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What is cross-border e-commerce logistics? What are its main modes?

September 29,2022

The development of cross-border e-commerce logistics and cross-border e-commerce development are mutual influence, the development of cross-border e-commerce promotes the growth of cross-border logistics industry. The development of cross-border e-commerce is the coordinated development of logistics, information flow and capital flow. As an important link, the development of cross-border e-commerce logistics affects the development of the whole cross-border e-commerce.

First of all, let's understand, what is cross-border e-commerce logistics?
Cross-border e-commerce includes online information flow, e-commerce and capital flow and offline logistics, the first three of which are based on the Internet operation, only cross-border e-commerce logistics must have offline physical environment to complete. In fact, logistics is no stranger to most people, the difference between cross-border e-commerce logistics and ordinary logistics is only geographical differences. Cross-border e-commerce logistics refers to cross-border e-commerce sellers transporting goods from their home countries to another country or region by land, air or sea (different customs).

What are the main modes of cross-border e-commerce logistics?
The characteristics of cross-border e-commerce are small quantity, many batches, unstable orders and so on, so most of the merchants engaged in cross-border e-commerce adopt the following three logistics modes: traditional express package mode, centralized delivery mode, overseas storage mode.

1. Traditional Express Package Mode

Traditional express package is postal package, also known as postal package, postal package is the most important logistics mode of cross-border e-commerce logistics in China at present, its characteristics are wide coverage, which is also the most suitable logistics mode for cross-border e-commerce. Postal package covers more than 230 countries and regions around the world, almost no matter which corner of the world can deliver goods. According to statistics, more than 70% of China's cross-border logistics packages are shipped through the traditional express package mode. But postal parcels are increasingly unable to meet the development of cross-border e-commerce, because its logistics is too slow, which also seriously restricts its development.

2. centralized delivery mode

The centralized delivery mode is also the special line logistics mode, which generally sends the packages of many buyers in the same area to the destination country or region through the air line, and then distributes them through the local cooperative company or the logistics branch. Because of the scale effect of its centralized package, but also mostly by air, its logistics limitation and transportation cost will be higher than the postal package than the international express.

3. International Express Mode

International express mode is the fastest time-limited, the highest cost of transport. Its biggest advantage is service and excellent customer experience, but because of its high cost unless the buyer specifically requires time or transport security, usually sellers do not choose the international express mode to send goods. so the international express mode accounts for a relatively small share in the cross-border e-commerce market.

4. overseas warehouse model

The overseas warehouse mode is that the cross-border e-commerce seller first prepares the goods in advance to the logistics warehouse of the destination country, after the customer orders in the seller e-commerce website or the third party store, the goods are shipped directly from the overseas warehouse to the customer. This can improve the timeliness of logistics to customers to bring quality logistics experience. But sellers usually choose only hot-selling items for overseas stock preparation.