3PL Warehouse: Explaining Third-Party Logistics and Fulfillment Services
The success of an eCommerce business relies on its customers’ satisfaction and it all starts with how they manage their supply chain. Inventory management is a crucial part of the supply chain, making up most of your business processes. If problems are not addressed immediately and correctly, the goal of satisfying customers will not be met and will negatively affect your brand. Nowadays, businesses rely on third-party logistics (3PL) partners to manage their supply chain for them. This has already been a standard practice for many years, as businesses of all sizes are taking advantage of the benefits of using the services of a 3PL. So what is 3PL warehousing? And how to find the right 3PL provider for your business? Keep reading to find out. What does 3PL (third-party logistics) mean? A 3PL, or a third-party logistics provider, is a company that specializes in managing your supply chain and taking care of all your logistics needs. It can handle all your operations including warehouse management, fulfillment, and shipping. The term 3PL can also refer to a fulfillment center, order fulfillment companies, eCommerce fulfillment warehouse, and more. 3PLs are the backbone of today’s burgeoning eCommerce industry. Many brands have become accustomed to using a 3PL provider to take care of their warehouse operations and help them grow faster. Benefits of using a 3PL service The advantages of 3PL warehousing are enormous. Depending on your goals and the size of your company, a 3PL can be a much better alternative to in-house fulfillment. Here’s why: Save on costs Since 3PL providers have their own warehouse, you will save money on costs unlike when you have to rent your own. Not only that, but you will also save on labor costs because they have a staff member who will manage the warehouse. Uses advanced technology 3PLs use state-of-the-art warehouse technology which adds to the efficiency of the entire supply chain process. Demands can fluctuate anytime so it is important that your 3PL can provide a seamless approach when managing inventory to avoid delays. It is also easier nowadays because they can already integrate their system into your eCommerce store so any orders you get will automatically be updated with the warehouse. Allows flexibility and scalability Another great thing about partnering with a 3PL is that they can accommodate any increase in demands you might experience. It might be due to a store sale or you are planning to expand your business. Whatever the reason for the influx, the warehouse is capable of adjusting to your business needs. Work with experts Running an eCommerce business can be overwhelming especially since you have to think about the storage and transportation of goods to other parts of the world. It involves a lot of legal documentation and strategic planning to ensure that the orders will be delivered to the consumers in great condition and on time. A 3PL company has competent staff who are knowledgeable when it comes to the rules and regulations. They can also anticipate problems and provide necessary solutions immediately. Reduces risk Operating a 3PL and managing inventory on your own is risky especially if you do not have enough knowledge and resources for them. By getting the services of a 3PL company, the risk is greatly reduced, resulting in more efficient operations and a great customer experience. You will also have peace of mind while focusing on the other aspects of your business. Expansion to new markets A 3PL that has warehouses across multiple locations can help you enter new markets without significant investments. For instance, if you’re planning to expand to the US East Coast and Canada, a Pennsylvania fulfillment center could be a great fit to store inventory close to your audience and target customers, cutting shipping costs and reducing delivery times. How does a 3PL warehouse work? When availing of the warehousing services of a 3PL partner, you get to enjoy the whole package of order fulfillment services. Here are the steps involved in 3PL warehousing: Receiving stock and inventory management Once your products are done, the 3PL staff will schedule to receive them. Then they will store them in the warehouse based on their SKU (Stock Keeping Unit). When the items arrive in the warehouse, they will be registered into the system to keep track of the inventory easily. You will also have access to the inventory so you can be updated in real time with the status of your stocks. Picking and packing Since your eCommerce store is integrated with your 3PL partner’s system, they will be notified immediately whenever you receive an order. They will pick the items being ordered and pack them to prepare for shipping. Most use standard packaging but some companies offer customized packaging for your products which can add to the satisfaction of your customers. Then, they will attach important labels such as delivery addresses and receipts. Shipping 3PLs already have their shipping partners but they can also compare different shipment services to find the right option for your needs. They will negotiate the best rates so that you can get the best services without breaking the bank or sacrificing delivery times. Once the orders are packed, they will be picked up by the shipping partner and the tracking information will be uploaded to the 3PL’s management system and also to the business’s store platform. Customers will also receive the tracking details. Returns processing Not all orders will be successful every time. Some customers might not be satisfied with what they receive so they end up returning the items. Returned items will be sent back to the warehouse and the staff will determine whether to keep or dispose of them depending on your preferences or policies. Check whether your potential 3PL partner offers a returns handling service as this can save you a lot of trouble when managing returns on your own. How to choose the right 3PL warehouse services? Getting the services of 3PL warehousing will benefit your business
What is a Product Sourcing Agent and How to Find One?
