There are many cross-border risks waiting to explode!
For many cross-border people, 2023 is indeed a difficult year, which is not only reflected in the sales side, but also in the service side. The worse the environment is, the more concentrated the thunderstorm incidents will appear, or in other words, in the downward economic environment, some of the "sexy operations" that already existed in the industry have been copied by more people.
The recent "leakage account" incident that shocked the cross-border circle has not yet subsided. With UPS and other companies continuing to conduct strict inspections, many leakage accounts have been closed and more sellers have been implicated.
Before one crisis subsides, another one is about to rise! Industry insiders predict that there will be more "explosions" in the logistics chain in the future ...
Follow-up of the leaked account: About 50% of transit goods were affected, and a Chinese woman was arrested for suspected forgery of mailing slips
Recently, UPS has begun to crack down on its accounts that have lost money, and the United States Postal Service has followed suit, taking a number of severe crackdown actions, including "inspecting cargo during outreach visits to postal office terminals and warehouses", "closing e-commerce accounts that sell false shipping labels", and "confiscating and processing packages with false shipping labels".
The latest news shows that a 50-year-old Chinese woman named Chen was arrested on May 23 for allegedly making fake postal mailing forms. It is understood that Chen and his employees delivered more than 9 million mail parcels containing fake postage in half a year, causing the U.S. Postal Service to lose $60 million .
In response to a series of policies issued by express delivery companies to strictly investigate the accounts of water leakage, DHLink recently stated that for the dedicated US line channel shipped through DHLink online, logistics companies must upload the actual USPS last-mile order number through the interface within three days after leaving the warehouse, and the receiving address must be consistent with the original order number. In addition, all goods shipped after May 1, 2023 (inclusive) will be identified only based on the USPS official website track. If there is no track record on the official website, it will be considered a false waybill.
A large number of overseas warehouse companies have witnessed this wave of iron-fisted rectification. According to people familiar with the matter, UPS alone has recently been strictly checking all overseas warehouses in the United States , and almost every batch of goods shipped from overseas warehouses must be inspected .
Usually, a UPS account is bound to one or several overseas warehouses. According to the agreement, the staff usually only pick up the goods at these designated warehouses. Accounts that are bound to dozens of warehouses at once are likely to have problems, and they are also the focus of inspection. If UPS finds that a certain account and warehouse do not match during the pickup process, after verification, the overseas warehouse will be blacklisted and classified as non-credit by the UPS system. UPS will no longer arrange pickup for warehouses that have been closed .
If the goods are already in the UPS warehouse , you have to pay a fine if you want to get them back, otherwise the goods will be confiscated. At present, it is very unlikely that these bad freight forwarders will pay the fines, so in the end the seller may face a situation where both money and goods are lost. Some sellers may just pay for the lesson, while some sellers will be seriously damaged.
According to industry insiders, more than 50% of US overseas warehouse companies are involved in fraudulent account activities, and Amazon cargo transit companies are the hardest hit . This number is not small, and it also indirectly shows that a large number of sellers' goods are facing a crisis.
There are still many risks to be solved in cross-border transactions
Thunderstorms happen every year, and this year there are especially many! After the account leak incident, what other logistics operations will be "settled"?
There is a high probability that "dangerous goods become ordinary goods" will also be regulated . Many pure electric products are classified as dangerous goods, but some logistics companies send them as ordinary goods in order to save the dangerous goods surcharge.
Industry insiders revealed, "Take FedEx and UPS as examples. The standard for dangerous goods surcharges is about US$46 per package. Some peers can directly save a lot of money by concealing the facts, which is an abnormal competition method. In the process of collecting sellers' goods, even charging a lower price can still make higher profits. UPS and other express delivery companies should have noticed this phenomenon. Once there is enough evidence, another batch of overseas warehouse companies will definitely be cleared out."
