volume can save a lot of money
Mode switching
Self delivery → 3PL
Test the timeliness and service of 3PL in advance, don't give them all the goods at once.
In the initial stage, there may be additional management fees (tens to hundreds of dollars per month) that need to be included in the budget.
Self delivery or 3PL → Overseas warehouse
The stocking quantity should be calculated accurately. Don't transport too much at first, and add more after testing the water. We also need to sign a good warehousing contract to avoid price increases in the future.
• Inventory backlog ($10-20 per cubic meter per month) and return fees.
During the transition period, the old inventory and new mode should be well connected to avoid making customers wait too long. Notify buyers in advance of possible changes in delivery time.
Flexibly adjust logistics modes based on order volume, while ensuring compliance through data analysis and compliance management. Be cautious when switching to avoid hidden costs. Logistics optimization is a dynamic process that follows the business in order to become smoother and more efficient.