Running an eCommerce business is no easy task. There are a lot of factors to consider to become successful and make a mark on consumers. One of the most important factors is to have great product quality. Consumers look for businesses and sellers with products up to their standards. Once a consumer is satisfied, they will come back again with another purchase. So how does a business maintain this positive relationship with its consumers? It all starts with what you sell and how you get it. Procurement, which is the way you source products from China and other countries, could make or break your business. Suppliers and factories have different quality levels, lead times, and, of course, prices. To navigate those complexities, eComm brands work with product sourcing companies or agents to help them get quality products and grow their business. So what is a sourcing agent? Why is it important for businesses? And how to find a sourcing agent? Keep reading to find out. What is a sourcing agent? A sourcing agent is an individual or company that is primarily responsible for locating suppliers and manufacturers, finding products for you, and sometimes even handling the logistics related to that. You can choose a sourcing agent or an agent from a sourcing company depending on your needs and also whether they can find a solution to your problem. Agents from a sourcing company or agency will have more resources and can give you a more streamlined process. No matter what you choose, these sourcing experts will help you smooth out your business process from start to finish. What does a sourcing agent do? The primary job of a sourcing agent or sourcing company is to find suppliers or manufacturers for an eCommerce business. But a reliable sourcing agent may offer more than that. Sourcing agents can do so much more than just look for potential suppliers. Here are some of the main and most common services a purchasing agent offers to their clients: Sourcing products from manufacturers and suppliers Before anything else, the sourcing agent would have to assess the buyer’s needs first. As the buyer, you have to establish your requirements so that the agent knows where and what to look for. Once everything is laid out, the agent can now make a list of the best prospects and let you select the most suitable for your business. Aside from gathering a list of potential suppliers, a sourcing agent will also help you look for products and suppliers with the best prices and can deliver great results. Not all businesses can afford high prices so it is the agent’s job to find a supplier that is within the price range of the buyer but still provides good quality products. Monitor production When you have selected your supplier or manufacturer, the next step is production. A good sourcing agent or company coordinates and monitors the production from start to finish. They make sure that the products are made on time to prevent unwanted delays and check whether the supplier has fulfilled all of the buyer’s requirements. Quality control While monitoring the production process, a sourcing agent will also do quality control to ensure that the products are made with great-quality materials. This is also done to guarantee that the supplier did not skip any steps in the production. Some irresponsible suppliers rush this step to save time and meet the deadline. However, this could cost the quality of the products which would lead to losses. By inspecting these products, the sourcing agent can separate the defective ones and have them replaced if possible before the products are shipped. Quality control may be done randomly or the agent might personally go to the factory and do a complete check. Well-established sourcing agencies also have their own quality control team and can replace faulty products on behalf of the buyer when needed. Arrange shipment process Before the products are shipped, the sourcing agent would do last-minute inspections to ensure that they are packaged well to prevent leakages and breakages during shipment. They would also check that the products are labeled correctly and that the quantity is correct. Once these are cleared, the next step is to arrange the shipment process. Depending on the size and weight of your orders and also your budget, the products may be shipped via air freight, land freight, or sea freight. Choosing the best shipment service should be based on the track record of the shipping provider. Do they experience little to no delays? What is their performance during peak seasons? You would want to choose a provider which is always consistent and a sourcing agent will help you to come up with a decision. The work of the agent does not stop with selecting the shipment provider. It is also their responsibility to inform you about additional paperwork that may be needed for customs clearance especially when you are dealing with a supplier overseas. This is important to move the goods quickly and less risky. Take note that not all sourcing agents and companies offer the same services. Some may offer fewer services while others offer additional services such as product photography, warehousing, consolidation, and