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How Can Cross-border Sellers Survive With The Rising Of Freight Rates?

How Can Cross-border Sellers Survive With The Rising Of Freight Rates?

2020-12-31

With freight rates rising, it is hard to find a warehouse. How can cross-border sellers survive?

Land, sea and air Transportation are all in trouble

Every year sellers experience a squeeze on resources during the year-end season, but logistics this year is tougher than ever. Shipping and air fares have been rising all the time, and as things stand, the high rates will last until after the Spring Festival. Since entering the peak season, land transport has also appeared serious congestion, the whole logistics serious delay.

As the epidemic in Europe becomes more and more serious, the number of people in the country is also becoming less and less. In addition, The Christmas holiday in Europe this year is in advance. As a result, the price of air transportation is rising, the sea transportation is empty, the railway is empty, and the land transportation is seriously congested.

International Shipping - Delivery becomes a problem

At the end of the year, the sellers had rolled up their sleeves to prepare for the end of the year, by the East wind of Christmas hard to make a fortune, the result did not expect finally tortured by logistics to doubt life.According to some sellers, Amazon's inventory volume has suddenly dropped so much in recent days that it will be out of stock for Christmas.In addition, there are sellers said: FBA the highest inventory level suddenly dropped a lot, some directly cut in half!

At the same time, some sellers cried: The quantity can be sent directly to zero, this is to let me earlier Chinese New Year?The sharp reduction in peak inventory levels has been accompanied by the cancellation of a large number of shipment plans.Finally the big promotion comes, the products sell out, but your warehouse is out of stock, and logistics can not make up the goods, so you can only watch yourself miss the annual big promotion, become a tearful machine without emotion.Compared with domestic e-commerce logistics, cross-border e-commerce has many differences, such as the selection of express delivery, export declaration, list into FBA warehouse and other procedures are relatively complex, so most sellers will choose to cooperate with freight forwarders. Nevertheless, the cross-border logistics cycle is still long.

Since this year's peak season, cross-border logistics and warehousing face challenges including: direct domestic distribution, economy and timeliness is not objective;The pressure increases sharply in all links of head transportation and sea transportation.Overseas warehouse, storage capacity is tight, a warehouse difficult to find;Send the end of the process, the time limit of the order is difficult to guarantee.Timeliness is not guaranteed, and the proportion of logistics expenses is also increasing. If the logistics cost of cross-border e-commerce continues to rise, the profit space of sellers will undoubtedly be further compressed.

In such volatile industry changes, resilience will become the fundamental ability of cross-border export sellers.Among these resilience capabilities, how to deal with the impact of logistics uncertainty on business is obviously a key one.

How to avoid logistics risk

2020 has been a turbulent year for cross-border workers.How can sellers in Europe, America and Latin America hedge their risks in the face of a double crisis?

For now, price is more important than price. So what choices should cross-border sellers make in terms of logistics channels? In this regard, CNS suggest that sellers should be prepared for the long-term coexistence with rising cross-border logistics costs.At present, all the warehouses in the United States are in an unprecedented situation of tension. From the perspective of long-term layout planning, the seller should arrange shipping as soon as possible, stabilize the time limit and prolong the stocking cycle.In addition, sellers should not completely rely on Amazon FBA, so they might as well try an agency delivery service overseas, with multi-channel layout.

For sellers of Latin America, the outbreak, the local import customs clearance jams and the local public security problem, in this case, CNS launched series of measures: the present situation of cross-border sellers problems on the one hand, worked to deal with cross-border electrical goods, first guaranteed cross-border electricity container, after arrival immediately arrange clearance, and actively coordinate the trailer will arrange inland transport, overseas warehouse priority arrange cross-border electricity cargo tally, ensure that sailed away from home to the final receipt cycle for 31 days;On the other hand, faced with the deteriorating security situation in Mexico, in order to ensure the smooth entry of cross-border e-commerce goods into Amazon'S FBA warehouse, armed escort and insurance arrangement are adopted for both inland transshipment and overseas warehouse to FBA warehouse, so as to provide customers with carefree services.


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