Cross-border logistics refers to the planning, implementation, and control management process of the effective flow and storage of physical goods and information with both sides of the customs border as endpoints. In the e-commerce environment, relying on advanced technologies such as the Internet, big data, informatization, and computers, it is a logistics activity in which goods flow from cross-border e-commerce enterprises to cross-border consumers across different countries or regions. It is not just simple goods transportation but also involves the coordinated operation of information flow and capital flow.
Determine the mode of transportation (such as sea freight, air freight, land freight, etc.), understand the import policies and regulations of the destination country (including tariffs, customs clearance requirements, product restrictions, etc.), and formulate a reasonable logistics plan. At the same time, package and mark the goods in accordance with international transportation standards and requirements to ensure that the goods are not damaged during long-distance transportation and are easy to identify.
Based on the order information, the seller picks the goods from the warehouse and packs them. In this step, it is necessary to ensure that the packaging is firm and the labels are clear, and prepare the documents required for import in the destination country (such as commercial invoices, packing lists, certificates of origin, etc.). Then, transport the goods to the international freight forwarder through domestic logistics.
Select an appropriate mode of transportation according to the nature, quantity, and delivery time requirements of the goods. Air freight is fast but costly, suitable for high-value and time-sensitive goods; sea freight has a large carrying capacity and low cost, suitable for large quantities and large-volume goods; land freight is more commonly used between adjacent countries. During the transportation process, it is necessary to communicate closely with the freight forwarder to ensure that the goods are safely and punctually delivered to the destination country.
After the goods arrive in the destination country, they need to go through customs clearance, which requires submitting necessary documents and paying tariffs and taxes. The seller or the freight forwarder should maintain communication with the local customs and be familiar with the import policies and regulations of the destination country to avoid the detention or penalty of goods due to illegal operations.
After the goods complete customs clearance, local logistics companies or courier companies in the destination country are responsible for delivering the goods to consumers. Ensure that the goods are safely and promptly delivered to consumers.
The seller provides comprehensive after-sales service to handle consumers' problems. In case of returns and exchanges, handle them according to relevant regulations and procedures to protect consumers' rights and interests.
It has a wide coverage, and can reach more than 230 countries and regions around the world. More than 70% of China's cross-border logistics parcels are transported through this mode. However, the slow logistics timeliness restricts its development.
- Advantages: Widely distributed globally, wide coverage, and relatively low price.
- Disadvantages: Relatively slow logistics speed.
Such as the four major international express companies UPS, FedEx, DHL, and TNT. Through self-built global networks, powerful IT systems, and localized services, they provide a good logistics experience for overseas users.
- Advantages: Relatively fast speed, moderate loss rate of parcels.
- Disadvantages: High price, large changes in tariffs, and restrictions on consigned items.
With the development of cross-border e-commerce, domestic express companies such as EMS, SF Express, and the "Four Links and One Delivery" (STO Express, YTO Express, ZTO Express, Best Express, and Yunda Express) have also launched international services. EMS has a mature international business relying on the postal channel and can directly reach more than 60 countries around the world; SF Express has opened express services to countries such as the United States and Australia.
- Advantages: Fast speed, low cost.
- Disadvantages: Lack of experience, insufficient market control ability, and limited overseas market coverage.
Transportation is carried out through a dedicated route, and the goods are delivered in the destination country by a cooperative company.
- Air Special Line: A dedicated air route from the domestic to a certain country, providing door-to-door service including delivery and tax payment. The cost is high, suitable for the fast-selling and quick-replenishment inventory mode.
- Sea Special Line: It has a large carrying capacity and the lowest cost, suitable for large-volume cross-border transportation. However, the transportation timeliness is long, ranging from 25 to 40 days.
- Railway Special Line: It is mainly for specific routes between China and Europe. The cost and timeliness are between air freight and sea freight. It is stable and safe, with few transfers and high time accuracy. However, it is limited by the transportation area and is suitable for large cargo transportation.
- Advantages: Low price, fast speed, low loss rate of parcels.
- Disadvantages: The freight cost is higher than that of traditional postal small parcels, and the domestic collection scope is relatively limited.
The seller first stocks the goods in advance in the logistics warehouses of the destination country. After the customer places an order, the goods are directly shipped from the overseas warehouse, which improves the logistics timeliness.
- Advantages: Stocking goods in advance transforms cross-border logistics into local logistics, greatly reducing the delivery time; there are fewer restrictions on the volume and weight of goods compared with traditional postal small parcels and other international express services; the return and exchange operation is convenient.
- Disadvantages: It is difficult to accurately estimate the quantity of pre-stocked goods, and it is not suitable for customized personalized goods.
There are many links in cross-border logistics, which takes a long time. It is difficult to obtain logistics information in a timely manner and understand the overseas operation situation, which is likely to lead to delayed plans and affect sales.
The freight for international returns is high, and the transportation time is long. There is a risk of goods loss during the return process, which affects the buyer's experience.
If the goods are lost during transportation or returned by the customs, the cross-border logistics cost of the seller will increase.
Understanding the common knowledge of cross-border logistics helps cross-border e-commerce practitioners to better select logistics modes, plan logistics processes, reduce costs and risks, improve customer satisfaction, and achieve better development in the cross-border e-commerce field.