others. Why should you hire a sourcing agent? In the eCommerce landscape, almost all sellers source their products in China because it is more cost-effective. While this is the preferred practice, it can be difficult for a new business to find a reliable manufacturer, especially for one based in a foreign country. A solution to this particular problem is to get the services of a sourcing agent in China. If you are a business owner, you might think how would you benefit from hiring a sourcing agent based overseas? Wouldn’t it be just additional expenses? Large or small, getting a sourcing agent is highly beneficial for you. Below are some of the reasons why you should consider: Access to more products Product sourcing agents who have been working for several years in the Chinese
Exploring the World’s Factory: Top Cities in China for Sourcing and Manufacturing
From simple toys and trendy clothes to advanced electronics, China’s factories can produce almost anything, with each city specializing in specific industries to ensure flawless production In the past two decades, China has become a one-stop shop for all things manufacturing. But with an area spanning over 3.7 million square miles, the country’s manufacturing hubs are spread across many cities, mostly on the eastern coast. If you’re an eCommerce seller interested in sourcing from China, here’s our pick for the top Chinese cities to get your products. Shenzhen: The Silicon Valley of China Shenzhen holds many titles. It’s one of China’s largest cities by population, one of the country’s richest, and the manufacturing hub from which most of the world’s tech gadgets come. Besides being home to many regional headquarters of international brands, Shenzhen boasts a vast network of thousands of suppliers specializing in consumer electronics. From power banks and USB cables to chargers, speakers, and so much more, this city is truly the Silicon Valley of China. On top of all that, Shenzhen’s location gives it a unique advantage in the world of logistics. The city is near some of China’s largest container ports and less than 19 miles away from Hong Kong and its large cargo airport, which explains why many of China sourcing agents are based there. Guangzhou: Top Chinese city for cosmetics and jewelry Dubbed the “Canton City” for hosting one of the world’s most important trade shows, Guangzhou is among the top cities for product sourcing in China. It specializes in many industries such as cosmetics, jewelry, and more. The city is home to many makeup suppliers and has factories of all varieties. In addition, Huadu District, known as the “jewelry capital of China”, gathers worldwide companies that produce gold, crystal, pearl, agates, and more. Dongguan: A city for all things China sourcing Located just north of Shenzhen, Dongguan is known for its outstanding manufacturing capabilities and is home to some of the best sourcing agents in China. Here, you can find everything from electronics to toys. Just a few years ago, almost half of the world’s toys came from Donnguan, which included a third of all Barbie dolls. Another unique niche for the city is its numerous apparel suppliers who are familiar with the latest fashion trends in the West. Shantou: The toy paradise for eCommerce sellers A few talks about Shantou when ranking top Chinese cities for manufacturing and product sourcing. Despite being smaller than renowned manufacturing hubs like Shenzhen, this coastal city has its niche: toys, a lot of them. The city is responsible for half of China’s toy production. If you’re running an online shop, Shantou should top your list if you sell lots of toys. Zhejiang: Household items, textiles, and more Overlooking the East China Sea is Zhejiang, a rich Chinese province and home to many thriving industries. The province’s top manufacturing sectors comprise electromechanical industries, textiles, chemical industries, food, and construction materials. It is where a wide variety of household goods can be sourced. The city of Ningbo, for instance, is renowned for having some of the top China sourcing agents and suppliers for home appliances. If you source silk products, it’s important to know that Hangzhou, the capital of Zhejiang, is home to some of China’s best silk producers. While the province is a little far away from the bustling trade lanes of Shenzhen and Hong Kong, the province still has direct access to the sea and has a robust logistics network. Gain access to 2000+ reliable suppliers with Lansil Global Knowing in which Chinese city the suppliers are located isn’t enough to be able to source the best products. Factories are abundant, but communicating with them and securing the best deals isn’t an easy feat. How to tap into the Chinese market? Lansil Global can help. Our team has a comprehensive knowledge of various industries to find the best suppliers for product sourcing in China. We have already established connections with over 2,000 factories across the country, and we’re always ready to negotiate the best deals for you. Take the first step today by submitting a custom quote. Notice: JavaScript is required for this content.
