(Source: https://pltfrm.com.cn)
Introduction
Scaling in China’s vast market offers huge potential for overseas brands, but high shipping costs can erode profits. With over a decade of localization expertise, this article reveals cost-effective shipping solutions that enable brands to expand efficiently and compete in China’s dynamic e-commerce space.
1. Optimizing Freight Consolidation
1.1 Bulk Shipping Benefits
Consolidating shipments into fewer, larger loads reduces per-unit costs. Overseas brands can coordinate with suppliers to align delivery schedules, maximizing container space. This strategy is especially effective for high-volume exports to China.
1.2 Partnering with Freight Forwarders
Freight forwarders negotiate bulk rates with carriers, cutting costs further. They also handle documentation, saving time and resources for brands. This collaboration ensures cost-efficient shipping to major hubs like Beijing and Ningbo.
2. Utilizing Multimodal Transport
2.1 Combining Sea and Rail
Using sea freight followed by China’s extensive rail network lowers costs compared to all-air shipping. Brands can move goods to inland cities like Chengdu affordably. This hybrid approach balances speed and expense effectively.
2.2 SaaS for Route Planning
SaaS tools optimize multimodal routes by analyzing cost and transit time data. Brands can simulate different combinations to find the best option. This technology-driven planning reduces expenses while maintaining reliability.
3. Negotiating Carrier Contracts
3.1 Long-Term Agreements
Securing long-term contracts with shipping carriers locks in lower rates. Overseas brands can negotiate based on projected volumes, ensuring stability. This approach minimizes price volatility in China’s fluctuating market.
3.2 Volume-Based Discounts
Carriers often offer discounts for consistent high-volume shipments. Brands can plan seasonal campaigns to qualify for these rates. This tactic maximizes savings during peak sales periods like Double 11.
4. Automating Customs Processes
4.1 Digital Declaration Systems
SaaS platforms automate customs declarations, reducing manual errors and delays. Brands can submit paperwork electronically, speeding up clearance at Chinese ports. This efficiency lowers demurrage fees and storage costs.
4.2 Training and Support
Providing staff with training on digital customs tools ensures smooth operations. Localization agencies can offer ongoing support, helping brands adapt to regulatory changes. This investment pays off with faster, cheaper shipping.
Case Study: Australian Health Supplement Brand Growth
An Australian health supplement brand faced high shipping costs to China, limiting its market reach. By adopting freight consolidation and multimodal transport, and using a SaaS customs automation tool, they reduced shipping expenses by 35%. This allowed them to expand to tier-2 cities, achieving a 50% sales uplift within eight months.
Conclusion
Cost-effective shipping tactics are essential for overseas brands scaling in China. Optimizing freight, utilizing multimodal transport, negotiating contracts, and automating customs can drive profitability and growth.
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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