A freight forwarder can earn as much as a house in Shenzhen every month! Running away at a low price, timeliness is hard to guarantee... How can cross-border e-commerce get out of the logistics dilemma?

How can cross-border logistics be better developed?

In recent years, cross-border e-commerce exports have entered a period of rapid development. As an indispensable link in the entire export chain, logistics has grown at an astonishing rate, and topics related to cross-border logistics have been hotly debated. A popular saying in the market is:

Shipping companies engaged in cross-border logistics have made a lot of money, and the ability of related practitioners to attract money has also increased greatly. The situation of earning a house in Shenzhen by doing nothing has also really existed this year ...

Is cross-border logistics a very profitable business? Regardless of whether it makes money or not, there are indeed many chaos in the logistics circle. In recent years, many cross-border logistics companies have been rumored to have collected goods at low prices and then run away, and then changed their vests to continue operating ... This not only damages the rights and interests of cross-border sellers, but also has a negative impact on the overall reputation of the logistics industry. All kinds of chaos force cross-border practitioners to think deeply: How can cross-border logistics better serve the seller group?

In response to various hotly debated topics in the logistics circle, Dai Bin, vice president of 4PX DP and general manager of the Class B business unit , gave his own views.

Is there anyone who can buy a house in Shenzhen without doing anything?

It is reported that Mr. Dai has been engaged in the cross-border B2B and cross-border B2C industries for nearly 20 years, serving nearly 5,000 companies of various types. He is proficient in overseas marketing strategies and excels in cross-border supply chain operation management.

When he first joined cross-border logistics, Mr. Dai was a cross-border platform operator. He had been involved in both B to B and B to C operations of cross-border platforms . As his understanding of the industry deepened, Mr. Dai's identity gradually changed to a logistics practitioner.

Mr. Dai has his own considerations for the transformation from a cross-border platform operator to a cross-border logistics practitioner. " Logistics is more about service. It can go deep into the essence of transactions . Moreover, as the proportion of international logistics in the entire cross-border transaction increases, I think logistics is an indispensable and very important part. Therefore, the change in the identity of the cross-border e-commerce industry is actually a change in the cognition and view of the industry. "

Nowadays, with the increasing cost of cross-border logistics, the profits of cross-border sellers have also been "eaten away". Many sellers have directly called it difficult to survive. In sharp contrast to the situation of the sellers, it is generally believed in the market that logistics practitioners are making a lot of money, and sayings such as "freight forwarders can earn as much as a house in Shenzhen without doing anything" are prevalent.

Is the cross-border logistics industry really that profitable? In Dai's opinion, the cross-border logistics industry is like a besieged city. People outside want to get in, and people inside want to get out. In the past two years, many logistics service providers have indeed made a lot of money. There are also cases where they earn enough to buy a house in Shenzhen in a month. When information is asymmetric and resources are scarce, in the entire cross-border logistics chain, not only the top-level agents, but in fact every link will have people who "get rich overnight."

In addition to the fact that the industry itself is in a bonus period, the logistics practitioners are making money, and it is not ruled out that the practitioners take advantage of information asymmetry to make money during the epidemic. However, with the advent of the post-epidemic era, on the one hand, all links of logistics are more transparent, and on the other hand, logistics resources are more open. The development of the cross-border logistics industry has also become more mature and rational. At this time, if cross-border logistics practitioners want to achieve long-term development, everything must return to the business and service itself. The ultimate goal is to provide logistics services in a down-to -earth manner .

Logistics costs remain high, what are the ways to reduce costs and increase efficiency?

Mr. Dai is good at cross-border supply chain operation management. During the interview with Ennet, Mr. Dai also gave his own insights on how to do a good job in cross-border supply chain operation management.

Mr. Dai believes that the entire cross-border supply chain operation and management should be composed of three parts : cross-border logistics, cross-border supply chain warehousing and cross-border supply chain finance . The core of cross-border supply chain management : on the one hand, it is logistics; on the second hand, it is product selection; and on the third hand, it is tail goods or inventory handling . If cross-border practitioners can figure out these issues , they will benefit greatly.

Mr. Dai concluded that with the evolution and innovation of cross-border consumption, the needs of cross-border buyers and sellers have also leaped from the original basic services to more comprehensive full-link intelligent services, which will bring new opportunities to a large number of companies such as 4PX that can provide comprehensive cross-border supply chain solutions. It is reported that Shenzhen 4PX Express Co., Ltd. was established in 2004, focusing on the development of cross-border e-commerce logistics, with IT technology and big data as the core driving force, providing innovative and reliable logistics supply chain services through the global warehouse and distribution network and terminal delivery network, and has now developed into a leading company in the field of cross-border e-commerce logistics.

In recent years, cross-border logistics costs have remained high. How to reduce costs and increase efficiency has become a common problem for export sellers. From the perspective of cross-border sellers, Mr. Dai also gave three suggestions:

1. First of all, choice is very important . Whether it is small package, FBA, overseas warehouse stocking or domestic drop shipping, cross-border sellers need to choose the appropriate logistics method according to their actual situation .

2. The second thing is to choose a stable service provider. Only by choosing a stable service provider can the price be relatively stable, the timeliness be guaranteed, and the cost be optimal.

3. Understand the entire logistics chain to make logistics operations more transparent. Specifically, sellers should know what links the entire cross-border logistics chain includes, so as to know what kind of services they can get from each link. It is worth noting that being familiar with the entire logistics chain operation is not an easy task, and sellers need to spend time to accumulate capabilities.

Regarding the question of how to choose a better logistics service provider, Mr. Dai said in detail that price determines service, and sellers cannot blindly demand low prices. It is reported that during the epidemic, some unscrupulous practitioners in the logistics circle used low prices to disrupt the market in order to attract customers. The air delivery price was as low as the sea delivery price . With such a low price, the logistics service will definitely not be good. This situation also reflects the current situation of the logistics group itself, which is mixed. Therefore, if cross-border sellers want to find high-quality logistics service providers, they cannot only consider the price, but also the comprehensive service capabilities of the logistics service providers . Only by respecting the service can they have a good logistics experience.

"At the same time, the cross-border logistics industry needs to develop better to better serve the seller group. This requires that all cross-border logistics chains be more transparent , and cross-border logistics practitioners must adhere to their original intentions while refining operations . " Mr. Dai said that the entire cross-border logistics industry is entering the stage of technological logistics and capital logistics. If logistics service providers only rely on information asymmetry and earning price differences to make money, it is definitely not a long-term solution.

If you have more cross-border logistics doubts to be resolved, and want to talk to Mr. Dai face to face, you can come to the Yien Zhengzhou Conference. On December 13, at the 2021 First Central China Cross-border E-commerce Seller Brand Overseas Summit hosted by Yien.com, Dai Bin , Vice President of 4PX and General Manager of Class B Business Unit, will bring a wonderful sharing on the theme of " New Opportunities for Cross-border Logistics in the Post-epidemic Era ". You can scan the QR code below to register for this conference and go to the scene to learn and communicate.

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