(Source: https://pltfrm.com.cn)
Introduction
Managing logistics costs is crucial for overseas brands seeking growth in China’s e-commerce market in 2025. Rising shipping rates, complex customs processes, and last-mile inefficiencies can erode profit margins. With over 10 years of experience helping overseas brands localize in China, we have identified strategies to minimize expenses while maintaining service quality. This article provides actionable insights on reducing logistics costs for overseas brands operating in China’s e-commerce ecosystem.
1. Consolidated International Shipping
1.1 Bulk Shipment Optimization
Overseas brands can significantly reduce international freight costs by consolidating products into bulk shipments. A North American electronics brand switched from weekly air shipments to bi-monthly sea shipments, lowering per-unit shipping costs by over 50%.
1.2 Carrier Negotiation and Partnerships
Leverage shipping volume to negotiate lower rates with carriers or collaborate with local logistics providers with established relationships. This approach ensures competitive shipping fees while maintaining delivery reliability.
2. Warehouse Operational Efficiency
2.1 Automation and Labor Cost Reduction
Implement warehouse automation tools such as AGVs, barcode scanners, and inventory SaaS systems. Brands that adopted automation reduced labor costs while improving order fulfillment accuracy.
2.2 Space and Energy Optimization
Optimize warehouse layouts to maximize vertical storage and categorize products by turnover rate. Incorporate energy-efficient lighting and HVAC systems to reduce utility costs by 15–20%.
3. Smart Last-Mile Delivery Strategies
3.1 Local Provider Partnerships
Collaborate with JD Logistics or SF Express to utilize their regional delivery networks and volume-based discounts. Overseas electronics brands achieve faster delivery at lower costs by leveraging local infrastructure.
3.2 Reducing Delivery Failures
Implement address verification and flexible delivery schedules. Minimizing failed deliveries decreases re-shipping costs and enhances consumer trust.
4. Inventory Management to Reduce Holding Costs
4.1 Just-in-Time (JIT) Replenishment
Use SaaS tools for real-time inventory tracking to maintain optimal stock levels. JIT practices reduce capital tied up in storage and minimize obsolescence risks for electronics products.
4.2 Targeted Promotions for Slow-Moving Inventory
Offer discounts, bundles, or limited-time promotions to clear slow-moving stock, freeing warehouse space for high-demand items.
Case Study: A North American Consumer Electronics Brand Reduces Logistics Expenses
A North American electronics brand entering China struggled with high shipping fees, customs, and holding costs. Our agency helped the brand:
- Consolidate international shipments into monthly sea freight.
- Automate warehouse operations and optimize space utilization.
- Partner with JD Logistics for cost-effective last-mile delivery.
Within 7 months, logistics costs decreased by 28%, delivery times improved by 35%, and inventory turnover increased, demonstrating how cost-saving strategies and SaaS tools can optimize China operations.
PLTFRM is an international brand consulting agency that works with companies such as Red, TikTok, Tmall, Baidu, and other well-known Chinese internet e-commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries’ exports in China account for 97% of the total exports in Asia. Contact us, and we will help you find the best China e-commerce platform for you. Search PLTFRM for a free consultation!
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