Why is cross-border logistics freight so high?

At present, the logistics cost of cross-border e-commerce accounts for 20-30% of the total transaction amount, and the overall logistics cost is relatively high. In fact, compared with the logistics cost rate of the domestic express industry (generally accounting for less than 5% of the customer unit price), the logistics cost of cross-border e-commerce accounts for a much larger proportion of the total cost of cross-border e-commerce.

The main reasons for this are as follows:

1. Many links and complicated process

Both direct mail and overseas warehouse modes involve the first time in China, including: picking up goods by merchants or logistics providers; Warehousing, inspection, classification, labeling, booking and packing of domestic warehouses; Domestic customs declaration; And deliver the goods to the destination country by sea or air.

In direct mail mode, local logistics providers or international logistics companies undertake direct mail mode, and then carry out warehousing, inspection, shelves and storage in the form of back-end warehouses in overseas warehouses. After the customer orders, the warehouse carries out distribution, and then the local logistics company takes over. At the same time, overseas warehouse can also provide return and exchange, customer service and other value-added services.

Why is cross-border logistics freight so high

2. Easy to be affected by overseas customs and tax policies

No matter direct mail or overseas warehouse, cross-border goods must go through foreign customs clearance procedures and pay relevant taxes in accordance with the provisions before they can be legally sold overseas. Cross-border e-commerce logistics system directly faces regulatory and legal risks from abroad, and will also be affected by changes in international political and economic situation. For example, the delayed VAT system in the new tax law implemented after the UK’s exit from the EU will directly affect the related logistics enterprises, such as freight forwarders or customs clearance banks, which bear the joint and several liability of goods transfer.

3. Transportation subjects and forms are diverse, and there is a lack of effective resource integration throughout the whole chain

The main bodies of transportation and direct mail mode may involve postal companies, international express companies, freight forwarders or domestic express companies with cross-border logistics business, airlines or shipping companies, commercial customs clearance companies and local express companies in exporting countries. Compared with direct mail mode, overseas warehouse mode is more third-party overseas warehouse service providers or self-opened. The subjects and processes of cross-border e-commerce logistics are complex and diverse, and it is difficult to integrate resources. There is a lack of effective resource integrators running upstream and downstream to provide end-to-end cross-border e-commerce logistics services for customers.

Leave a Comment

Shopping Cart