Why Choose 3PL/FOB Shipping Terms?
This is a very good question: why choose EXW/FOB over CIF. In fact, this is an increasingly obvious trend in recent years, that is, more and more buyers choose EXW/FOB. We would love to share our experience with you.
1. It can greatly save shipping costs, reduce costs and risks during the shipping, import & export.
--Leave it to the professionals can Killing two birds with one stone
0n the one hand, even if it is a CIF clause, the cost of freight is actually paid by the buyer. When the seller calculates the CIF price, it will report the freight part of the CIF price in a relatively high level. This may be because they do not understand the cost transportation carefully, or it may be intentional. In extreme cases, the supplier may choose some unsafe and non-compliant transportation methods to handle the goods, or even collude with their freight forwarder to pass the cost of the port of origin to foreign buyers. Under these risks, it is obvious that if you cooperate with a designated freight forwarder, you can save costs and reduce risks. On the other hand, when you purchase frequently, there will definitely be a need to collect goods from several different suppliers together, and after the goods have accumulated to a certain scale, you will need to focus on palletizing and shipping. You know that economies of scale can reduce shipping costs. , In this way, the role of professional third-party freight forwarding is obvious. In addition, our daily shipment volume is very large. We cooperate with express delivery companies to apply for a large discount express account, and we keep long-term agreement prices with airlines and shipping companies. On the one hand, the cost of shipping is more controllable.
2. Master the initiative of goods and transportation.
--whoever has the initiative will has the convenience
Cargo initiative:
After you placing an order, the Chinese cooperative freight forwarder can coordinate and urge suppliers to produce and deliver on time. After picking up the goods and before exporting to China, the third-party freight forwarder intervenes in product quality inspection, inventory count and other links that you care.
Transportation initiative:
Why some suppliers prefer CIF, because the production and transportation of goods are under their own control, which can avoid the buyer's forwarder to urge timely delivery according to the EXW/FOB goods handover time. On the contrary, if you cooperate with a professional forwarder, the transportation will be in your hands.
3. Make the transportation of goods more professional and controllable.
--A virtuous circle in the supply chain will promote business development
Our professional customer service team will synchronize the whole process of cargo processing and transportation with partners in real time throughout the process: including but not limited to: delivery, transit, China export customs declaration, international sea and air iron block truck transportation, import customs clearance, delivery, transit and final One mile delivery. Our handling of China's cross-border logistics is more professional and controllable, which can greatly reduce the delay in transportation time and the increase in transportation costs caused by information asymmetry. I believe that under the terms of the CIF, sometimes it is unavoidable that delivery delays, lag in shipping status updates, opaque fees, temporary addition of additional fees, etc.
4.Diversified transportation methods and customized transportation solutions. --More choices, more in line with business and customer needs
The development of cross-border e-commerce in China in recent years has prompted rapid changes and innovations in China's cross-border logistics industry. Not only the traditional Express DDU/DDP, air/sea LCL/FCL, but also derived a lot of services: such as All in price AIR/SEA door to door, All in price AIR/SEA door to FBA/WFS, global drop shipping. Even, you can directly ship goods from China to the end consumers of your website through a third-party freight forwarder. The overall transportation time is the same as that of the US delivery, and the cost may be more economical. When the buyer check the tracking information, 100% believes that their products are actually ship from Your US warehouse. Drop shipping from China is not only a transportation problem, but also a procurement and inventory management problem, because you can have a more flexible supply chain solution and a more flexible inventory management method. Isn't it amazing? We are providing this kind of service to some foreign customers.
5. Protect products and intellectual property rights and extend the sales life cycle of products.
--Super important, only a wise man can realize this
Is this also possible? Yes, we are helping some partners with similar possible worries.
If you choose a supplier to produce all the main parts, spare parts, including packaging, instructions, etc., and then assemble them, even if a non-disclosure agreement is signed, the risk of product design and patent leakage is still very likely to occur, because a single supplier has control over All information on the production and packaging of the finished product is available. This easily prompts them to leak relevant designs, molds or innovations to your competitors, or even change their LOGO to become competitors you don't know about. You may not know that China's cross-border e-commerce has grown at an annual rate of more than 30% in recent years. More and more traditional factories or suppliers choose to open stores on Amazon's Walmart e-commerce platform to sell similar products to end consumers in the United States . In order to save trouble, many purchasing staff of some companies even send the FNSKU barcode information of the Amazon platform to the suppliers. After the suppliers have this information, they can check Amazon's sales links, prices, sales and other business information. In recent years, more and more buyers have dispersed purchases through multiple suppliers, and then shipped them to third-party freight forwarding warehouses. The third-party freight forwarders assemble, pack, and post FNSKU before shipping to FBA. In the past, we have provided similar services to many brand companies and start-ups, reducing or even avoiding similar business risks.
Now, I think you may have discovered that this is actually a very delicate issue and relationship, and there are many other conveniences and advantages in it, and these are the basic things that we have been doing for our partners in the past. We are essentially a professional cross-border logistics solution provider. We create value for our partners with our in-depth understanding of cross-border e-commerce, large discount express accounts, sufficient booking and contract prices, and professional services.