What are the logistics models for cross-border e-commerce? Introduction to Cross border E-commerce Logistics Models

In cross-border e-commerce, logistics has always been a top priority, often determining the quality of products and services, and having a significant impact on costs.

Logistics has always been a top priority in cross-border e-commerce, as it often determines the quality of products and services and has a significant impact on costs. Today, the editor will talk about what cross-border e-commerce logistics models are? Let's take a look together below.

1、 Postal express delivery mode:

The postal network basically covers the whole world, which is wider than any other logistics channel. This is mainly due to the Universal Postal Union and the Kahala Postal Organization (KPG). The Universal Postal Union is a specialized agency under the United Nations dedicated to international postal affairs, which improves international postal services and develops international cooperation in the field of postal services through various conventions and regulations.

Due to the large number of members and uneven development of postal systems among member countries, it is difficult for the Universal Postal Union to promote deep postal cooperation among member countries. So in 2002, postal departments from six countries and regions with relatively developed postal systems (China, the United States, Japan, Australia, South Korea, and Hong Kong) held a Postal CEO Summit in the United States and established the Kahala Postal Organization. Later, Spain and the United Kingdom also joined the organization.

The Kahala organization requires all member countries to meet a 98% quality standard for delivery deadlines. If the goods cannot be delivered to the recipient on the specified date, the operator responsible for delivery shall compensate the customer at 100% of the price of the goods. These strict requirements have prompted member states to deepen cooperation and strive to improve service levels.

For example, postal packages sent from China to the United States usually arrive within 15 days. According to incomplete statistics, 70% of cross-border e-commerce packages exported by China are delivered through the postal system, with China Post accounting for about 50%. Other postal services used by Chinese sellers include Hong Kong Post, Singapore Post, etc. Internet Easy focuses on cross-border e-commerce logistics supply chain services and is the only enterprise that integrates global postal channels.

2、 COD logistics mode:

COD logistics mode, also known as cash on delivery service mode, where the logistics company charges for the goods upon delivery, which is commonly referred to as "pay and deliver".

At present, COD cross-border e-commerce B2C logistics is popular in the cross-border e-commerce logistics industry, and many companies have launched cash on delivery services.

The major advantage of the COD logistics model is that it abandons the traditional logistics model's advance payment costs and the risk of bad debts, and reverses the entire cash flow operation process from the traditional model.

The seller's sales revenue and cash flow from profit are all controlled by the freight forwarder. And what attracts sellers is a large and considerable cash flow and the absence of the risk of bad debts.

3、 Domestic express delivery mode:

Domestic express delivery mainly refers to EMS, SF Express, and "Four Connections and One". In terms of cross-border logistics, Shentong Yuantong's layout was relatively early, but it has only recently expanded. For example, Shentong in the United States was launched in March 2014. YTO Express also collaborated with CJ Korea Express in April 2014. However, Zhongtong, Huitong, and Yunda have just started launching cross-border logistics services.

SF's international business is more mature. At present, it has opened express delivery services to countries such as the United States, Australia, South Korea, Japan, Singapore, Malaysia, Thailand, and Vietnam. Goods sent to Asian countries usually take 2-3 days to use.

In domestic express delivery, EMS's international business is complete. By relying on postal channels, EMS can directly cover over 60 countries worldwide. Compared to the four major express delivery giants, the cost is relatively low. The ability to clear customs in China is very strong. It takes 2-3 days in Asian countries and 5-7 days in Europe and the United States.

4、 International express delivery mode:

Refers to the four major commercial express delivery giants, namely DHL, TNT, FEDEX, and UPS. Through their self built global network, these international express delivery providers utilize their powerful IT systems and localized services worldwide to provide high-quality online product experiences for overseas users.

For example, packages sent to the United States via UPS can arrive within 48 hours. However, high-quality service comes with expensive prices. Generally speaking, Chinese merchants will only use international commercial express delivery to provide goods when the customer's timeliness requirements are high.