What Does ‘In Transit’ Actually Mean and How Long Does It Take?v
In the world of eCommerce, the ‘In Transit’ status update is one of the most popular terms everyone has encountered while waiting to receive a shipment. In this blog, we explain what does In Transit mean, why in transit takes so long sometimes, and how it differs from ‘out for delivery’ and other shipping terms. What does in transit actually mean? The ‘In Transit’ shipping status means that your package has been shipped and is on its way to the final destination. This doesn’t necessarily mean that the package is currently moving in a delivery vehicle or plane, as it can also mean that the shipment is at a fulfillment center or passing through customs clearance. What does ‘stuck in transit’ mean for the shipment? ‘Stuck in transit’ is a shipping status update used by eCommerce retailers, carriers, and other international shipping lines. Wondering what ‘stuck in transit’ means? It simply indicates that your shipment will be delayed. This could happen for various reasons, such as unexpected weather conditions or the loss of a package. Reasons why packages get stuck in transit There are various factors for why a shipment may get stuck in transit. Here are the most common ones: Customs delays Customs delays are one of the top reasons why a package is still in transit. An international logistics company often has to go through customs clearance for every package entering a new border. Sometimes, the clearance process could take longer than expected no matter the shipping option you chose. Delivery exception delays This refers to the unforeseen circumstances under which a package cannot be delivered on time. These include high demand during peak seasons, damaged packages, incorrect shipping labels, a wrong tracking number, and harsh weather conditions. In addition, national holidays could also have an effect if there is a package in transit, as shipping companies operate mostly on business days. Exceeded package dimensions Shipping delays sometimes happen because package dimensions are too large. To solve this, the package has to stay stuck in transit until another shipping method is available to transport the package. How long does ‘In Transit’ take? Estimated delivery date Everyone ordering online gets anxious about transit time and how long it takes. The shipping time for the ‘in transit’ shipments varies widely based on many reasons. The factors affecting the shipping time include distance, carrier, delivery method, unexpected delays, and whether the package needs to go through customs clearance. In the past few years, advanced and real-time tracking technology has made it easier for order fulfillment companies, carriers, and freight forwarders to give a more accurate delivery time. So when your shipment is in transit, you’ll be able to see the estimated time for its arrival. In Transit vs Out for Delivery: When does the package reach its final destination? ‘Out for delivery’ is another common shipping update that usually comes after ‘in transit’. To understand the difference between in transit and out for delivery, you should know that when a package is in transit, it doesn’t necessarily mean that it’s moving directly to you, as there are many steps a package should go through before reaching the last destination. This is where ‘out for delivery’ comes in. This status update means the package is the last step of delivery, which means the package will arrive to you today and it’s being handled by a last-mile delivery company. For example, let’s say you live in Pennsylvania and made an online order. If your eCommerce application is showing ‘in transit’, it means the package is on its way to that state. When the status changes to ‘out for delivery’, your package has probably left a fulfillment center in Pennsylvania and is being delivered to you on that day. What does In Transit mean in popular shipping companies? In transit is mostly the same thing across different logistics companies like USPS and FedEx. But it can take longer or shorter time depending on the carrier handling the package: Meaning of in transit on USPS In Transit is associated with the United States Postal Service (USPS) due to its position as the most popular shipping service for mail and packages. ‘In transit’ in USPS means that the package is shipped and on its way to the final destination. It’s hard to know exactly how long does ‘in transit’ take in USPS, as the package could be in a USPS facility, plane, or delivery truck. However, it usually takes a few days. What is the meaning of ‘in transit’ in FedEx? If you’re asking why does your FedEx package is in transit, the company has the answer for you. According to FedEx tracking and support page, ‘in transit’ means your package is on its way to the final destination, but it doesn’t always mean the shipment is in a moving truck or aircraft, as it might also be in a FedEx facility. What does In Transit order status mean on UPS? In UPS tracking, the ‘in transit’ status means that your package is being transported to you through any of UPS’ infrastructure. So the shipment could be in a UPS warehouse, a delivery truck, or even an airplane. How long will a package stay in transit with Shein? There is no one answer to how long your Shein package could stay in transit, as it depends on your destination and shipping method such as expedited shipping. Generally, domestic orders take around 2-5 business days, but international packages could take between 7-12 business days. Why shipping status updates are so important? Shipping updates like ‘shipped’, ‘in transit’, ‘out for delivery’, and ‘delivered’ are so important, especially in consumer-facing industries like eCommerce. With the rising complexity of eCommerce logistics and order fulfillment, these updates help customers understand how their shipments are being delivered and what the correct update is. ‘Shipped’ or ‘Order has been shipped’ means that your order has been processed and the package has left the seller’s warehouse. After the order is shipped,
Is AliExpress Legit? Tips to Shop Safely and Avoid Scams
