For start-up small individual retailers, wholesaling goods from the China is able to buy as many as products with lower budget. The online cross border trade is more preferred as it is quick, convenient and cheaper than normal trading method. However, the international shipping cost is always the way to keep customers from abroad. —
Due to the limitation in the geometrical distance, the shipping cost is one large barrier in wholesale from China and other international E-commerce as well. For small wholesalers, the cost of transportation is even more expansive than that of the goods itself. The competitiveness of the low price of Chinese products is deducted by the high shipping cost.
One way to overcome this obstacle is to build up steady and long term cooperation with the transportation companies for the E-commerce website. And then they are able to offer clients the free shipping service. In addition, this is the general solution that most E-business platforms come up to attract their customers. However, this kind of service is offered only when the total order amount adding up to a certain figure or specific items included in the order. In fact, customers are very likely to face up embarrassing conditions; either the order amount is far from the designated figure and then they have to pick up unnecessary goods, or none of the specific items fits to their needs. No matter which situation is, they will have to make a decision between whether making the payment for the shipping fee or bring something unnecessary back to home.
There is another plan concerning with the solution for shipping charge similar to the mentioned free shipping policy. Taking Amazon, the worldwide E-commerce websites for example, it has this flat rate policy. The Amazon users are free of shipping charge in unlimited order times once they prepay $99 fund. The shipping cost of Amazon could be generally calculated as $18 dollars, if the clients place orders over 6 times, the extra cost belongs to the shopping websites expenses. Even the websites pay for the shipping cost, but this policy is able to cultivate the customer royalties and it is one potentially advertising method. In the customer’s terms, if they are in lasting need of certain E-commerce sites, this monthly or yearly rate is worthwhile paying.
However, focusing the trading on one website might confine the selecting range. In addition, the small retailers who require for diversification their products may have to make several orders in different importing websites. Under this circumstance, the two policies might unable to meet their needs. Some of the Chinese wholesale websites have another solution suitable for small wholesale businesses. For example, Import Express offers a unique policy to reduce the shipping cost for their clients. They are eager to combine the orders and products for their client from other shops or websites in one package for their clients. In this case, the client only has to pay one international shipping check. The collocation and combination procedure is undertaken by them rather than clients. This will be a great help in saving cost for the start-ups and those have to place orders in several sites.
The E-commerce is one thriving business and will last for a long period, the rewarding solution will increase. However, at current time, the high shipping cost is unlikely to solve in a short time. Therefore, the E-commerce buyers have to pick up the websites offering the best policy and services.
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Organization: Shanghai Sourcing Ltd
Address: No.999 West Zhongshan Road, Suite 1117, Shanghai, China 200051
Phone: +86 02162730733
Release ID: 126478