Benefits of logistics agency for cross-border e-commerce businesses
The benefits of logistics agency for cross-border EC (electronic commerce) businesses include the following:
1. Efficiency and cost reduction:
Logistics agencies handle product storage, packaging, and delivery work on your behalf, allowing businesses to save the cost and effort of building and maintaining their own logistics systems.
In particular, the ability to ship goods on demand without holding large amounts of inventory improves cost performance by converting fixed costs into variable costs.
2. Expertise in international logistics:
Cross-border e-commerce involves sales in multiple countries and regions, so specialized knowledge is required, such as customs procedures, import/export regulations, and selecting the optimal route for international shipping.
Logistics agencies have this specialized knowledge and support smooth international transactions.
3. Warehouse network according to region:
If a logistics agency has warehouses in multiple regions, the business can store inventory in each region, allowing faster delivery for customers. Masu.
This will improve customer satisfaction and lead to repeat purchases.
4. Ensure scalability:
As your business grows, the amount of products you ship increases.
By using a logistics agency, you can smoothly expand the scale of your business from small scale to large scale operations.
5. Improved flexibility:
A flexible logistics system is required to respond to seasonal demand fluctuations and temporary increases in order volume due to promotions.
Logistics agency services can quickly respond to these changes, allowing us to provide services that meet your needs.
These benefits include evidence of real-world operational efficiency and cost reductions experienced by businesses themselves, success stories from logistics agencies, and reports and statistics from independent research organizations.
In addition, the emphasis on the merits of logistics agency may differ depending on the circumstances, strategies, and industry trends of each business operator, but these merits are important as a basic framework for developing international business. Recognized.
What are the precautions and issues when using logistics agency services?
The following are points to note and issues when using cross-border EC (electronic commerce) logistics agency services.
This information is based on our work experience in logistics and cross-border e-commerce, expert knowledge, industry best practices, and publicly available information from each company.
important point
1. Selection of a service provider:
– It is important to carefully evaluate the scope and quality of services provided by a logistics company, costs, delivery area coverage, customs clearance capabilities, etc.
– Check the track record and reputation of the logistics agency, and be sure to choose a partner you can trust.
2. Cost and Price Transparency:
– Know the details upfront for hidden costs (surcharges, fuel surcharges, etc.) and see an estimate of your total costs.
3. Understanding the customs process:
– Customs procedures can be complicated when sending goods to countries with different customs and regulations.
Make sure that your logistics agency provides proper customs support.
4. Inventory Management and Shipping Tracking:
– It is essential to maintain system integrity so that the actual inventory levels always match the inventory levels shown online.
– It’s also important to have a strong shipping tracking system so customers can track their items.
5. Quality of customer service:
– Make sure your customer service system is in place to deal with any issues quickly and effectively.
6. Warehousing and shipping options:
– It is important to evaluate the warehouse conditions, security, and flexibility of shipping options where your products will be stored.
assignment
1. Delivery time delays:
– International shipping may be delayed due to unforeseen circumstances (customs inspection, transportation agency delays, etc.).
2. Risk of damage or loss:
– When transporting goods over long distances, the risk of damage or loss of goods increases, so adequate insurance measures are required.
3. Changes in regulations and customs:
– It is necessary to respond quickly to changes in import regulations and customs rules in target countries.
4. Challenges of reverse logistics:
– The process of reverse logistics (reverse logistics) when there are returns or exchanges can be complex and costly.
5. Cultural/linguistic barriers:
– When shipping to different countries or regions, communication may be difficult due to language and cultural differences.
As a countermeasure, it is important to build a good relationship with a reliable logistics company, clarify the content of the service at the time of contract, and communicate in a timely manner.
It is also necessary to always pay attention to the latest international trade information and establish a system that can respond flexibly and quickly. .