AliExpress is one of the world’s most popular eCommerce marketplaces, widely known as the Amazon of China. With affordable prices, a wide selection of products, and an easy-to-use interface, it’s the go-to choice for millions of shoppers. Due to its popularity, you might wonder whether is AliExpress legit or not. In this blog, we dive deep into AliExpress and how to use it safely while avoiding common scams. Is AliExpress legit? Yes. AliExpress is a legitimate online marketplace owned by eCommerce giant Alibaba Group. It works by allowing sellers and manufacturers from China to sell directly to online shoppers around the globe. While AliExpress is a trusted platform, not all the sellers on it are. The platform is so large that you can find millions of sellers; some of them are reliable and some are not. So you just need to do your homework first to make sure you’re dealing with a reputable seller. Is AliExpress safe? People often wonder whether is AliExpress app safe for online shopping. AliExpress app is safe and allows secure payment methods while protecting user data. It also works with reputable shipping companies like DHL and China Post, so shipping is also reliable. However, due to the increasing number of third-party sellers on AliExpress, there’s always a risk of encountering bad actors. To help users stay safe while shopping, AliExpress implements a few safety measures to protect its users. What are the safety measures on AliExpress? There are safety and security features that make it safe to buy from AliExpress and help protect shoppers from scammers: Buyer protection One of the main AliExpress safety measures is buyer protection. Users shopping on the online marketplace can get help if they have any issues. This includes orders not delivered, broken items, or missing items. The AliExpress buyer protection program has a period of 15 days after your product is delivered. During this period, you can open a dispute and request a refund if you have any issues with your order. Payment handling Another security feature is payment handling. When you pay on AliExpress, you don’t pay the seller directly. Instead, you enter your payment information on AliExpress and confirm the transaction. This means that you don’t need to share your personal details with the seller or engage with them in any way. Reasons why AliExpress is so cheap If there’s one thing AliExpress is known for, it would be the ridiculously low prices that beat any Black Friday deal. Here are some of the reasons to explain why products on AliExpress are so cheap: Made in China Products made in China (PRC) often cost way less than in other regions like Europe and North America. On AliExpress, most of its products are made in countries that have low labor costs, such as China, Vietnam, and Thailand. Manufacturers can sell directly AliExpress is so cheap because factories can list products and sell them to shoppers. By cutting the middlemen, such as distributors and retailers, AliExpress allows manufacturers to offer lower prices directly to consumers. Counterfeiting Unfortunately, fake products on AliExpress are common, which is why some products can appear too cheap even compared to other sellers on the same platform. When you’re shopping on AliExpress and find a deal that’s too good to be true, chances are it’s a counterfeiting product. Other reasons There are a few tricks sellers on AliExpress do to appear cheaper than others. This includes listing tricks, misleading discounts, and other tactics. Why is AliExpress reputation so bad? There are a few reasons why AliExpress has a bad reputation and user reviews. The platform is used by over 150 million buyers worldwide, each with their own perspective and experience. When you have a very popular platform focusing on cheap products, the number of unsafe sellers and fake listings would naturally increase. Moreover, some shoppers may have unrealistic expectations. While AliExpress isn’t known for top-notch quality, it often delivers value for what you pay. Who can buy from AliExpress? Everyone can use AliExpress. The marketplace supports over 220 countries and regions. The only exception is people living in mainland China, as they have to use a different platform. In addition, a limited number of countries may not be supported by the shipping lines used by AliExpress. Buying from AliExpress is easy. The interface is simple and there are many payment methods supported. You can pay for products using credit or debit card, PayPal, bank transfers, and many others. Shop safely: How to avoid scams on AliExpress? Now that the doubts are cleared about whether is AliExpress legit or not, it’s time to learn some tips on how to shop safely. Here’s how to avoid AliExpress scams and buy from legitimate sellers: Avoid products from popular brands One of the most well-known scams on AliExpress is listing products that claim to be from popular brands like Samsung or Apple. If you’re looking for products from such brands, it’s better to buy them from your local retailer. On AliExpress, products from popular brands are often fake, especially if the deal is too good to be true. Read reviews One of the benefits of having millions of users on AliExpress is the amount of reviews you can find. If you’re on the fence about buying a product, check the reviews to see what other consumers have to say. If the product doesn’t have reviews, that’s usually a red flag. Beware of brushing Brushing scams occur when sellers create fake accounts to buy their own products and post fake reviews. To spot this scam, look for signs like reviews with similar wording, reviews posted within a short time frame, or reviews lacking detailed feedback. Always be cautious of unusually high ratings without meaningful content. Check the listing, not just the pictures One common trick on AliExpress involves showing a full product in the pictures but describing only a part of it in the listing. For example, a seller might display images of an entire speaker set, but the
DDP vs. DAP Incoterms: Which is Best for Your Business?
