(Source: https://pltfrm.com.cn)
Introduction
For overseas brands entering China, choosing the right shipping method is critical to balancing cost, speed, and reliability. Air freight offers fast delivery but comes with high costs, while sea freight is economical but slower, creating challenges for overseas brands seeking to meet Chinese consumers’ expectations. With over a decade of experience helping overseas brands localize in China, we’ve observed that integrating SaaS logistics tools and regional fulfillment strategies can optimize this balance. This article provides practical guidance for selecting the most effective freight method for your China e-commerce operations.
1. Evaluating Shipping Speed Needs
1.1 Urgency of Product Delivery
Fast-moving consumer electronics or seasonal products often require air freight to meet market demand. For example, a European wearable tech brand shipped new releases via air to coincide with major Chinese shopping festivals, ensuring on-time availability and capturing peak sales opportunities.
1.2 Buffering for Sea Freight
Sea freight suits non-urgent inventory such as bulk stock of accessories or non-perishable goods. Brands can plan months in advance, reducing shipping costs while still ensuring consistent stock levels for high-demand items.
2. Cost Comparison and Budget Optimization
2.1 Freight Cost Analysis
Air freight can cost 4–5 times more than sea freight per unit, which significantly impacts profit margins. Overseas brands can use SaaS platforms to simulate different freight scenarios, calculating total landed cost including duties, storage, and delivery.
2.2 Mixed-Mode Shipping Strategies
Combine air and sea freight strategically: ship core SKUs via air for quick fulfillment, while non-urgent inventory moves by sea. A North American electronics brand reduced logistics costs by 25% while maintaining fast delivery for their most popular products.
3. Inventory Management for Freight Efficiency
3.1 Strategic Stock Allocation
Store fast-selling items closer to Chinese consumer hubs for air shipments, while bulk items for sea freight can be centralized in cost-efficient warehouses. This ensures that high-demand products reach consumers quickly without overburdening warehouse costs.
3.2 SaaS Forecasting Tools
Leverage demand forecasting software to predict sales trends and optimize the split between air and sea freight. Brands using these tools can prevent overstocking and reduce emergency air shipments that inflate costs.
4. Customs and Compliance Considerations
4.1 Import Documentation Accuracy
Proper classification and documentation are crucial to avoid delays, fines, or additional charges. Automating customs paperwork through SaaS tools ensures compliance whether using air or sea freight.
4.2 Regulatory Planning
Consider restrictions on certain electronics components that may affect air or sea shipment eligibility. Planning ahead avoids costly last-minute adjustments.
Case Study: A European Smart Home Brand Implements Mixed Freight
A European smart home brand entering China in 2023 faced high air freight costs but needed timely deliveries for new product launches. Our agency guided the brand to:
- Ship high-demand electronics via air to meet seasonal demand.
- Use sea freight for accessories and bulk inventory to save costs.
- Integrate SaaS-based inventory forecasting to optimize shipment schedules.
Within 9 months, the brand reduced logistics costs by 28%, maintained rapid delivery for key SKUs, and improved customer satisfaction by 35%.
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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