Logistics costs suddenly increased by 20%, and sellers’ popular products were stranded

Logistics costs suddenly increased by 20%, and sellers’ popular products were stranded

As cross-border e-commerce has grown from a booming momentum to a gradual stabilization, the thorny issues that sellers face, in addition to operational management, include the instability of logistics costs.

 

Recently, some new sellers have had their products contain foamed goods, which has caused a sudden increase in logistics costs during delivery and almost delayed the listing of their products. But in fact, as many sellers know, when it comes to foamed goods, there are actually many measures that can be taken to reduce the first-leg logistics costs.

 

The measurement method of bulk goods is incorrect, and the seller's logistics costs increase suddenly

 

Recently, some new sellers have found that their logistics costs have increased for unknown reasons. The increase varies slightly, ranging from more than 10% to 20%. At first, these sellers thought that the service provider miscalculated the weight or mixed up the goods, but after checking and inspecting, they found that they had made a mistake in measuring the products, which almost delayed the shipment.

 

Afterwards, the seller asked the logistics company and learned that the reason for the sudden increase in costs was that the products it shipped contained bulky goods and had to be priced by volume. The data weighed by volume was greater than the data weighed by the seller himself, so the costs increased accordingly.

 

 

Some of these sellers said that their products were in hot sales, so in order not to delay listing, they did not consider other methods and just added money to ship out the products. A small number of them chose to ask their peers and wait for a better solution before shipping.

 

In fact, this is not the first time such an incident has occurred. In the first half of this year, some new sellers in the home furnishing category also encountered the same situation. Due to the large size of quilts, pillows and other home furnishing products, there is a difference in the cost valuation between sellers and logistics companies. One seller said : " Bubble products sometimes increase logistics costs by about 10%, and sometimes even more than 20%. "

 

For experienced sellers, the term "bulk goods" is not unfamiliar. Bubble goods refer to goods whose volume is greater than the actual weight, but different logistics service providers have different definitions of bulk goods. Common express delivery on the market is length * width * height divided by 5000, and special lines are length * width * height divided by 8000. If the data obtained is greater than the actual weight, it is defined as bulk goods.

 

Common products in our daily life include plastics, sponges, and some products with relatively large frames. According to regulations, the charges for bulk products must be calculated based on volume.

 

In this regard, some sellers and logistics companies believe: "It is normal for some newcomers to the industry not to understand it well. However, sellers of bulk goods will pay more attention to the early preparation and delivery than others. If you don't make a certain plan, the initial investment will be quite large." Some sellers also said that, as far as they are concerned, they did not have a good calculation plan for bulk and heavy goods when shipping, but they had plans more or less.

 

In addition, a seller said: "Generally speaking, if you want to ship this kind of goods, you still have to look at the general market price. If the seller's products are priced relatively high and have decent sales, then there is nothing to worry about if the shipping costs increase a little, after all, the income can offset it. On the other hand, if they are selling products with lower profits, then the cost of investment will naturally be higher."

 

 

In this case, for sellers who can find problems in time and have adjustment plans, they can reduce the corresponding costs to a certain extent. However, for sellers who say "products have low profits and high shipping costs", the products they sell sometimes become gifts, affecting sales performance.

 

In addition, for bulk products, the bulk ratios of various logistics service providers are different, and there will be different differences in charges. For this reason, sellers have taken a number of corresponding measures to reduce costs.

 

Bulk stock coefficient reaches 18,000? Sellers are relieved of pressure

 

At present, most sellers who sell bulky goods usually choose to combine bulky goods with heavy goods to reduce logistics costs, so as to maximize the use of limited space and not waste any resources. In addition, some sellers will choose to transport through different channels, such as sea and air transportation, to comprehensively control costs ......

 

However, since the sellers of bulk goods differ in the categories and weights of the goods they sell, the corresponding logistics services they choose also have different emphases.

 

At the same time, given that there are good and bad logistics providers on the market, sellers will be particularly cautious when selecting logistics providers, and will make a comprehensive comparison of the quotations and service scopes provided by the logistics providers.

 

According to the feedback from sellers, the issues that sellers are most concerned about are: the reputation of the logistics company, delivery time, price advantage, bulk factor and service level . After comprehensive comparison, sellers will finally decide on the partner. As far as the current industry situation is concerned, some old logistics companies are still the best choice for sellers. Among them, Jiayou International (Lotte South China) has established a good reputation in the industry with more than 20 years of industry experience.

 

Jiayou International (Lotte South China) was established in 1999. Since its inception, Jiayou International has always steadily promoted the construction of logistics elements, including self-operated charter flights on international trunk lines, domestic and international warehousing construction, optimization of international customs process efficiency, and diversified terminal delivery solutions, thus forming a full-link end-to-end logistics solution.

 

 

In order to help sellers save costs and improve service experience, the company recently launched a special Canadian bulk cargo line specifically for domestic sellers. It is understood that this special line is a dedicated small package logistics product that can be tracked door-to-door from China to Canada.

 

The first leg of the journey uses an international flight that flies directly to Vancouver/Toronto, and the final leg uses commercial customs clearance, Canadian domestic commercial express delivery services, and Canada Post's most popular "Expedited" final delivery service. The delivery range is throughout Canada (including post office boxes and postal 24-hour self-service parcel lockers).

 

An obvious advantage of this special line is that compared with other express delivery methods of 4500, 6000 and 9000, this special line is charged at a bubble ratio of 1/18000. The delivery time is 7-10 working days, and the delivery rate is 98.5%.

 

Take cargo A as an example. If the length, width and height of the cargo are 60, 20 and 15 respectively, the billing weight of the ordinary channel (60*20*15/6000) is 3KG, while the billing weight of the bubble-free channel is (60*20*15/18000) 1KG, which has a significant cost-effectiveness advantage. For sellers who transport super-large bubble goods, it can save a lot of costs, which meets the current actual needs.

 

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At the same time, its light and small parcel channel is also worthy of sellers' attention. When sellers match logistics services for low-value goods, they usually choose surface mail, but surface mail products have no track of successful delivery and a high rate of lost items, which is a major pain point. The light and small parcel channel launched by Jiayou this time not only controls the minimum operating fee at around 18 yuan, but also enables full-link traceability. For parcels under 150 grams, the bubble is not counted, the delivery time is 8-10 working days, and the successful delivery rate exceeds 95%.


logistics

Bubble goods

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