Cross-border Business Knowledge

Challenges and opportunities of cross border e-commerce industry in Logistics

April 20, 2021

Compared with domestic e-commerce, cross-border e-commerce reduces the operation difficulty of sellers in most processes due to the technical support of cross-border platform. However, there is a link that makes this group of sellers have some headaches. This link is cross-border logistics. E-commerce and logistics are a pair of “good and bad” relationship. Cross border e-commerce and cross-border logistics are even closer to each other. However, no matter how close the product is to the place of delivery and the place of receipt, it still needs to cross the distance between the two customs. It is difficult for overseas consumers to know the logistics information at the first time, which has become a practical problem in the cross-border logistics industry. Next, let’s talk about the problems of cross-border logistics one by one.

The transportation cost is high, and it is easy to be affected by the weather change. The products of cross-border e-commerce transactions are mainly small light industrial products with small volume and light texture. Although the transportation time of aircraft is short, the cost is too high, so it often chooses sea transportation. The biggest drawback of sea route is that it takes a long time, ten days and a half months or even relatively fast. Sea transportation is also the most vulnerable to weather. If the freighter does not happen to encounter extreme weather or extreme conditions, the time for consumers to get the products may be infinitely delayed. Even if overseas consumers are not so demanding on logistics time, long waiting time will consume consumers’ patience, and ultimately affect the probability of consumers’ second consumption in the store.

It is difficult for consumers to know the logistics information at the first time. The seller can know the destination of the package before customs clearance, and can also provide consumers with clear logistics information. But once the package is cleared, the uncertainty will gradually increase. If the package is received in European and American countries where the e-commerce industry is relatively developed, the seller can control the logistics information after customs clearance in time; however, if the package is received in some countries where the logistics industry is developing slowly, it is difficult to find the corresponding information quickly even if there is a number. Coupled with the language barrier between the seller and the buyer, even if there is a platform to provide intelligent translation, it will also affect the efficiency and accuracy of communication.

The package will inevitably be damaged during transportation. Because the transportation distance of cross-border logistics is generally long, the package will inevitably experience bumps and bumps in the transportation process, and the long distance will increase the uncontrollable factors in the transportation process. For example, in the process of transportation, is it handled with care, or is it directly thrown onto the boat or onto the car; in the process of transportation, is it placed on a flat surface, or is it randomly stuffed in the corner or even squeezed under the heavy objects. These seemingly unreasonable places may affect whether the package is flat or crumpled when it is delivered to consumers.

The high cost of return and exchange affects the consumer experience. If you are not satisfied with the product you received, you can open it at the post station directly in China, contact the customer service on the spot, and then send it back directly without even taking it home. But when the buyer and the seller are in two countries, or even two continents, the return and exchange of goods has become a headache for both sides. The seller can replenish the goods to the buyer without affecting his own interests, but the consumer will wait another 10 days and a half months and don’t know what kind of “suffering” will be caused after the long journey, which will lead to the invisible loss of the seller.

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