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Explain the five modes of cross-border e-commerce logistics

Date: 2018-08-31
BrowsingS: 43
Source:
Author: 亦邦物流
Release date: 2018-08-31
BrowsingS: 43

The development of economic globalization has made trade between countries more frequent. Countries around the world exporting superior products overseas and importing the required products have become an important measure to promote their economic and social development. As China's economic development enters a new normal era, cross-border e-commerce logistics, as a new bright spot in national economic growth, has attracted the attention of the state and the industry.

 

However, at the same time of the rapid development of cross-border e-commerce, high logistics costs, slow distribution, and low service levels have become urgent problems in the development of e-commerce. Different from domestic logistics, cross-border logistics is far away, long-term, and costly. Not only that, but also related issues such as customs clearance (going through customs clearance procedures) in the destination country. The problems in the middle have caused many sellers to break their brains. Various complicated logistics methods also make sellers in the fog, sellers can only sigh 'the best for their own.'

 

Today,CITITRANS comes to you for a cross-border e-commerce seller to take a look at several logistics models for cross-border e-commerce for your reference.

 

Postal packet

According to incomplete statistics, 70% of China's cross-border e-commerce export business is delivered through the postal system. China Post has a 50% share. Hongkong Post and Singapore Post are also common logistics methods for cross-border e-commerce sellers in China.


Advantages:

The postal network covers the whole world and is wider than any other logistics channel. Moreover, since the post is generally state-owned and has state tax subsidies, the price is very cheap. 

Disadvantages:

Generally, it is out of the country by private parcel. It is not convenient for customs statistics, nor can it enjoy normal export tax rebates. At the same time, the speed is slow and the packet loss rate is high.

 

International express

International express delivery mainly refers to the four giants UPS, Fedex, DHL and TNT. International express delivery has high requirements for the provision, collection and management of information, supported by global self-built networks and international information systems.


Advantages:

Fast speed, good service, and low packet loss rate, especially for developed countries in Europe and America.

 Disadvantages:

The price is expensive, and the price of the fee varies greatly. Generally, cross-border e-commerce sellers will only use the customer when the customer strongly requests timeliness, and will charge the customer for shipping.

 

Dedicated logistics

 Cross-border special-line logistics is generally a popular logistics method by transporting goods to foreign countries by means of air-class cabins, and then distributing them through the cooperative company in the destination country.

 

At present, the most common logistics lines used in the industry include the US special line, the European line, the Australian line, the Russian line, etc. There are also many logistics companies that have launched the Middle East and South America.


CITITRANS has 9 e-commerce logistics lines

Advantages:

Concentrating large quantities of goods to destinations, reducing costs through economies of scale, therefore, the price is lower than commercial express, faster than postal parcels, and the packet loss rate is relatively low.

Disadvantages:

Compared with the postal parcel, the cost of freight is still a lot higher, and the scope of domestic collection is relatively limited, and the coverage area needs to be expanded.

 

Overseas warehouse

The so-called overseas warehousing service refers to the one-stop control and management service for warehousing, sorting, packaging and delivery of goods provided by the online foreign trade trading platform and logistics service provider independently or jointly for the seller at the sales target. The seller stores the goods in the local warehouse. When the buyer has the demand, he responds quickly and sorts, packs and delivers the goods in time. The entire process includes three parts: head-to-head transportation, warehouse management and local distribution.


Head-to-head transportation: Chinese merchants transport goods to overseas warehouses by sea, air, land or intermodal.

Warehousing management: Chinese merchants remotely operate overseas warehousing goods through logistics information systems to manage inventory in real time.

Local delivery: The overseas warehousing center delivers the goods to the customer via local post or courier based on the order information.


Advantages:

By using traditional foreign trade methods to take goods to warehouses, logistics costs can be reduced;

Equivalent to sales happening locally, providing flexible and reliable return and exchange programs, increasing the purchasing confidence of overseas customers;

The delivery cycle is shortened and the delivery speed is accelerated, which can reduce the cross-border logistics defect transaction rate;

Overseas warehouses can help sellers expand sales categories and break through the bottleneck of “big and heavy” development.

Disadvantages:

Not all products are suitable for use in overseas warehouses, it is best to sell items with fast inventory turnover, otherwise it is easy to press.

At the same time, the seller put forward higher requirements in the aspects of supply chain management, inventory control, and sales management.


Domestic express delivery

With the rising degree of cross-border e-commerce, domestic express delivery has also begun to accelerate the layout of international business. For example, EMS and SF have made efforts in cross-border logistics.

 

Thanks to the postal channel, EMS's international business is relatively mature and can reach more than 60 countries around the world. SF has also opened express delivery services to the United States, Australia, South Korea, Japan, Singapore, Malaysia, Thailand, Vietnam and other countries, and launched cross-border B2C services from mainland China to Russia.

Advantage:

The speed is faster, the cost is lower than the four international express delivery giants, and EMS has strong ability to clear customs in China.

Disadvantages:

Due to the lack of focus on cross-border business, relatively lack of experience, the ability to control the market needs to be improved, and the overseas markets covered are also limited.

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