How to save on cross-boarder logistics costs?


Starting from 2018, cross-border e-commerce sellers ushered in a wave that cross-border logistics price increases. FedEx first announced that it will increase freight rates from January 1, 2018, followed by DHL, UPS, USPS, France Post and Dutch Post. Multi-national postal and express delivery companies have also raised freight rates correspondingly.


As we all know, logistics freight is an important expenditure for cross-border e-commerce practitioners when calculating operating costs, so from the choice of logistics channels, the calculation of freight, to the bagging and packaging of products--each node plays a key part to reduce the cost of freight.


How do sellers reduce logistics costs? Let’s take a look at what senior industry sellers do.

Negotiate with the cooperative logistics agency to obtain a 9-9.5 fold shipping discount


Sellers in different regions, different platforms, different volumes and even different categories have different shipping costs per month.

In this regard, cross-border e-commerce sellers from Yiwu City also admitted that in view of the low value of their own goods and light weight, although the freight rate of each parcel is relatively fixed, in general, the freight will be adapted to the market according to the fixed data, generating 25 -35% of the price floats. For some sellers with large sales volume, it is a good way to cooperate with postal, freight forwarding or third-party logistics partners to negotiate freight discounts. Some foreign post offices even offer discounts for large-scale cross-border e-commerce sellers. The basic discount point is 9.5 fold, which is equivalent to 5 yuan for the seller's 100-yuan freight cost.

Of course, the practice of smashing prices with logistics providers or post offices will be ineffective during peak seasons or peak logistics. If the supply exceeds demand, the cost of cross-border freight will increase.

Improve product packaging--two thousand or more packaging per day will save 180,000 yuan freight


Cross-border e-commerce sellers indicate that there are currently three types of logistics methods for their shipments: FBA, overseas warehouses and ZhongCang direct shipments. Since the overseas warehouse is basically serving the FBA in this case, the straight hair in the warehouse has become the biggest factor affecting the seller's freight cost. In the form of small packets, usually the cost of a package of 1000 grams is about 80 yuan, and the cost per gram is about 0.08 yuan.

Most of the sellers only calculate the cost according to the weight provided by the supplier. In fact, the weight given to us by the freighter also includes the weight of the package and the cost of shipping. The small package is about 30 grams. Some oversized packages may have 50 grams, so the cost of shipping a small package may increase by 2.4-4 yuan at a cost of 0.08 yuan per gram. “ Many sellers in Shenzhen can send thousands of bags a day. We sell on average two thousand small bags a day. In this way, the cost increases by 4,800-8,000 yuan per day, and 140,000 to 240,000 a month, or even more”, said a cross-border e-commerce seller.


Whether FBA is divided or not is the key to cost savings


In addition to the above-mentioned details of the package description, in view of the fact that most sellers can not complete the large-scale distribution of goods, single, multi-batch, small-lot delivery mode makes sellers often face the need to separate the warehouse when sending FBA warehouse.

For example, suppose a seller selling iPad sets needs to send 500 FBAs. It is recommended that sellers fill in the number of shipments instead of filling in 500, but convert them into 5 or 10 boxes. In this case, multiple products in a box can avoid the generation of the warehouse to the greatest extent, and the logistics delivery fee that the seller needs to pay will also decrease a lot.

Although the distribution of FBA warehouses is not how the seller wants to divide, Amazon will allocate different warehouses according to the sales volume and warehouse capacity of overseas local cities. After actually borrowing this method, it can basically help. The seller saves 30%-50% of the logistics cost.

Amazon FBA professional freight forwarding also said that under the premise of the same 500 kilograms of goods sent to Los Angeles, the logistics cost to the same warehouse is 26 yuan per kilogram, the logistics cost of the warehouse to different warehouses is 28 yuan per kilogram, the same For the same destination, the logistics cost can save 1,000 yuan.


#saving #freight #internationallogistics

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