In the cross-border e-commerce industry, there are four common shipping options. What are the advantages and disadvantages of each option? Why is international shipping so expensive? How to choose the shipping option that is more suitable for your e-commerce business? After reading this post, you can find the most appropriate e-commerce international shipping options for your business.
1. Small Packet
Small packet is internationally defined as mails less than 2 kg. This service is usually provided by a state-owned shipping enterprise or a country's government department. For example, China Post, Hongkong Post, and India Post offer this type of postal service. Advantages: The postal network covers the whole world, which is more comprehensive than any shipping carrier. If you need to ship a package to a remote area, this shipping method is more suitable. Disadvantages: The weight of the package is limited, and only parcels under 2KG can be sent. Besides, the delivery speed is slower than most international shipping companies. The package loss rate is high, and it is impossible to determine whether the buyer received it. In another world, no package tracking service is provided.
2. International Carrier
There are many international carriers. If you don't know which one to choose, working with big global shipping companies like DHL, TNT, FEDEX, and UPS can help you reduce the risk and put your mind in peace. Advantages: International shipping companies are well-known for having fast delivery speed, good customer service, and low package loss rates. Especially it is convenient for international sellers to send packages to developed countries such as Germany and the US. You can choose the shipping services according to each company's delivery time, value-added services, and volumes, such as express, standard, and economy service. Disadvantages: Shipping services provided by these international private enterprises are more expensive than the small packet service. Besides, business customers need to provide customs clearance paperwork and pay import duties according to the laws and regulations of the destination country.
3. Dedicated Line Shipping
Cross-border dedicated line shipping is a shipping service that generally transports shipments to the destination country by air after the shipments are consolidated. The shipping line is similar to the shuttle bus. The route and stops are fixed. When the shipment arrives at the destination, the local agent will complete customs clearance and deliver the shipment to the customers. The shipping rate is generally lower than that of the international express service. In terms of timeliness, dedicated line shipping is slightly slower than international express service but faster than small packet service. The most common dedicated shipping services are the dedicated line for developed countries in North America, Europe, and Oceania. Many shipping companies have launched dedicated line shipping services for sending shipments to the Middle East, South America, and South Africa. Advantages: Dedicated line shipping service reduces shipping prices through economies of scale. The delivery speed is faster than the small packet service, and the shipping rate is lower than that of the international express service. Most importantly, the package loss rate is low. Disadvantages: The schedule of dedicated line shipping is flexible. It can help them reduce shipping costs and increase profits. Some shipping companies will not set a shipping schedule for customers because they will arrange the shipping after they reach a certain number.
4. Overseas Warehousing
Overseas warehousing service refers to a one-stop service for cross-border sellers to store, sort, pack, and deliver goods at the sales destination. To be precise, overseas warehousing should include three parts: head haul transportation, warehouse management, and local distribution. Advantages: Using the traditional cross-border trading method to deliver goods to the warehouse instead of the customer can reduce logistics costs. Since the sales occur in the destination country, sellers can provide a flexible and reliable return and exchange service, convincing the target customers to buy from you. The delivery time is shortened, and the delivery speed is accelerated, reducing the cross-border logistics defects. In addition, overseas warehousing can help sellers expand their sales categories. Disadvantages: Oversea warehousing is not suitable for all products. It is much ideal for best-selling items with fast inventory turnover. Otherwise, the product will stay at the warehouse for an extended period. You have to pay an extra storage fee. At the same time, overseas warehouse management has a higher requirement for sellers in supply chain management, inventory control, and dynamic sales management.
Conclusion
The above are the advantages and disadvantages of the mainstream cross-border e-commerce shipping options. If cross-border sellers choose the e-commerce international shipping options according to the pros and cons of the services, they will find the one that suits them.
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