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Five modes of cross-border e-commerce and international logistics
Publication time:2021-08-30     Reading times:    

Postal parcel mode

According to incomplete statistics, 70% of the packages exported by China's cross-border e-commerce are delivered through the postal system. China Post accounts for about 50%. Therefore, at present, cross-border e-commerce logistics still focuses on the delivery channel of postal services. The postal network basically covers the whole world, which is wider than other logistics channels. This is also mainly due to the Universal Postal Union and the Kahala postal Organization (KPG).

However, although there are many postal channels, they are also very miscellaneous. When selecting postal parcels for shipment, attention must be paid to the port of shipment, timeliness, stability, etc. For example, packages sent from China to the United States through e-mail treasure generally take 15 days to arrive.

International express mode

International express mode refers to the four major commercial express giants DHL, TNT, ups and FedEx. Through their own global network, these international express carriers use powerful IT systems and localization services all over the world to bring excellent logistics experience to overseas users of online shopping Chinese products.

For example, a package sent to the United States through ups can arrive within 48 hours at the fastest. However, quality service is often accompanied by expensive prices. Generally, Chinese merchants only use international commercial express to deliver goods when customers have strong timeliness requirements.

Domestic express mode

Domestic express mainly refers to EMS, SF and "four connections and one arrival". In terms of cross-border logistics, Shentong and Yuantong have an earlier layout in the "four links and one reach", but they have only made efforts to expand recently. For example, Shentong of the United States went online only in March 2014, and Yuantong cooperated with CJ Korea express only in April 2014. Zhongtong, Huitong and Yunda have just started cross-border logistics business.

SF's international business should be more mature. At present, it has opened express services to the United States, Australia, South Korea, Japan, Singapore, Malaysia, Thailand, Vietnam and other countries. Express mails sent to Asian countries can generally be delivered in 2-3 days.

In domestic express, EMS's international business is the most perfect. Relying on postal channels, EMS can reach more than 60 countries around the world, and the cost is lower than that of the four express giants. In addition, China has strong customs clearance capacity. It takes 2-3 days to reach Asian countries and about 5-7 days to Europe and the United States.

Special line logistics mode

Cross border special line logistics is generally transported abroad by air charter, and then delivered to the destination country through cooperative companies. The advantage of special line logistics is that it can concentrate large quantities of goods to a specific country or region, and reduce costs through scale effect. Therefore, its price is generally lower than that of commercial express.

In terms of timeliness, special line logistics is slightly slower than commercial express, but much faster than postal parcels. The most common special line logistics products in the market are American special line, European and American special line, Australian special line, Russian special line, etc. Many logistics companies have also launched special lines for the Middle East, South America and South Africa.

Overseas storage mode

Overseas warehousing service refers to the one-stop control and management service for the seller to warehouse, sort, package and deliver goods at the sales destination. To be exact, overseas warehousing should include head-on transportation, warehousing management and local distribution. What are the three parts?

Head-on transportation, that is, Chinese businesses transport goods to overseas warehouses by sea, air, land or intermodal transportation.

Warehouse management: Chinese merchants remotely operate overseas warehouse goods and manage inventory in real time through logistics information system.

Local distribution: according to the order information, the overseas storage center distributes the goods to customers through local post or express.

The advantage of choosing this kind of mode is that warehousing overseas is not only conducive to the allocation of overseas market prices, but also reduce logistics costs. With its own overseas warehouse, it can deliver goods from the buyer's country, so as to shorten the order cycle, improve the customer experience and improve the repeat purchase rate. Combined with the local logistics characteristics of foreign warehouses, it can ensure that the goods can reach the end buyers safely, accurately and in time.

However, although this overseas warehousing mode solves the problems of high cost and long distribution cycle in the era of small bags, it is worth considering that not all cross-border e-commerce sellers are suitable for overseas warehousing. It's best to use the best selling items with fast inventory turnover, which is suitable for this mode. Otherwise, it's very easy to press the goods. At the same time, this method puts forward higher requirements for sellers in supply chain management, inventory control, moving sales management and so on.

The above five modes basically cover the current logistics modes and characteristics of cross-border e-commerce. But there are also some "alternatives". For example, although Belgium post belongs to the postal parcel model, it is positioned as a high-quality seller and provides far better products and services than other postal products.

Finally, give some suggestions to cross-border e-commerce sellers: first, select the appropriate logistics mode according to the characteristics of the products sold (size, safety, customs clearance convenience, etc.). For example, large products (such as furniture) are not suitable for the postal parcel channel, but more suitable for the overseas warehouse mode.

 
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