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Cross-border sellers:how to save my profits?

release time:2021-08-04 | article source:

Since the epidemic, cross-border e-commerce has risen rapidly. As a key link in the ecological chain, cross-border logistics has also risen. According to VesselsValue’s latest statistics, the number of new container ship orders in the first half of this year reached 286 vessels of approximately 2.5 million TEU, with a total value of US$21.52 billion, which is higher than the record level of 99 vessels and US$9.2 billion in 2011. More than twice, a substantial increase of 790% compared to the same period last year.

The shortage of cross-border logistics, the shortage of ships and containers, and the continuous congestion of major ports...makes the upcoming peak season of the second half of the year approaching amidst the "rising" of major shipping companies—increasing freight rates and levying various value-added ,additional fees. In fact, as early as July, the price of a box was as high as tens of thousands of dollars. Since August, due to the rising tide of shipping companies and scalpers, containers are now even more difficult to find. public sellers complain incessantly, "we continue to earn that money is not enough to take in."

Grab boxes and space, and you have to prevent forwarder  running away !

It's too difficult for sellers now! In order for the cargo to arrive at the destination country on time, it is necessary not only to book cabins and containers in advance, but also to beware of being dumped or dumped when grabbing a container... What's more horrifying is that sellers must always pay attention to avoiding the tragedy of freight forwarding rolls. happened.

Involved in the industry, the cost is too high

Recently, the "spiral price war" on Amazon's European and American sites has revived. Sellers and sellers are bargaining prices frantically in order to grab orders. On the one hand, they are forced to lower product prices and can only rely on volume for profit. On the other hand, logistics costs remain high. Some sellers can't help but sigh: "I have made a loneliness." There is no profit at all, and this year I just want to save my life. 

Among them, the logistics of special products is even more expensive. According to relevant sources, the freight for special goods shipped from China to the United States is more than US$25,000, and one container/cabin is hard to find. The general cargo business is already hot enough, and the cross-border transportation of sensitive cargo and special categories is even more difficult!

CCTV also recently reported on this phenomenon. International shipping prices have skyrocketed five-fold, and sellers are bargaining their prices. This has led to a situation where sellers are struggling despite the popularity of cross-border e-commerce.

Cross-border e-commerce logistics itself has the characteristics of fragmented orders and high timeliness requirements. Sellers often hope to reduce the cost of long-term transportation by relying on scale effects. However, the current capacity of cross-border logistics cannot meet the needs of cross-border e-commerce. , Demand exceeds supply, leading to market premiums. So far, cross-border sellers’ profits have been squeezed out bit by bit in price wars and high freight charges Even if the seller chooses to ship by postal parcel, it will not only have a low transportation guarantee factor and slow timeliness, but will easily miss orders, which is not a long-term solution.

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