The full container direct delivery business also has hidden risks. Amazon recently updated several contents such as "the FBA number/PO number in each cabinet can only be used once, otherwise it will cause the FBA number/PO number to become invalid and unable to make reservations". After the new Amazon delivery regulations came out, the way for card delivery companies to make money by reducing costs through full container direct delivery was also blocked, but a large number of freight forwarders are still accepting full container direct delivery goods at low prices. When they arrive in the United States, they will incur other expenses such as unpacking or renting containers, which will definitely not be covered. The subsequent trend is obvious. Freight forwarders will raise prices or sell part of the seller's goods to make money.
"Overseas warehouse freight forwarders stealing sellers' goods" is also a big logistics scandal this year, but this phenomenon has not disappeared due to exposure. Instead, it is still rampant, and there will be more and more related scandals in the future.
According to a recent major cargo theft case announced by the California Highway Patrol (CHP), dozens of people were arrested and the stolen goods were worth millions of dollars . Some unscrupulous overseas warehouses even took advantage of the situation by using the name of the account to take advantage of the situation, falsely claiming that the goods had been detained by UPS, but actually wanted to steal and sell the seller's goods .
A data shows that more than 900 cases of cargo theft and fraud occurred in the first four months of 2023 , a year-on-year surge, of which Amazon packages accounted for as much as 62%.
"There are still many similar news stories that have not been exposed, and there are still many non-compliant operations that have not been rectified. The waters of cross-border logistics are too complicated."
One of the daily tasks of Amazon operations: scolding the freight forwarder
Recently, a picture has been widely circulated, showing that the daily work of the operation is: scolding the development (poor product selection), scolding the suppliers (slow delivery), scolding the platform (high advertising fees), scolding the competitors (philanthropists), scolding the freight forwarders (unprofessional), scolding the warehouses (wrong labels) ...
It can be found that freight forwarders are prominently listed. Freight forwarders are originally responsible for helping sellers solve problems, and all this is based on the premise that the freight forwarder provides excellent services. If a seller encounters an unreliable freight forwarder, his heart must be broken, and he has to fight wits and courage with them almost every day.
However, sellers cannot cut ties with freight forwarders. For example, overseas warehouse services are suitable for hot-selling products with large volume and weight or products that have already formed a certain sales scale. There are good and bad overseas warehouse companies on the market. How can sellers choose a reliable overseas warehouse?
SLM-Warehousing (hereinafter referred to as SLMW) is the overseas warehouse business of SLM, focusing on large-item drop shipping for more than 7 years. The company has comprehensive indicators for the assessment of listed companies. Its current customers include the top furniture sellers in East China, the top listed companies in South China, and the top listed companies in Central China. It has many years of overseas warehouse experience and a good reputation.
In terms of cooperating logistics providers, SLMW signs contracts directly with FedEx and UPS. The accounts are all self-registered accounts and customers' own accounts. Sellers do not have to worry about the risk of goods being detained due to account leakage problems .
At a time when the US overseas warehouse market is currently sluggish, many warehouses are busy with subletting and transferring, while SLMW's overseas warehouse business is still in a stage of rapid development. Currently, the US warehouse has opened a new 100,000 square feet warehouse in Los Angeles, which has been put into use. As of now, SLMW already has a 250,000 square feet warehouse in Los Angeles.
Overall, SLMW has established warehouses with more than 1,000,000 square feet in five cities in the United States, focusing on setting up warehousing and distribution centers in multiple cities to implement the principle of nearby delivery to ensure that end consumers receive packages as quickly as possible and improve consumer satisfaction.
To ensure accurate and error-free cargo operations, SLMW also uses a comprehensive warehouse management system (WMS), standardized operating procedures, and a multi-post self-inspection mechanism to reduce the error rate. The current contract error rate is 0.1%, and the warehouse error rate is 0.05%, which is lower than the market error rate, and the daily fulfillment rate and SFP current execution rate have reached 100%. Considering multiple factors including experience, reputation, cooperative logistics providers, warehousing scale and warehousing management system, SLMW is undoubtedly the first choice for sellers when choosing overseas warehouses.
Scan the QR code below or click the link https://www.ennews.com/slm to experience the safety, efficiency and peace of mind of SLMW!
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