What kind of logistics should I choose when opening a store on a cross-border e-commerce platform? What types are there?

Now more and more merchants are opening stores on cross-border e-commerce platforms. For merchants, when orders come in, the first thing to consider is to choose a suitable logistics method to send the goods abroad. What kind of logistics should I choose when I open a store on a cross-border e-commerce platform?

What kind of logistics should I choose when opening a store on a cross-border e-commerce platform?

1. Postal parcel mode

International postal parcels refer to the import and export of goods through the universal postal system, which are shipped in the form of personal parcels. Among international postal parcels, 70% of China's cross-border logistics are currently sent through postal parcels, of which China Post accounts for 50%.

Postal logistics includes China Post Small Parcel, China Post Large Parcel, Hong Kong Post Small Parcel, EMS, International e-Postal, Singapore Small Parcel, Swiss Post Small Parcel, etc. Among them, Postal Small Parcel, International e-Postal and EMS are the most commonly used.

The postal parcel network has a high coverage rate, wide logistics channels and relatively cheap prices, but its disadvantages are that the delivery speed is slow and the loss rate is high.

2. International Express Delivery Model

The four most common international express companies are DHL, TNT, FEDEX and UPS.

This logistics model relies on a unified information platform, and its main features are: timeliness is guaranteed, it is convenient for consumers to query real-time logistics information, and the package loss rate is low, but counterfeit brands, products containing batteries, and special products are basically not delivered. Of course, high-quality services are also accompanied by expensive prices.

(1) International air transport line refers to a dedicated route from domestic to a certain country. It is a door-to-door transportation service that includes delivery and tax. In addition to its high cost, it is a more suitable stocking method for quick sales and quick replenishment.

(2) Ocean freight is a low-cost, time-efficient mode of transport that is more suitable for large-volume cross-border logistics.

(3) The railway line is mainly aimed at cross-border trade between China and Europe. Its price is better than that of international air lines, but it is severely restricted by the transportation area.

3. Domestic express delivery model

Domestic express delivery mainly refers to EMS, SF Express and "Four Links and One Delivery". In terms of cross-border logistics, among the "Four Links and One Delivery", STO and YTO were established earlier, while ZTO, Huitong and Yunda have just started cross-border logistics business. SF Express's international business is more mature. It has opened express delivery services to the United States, Australia, South Korea, Japan, Singapore, Malaysia, Thailand, Vietnam and other countries. Express shipments to Asian countries can generally be delivered within 2-3 days.

Among domestic express delivery companies, EMS has the most complete international business. Relying on postal channels, EMS can directly reach more than 60 countries around the world. The cost is lower than that of the four major express delivery giants. The customs clearance capability in China is very strong. It takes 2-3 days to reach Asian countries and about 5-7 days to Europe and the United States.

4. Dedicated logistics model

Cross-border dedicated logistics is generally transported to foreign countries by air, and then the destination country’s customs clearance and delivery are carried out by cooperating local companies. It mainly concentrates large quantities of products to a certain country or region, reduces costs through economies of scale, and has a fast timeliness. It is more suitable for small and medium-sized cross-border sellers with weak risk resistance.

Advantages: High timeliness and cost-effectiveness in formulating distribution countries and regions, and providing logistics information throughout the process.

Disadvantages: The delivery countries are limited and the delivery range is limited.

Suitable for shipping products: centralized shipment of products from a certain country or region, FBA/overseas warehouse stocking.

5. Overseas warehousing model

The overseas warehouse model is that cross-border e-commerce sellers first prepare goods in the logistics warehouse of the destination country in advance, and then ship the goods directly to the customer from the overseas warehouse after the customer places an order on the seller's e-commerce website or third-party store. This can improve logistics efficiency and bring customers a high-quality logistics experience. However, sellers usually only choose hot-selling products for overseas warehouse preparation.

In general, the products suitable for "overseas warehouse" are:

(1) Products with large size and weight: Since these products are limited by the specifications of small packages and dedicated mail, and the cost of international express delivery is very expensive, using overseas warehouses will break through the product specification restrictions and reduce logistics costs.

(2) Products with high unit prices and gross profits: High-quality overseas warehouse service providers can control the breakage rate and lost item rate to a very low level, reducing the risks for sellers of high-value goods.

(3) High turnover rate of goods: This is what we often call best-selling products. For best-selling products, sellers can process orders more quickly through overseas warehouses and recover funds; for slow-moving products, they will not only occupy funds but also incur corresponding storage fees. Therefore, in comparison, goods with high turnover rates are more suitable for using overseas warehouses.

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