As the eCommerce fulfillment industry keeps growing, international shipping is now more relevant than ever. To simplify communications in global trade, businesses use Incoterms (International Commercial Terms), a set of terms used to clarify the obligations of buyers and sellers regarding the transportation of goods. Among the most popular Incoterms are DDP (Delivered Duty Paid) and DAP (Delivered At Place). So what is DDP and DAP shipping? And what’s the difference between them? Keep reading to find out. What is DDP (Delivered Duty Paid) shipping? Delivered Duty Paid (DDP) shipping is a delivery agreement between buyers and sellers. Under this Incoterm agreement, the seller bears almost all the responsibility, cost, and associated risks of transporting goods to the buyer. The responsibilities and costs include transportation, import and export customs and documentation, customs duties payment, insurance, and more. When shipping DDP, the buyer will not become responsible for the goods until they reach the agreed destination. Seller’s main responsibilities with DDP shipping When using the DDP shipping method, the seller is responsible for almost all the processes and costs related to the transportation of goods. The responsibilities are clearly defined in the Incoterms 2020 rules, which is the most recent version. This includes: Benefits of DDP shipping Delivered Duty Paid shipping significantly reduces the risk to the buyer. This is especially crucial when shipping internationally, such as from the US to the UK or any other place. In addition, using this Incoterm shipping method provides more cost transparency for the buyer. While the benefits of DDP shipping primarily support the buyer, the seller also gains an advantage. DDP can increase conversion rates, bring in more revenue, and leave the seller with full control of the process for better optimization. Disadvantages of shipping DDP The cons of Delivered Duty Paid shipping are more related to the seller. Given that most responsibilities are on the seller, there could be more unexpected costs along the way. This includes supply chain disruptions, customs delays, and short-notice regulatory changes. From the buyer’s side, DDP shipping can be more expensive as the risk is significantly reduced. What is DAP (Delivered At Place) shipping? DAP shipping is where the seller takes responsibility for costs and risks related to transporting the goods until they reach the destination, but does not include import duties and related charges. The buyer will be required to unload goods, arrange for customs clearance, and pay the necessary fees. Seller’s main obligations with DAP shipping With DAP shipping, sellers are still responsible for most of the process, cost, and risks related to transportation. In addition to documentation, licensing, and packaging, the seller under the DAP agreement is also responsible for: Buyer’s main responsibilities with DAP shipping The buyer carries some of the risks of bringing their shipment under the DAP agreement. The buyer would need to be responsible for: Benefits of using DAP Incoterm for shipping With DAP Incoterm shipping, there are fewer risks to the seller, especially when it comes to import clearance and paying related duties and taxes. This could lead to lower upfront costs for the seller. From the buyer’s perspective, DAP delivery would be cheaper as there are no additional costs. In addition, the buyer would be able to control the last stage of the shipping process after unloading, giving them more control over the process. Disadvantages of DAP shipping The advantages of DAP shipping for sellers include less control over the process and fewer services offered, which could also lead to less revenue. In contrast, the disadvantages for buyers are more related to the increased risk as they’ll be responsible for import clearance and other related charges. DDP shipping vs DAP shipping: Which Incoterm is best? Both DDP and DAP are used for different trade purposes. Deciding which is the best Incoterm shipping method depends on your business needs. Delivered Duty Paid (DDP) shipping is more beneficial for buyers who cannot afford to take on risks related to import clearance, especially new eCommerce businesses. However, if you’re more experienced in dealing with customs in the country of destination, then you may save more by opting for Delivered At Place (DAP) shipping. Let experts handle Incoterms while you focus on what matters Ecommerce sellers have a lot on their plate. Shipping, sourcing, customer inquiries, maintaining inventory levels, handling refunds… The list goes on. While it’s important to learn Incoterm like DDP and DAP, letting experienced professionals handle shipping is the ideal option. At Lansil Global, we work with local and international eCommerce brands to help them navigate fulfillment, freight shipping, sourcing, and more. If you’re looking to expand globally or want a second opinion on how to streamline your supply chain, we’re here to help! Reach out to Lansil Global today for a free consultation. Notice: JavaScript is required for this content.
What is Expedited Shipping? Meaning, Cost, and Benefits
Online shoppers today want everything fast. Priority, express, two-day, next-day, and overnight delivery are some of the words that will surely drive customers to buy more. But what about expedited shipping? This increasingly popular term refers to any shipping service that is faster than the standard shipping option. In this blog, we explain what is expedited shipping, the benefits and disadvantages, and how to make it part of your eCommerce fulfillment strategy. So let’s dive in. What is expedited shipping? Expedited shipping is a premium service designed to be faster than standard shipping. Products transported with expedited shipping options often travel from order pickup to delivery with no stops in between. The shipping speed, cost, and even the name of the service vary between carriers, so ‘expedited shipping’ can refer to 2-day shipping, priority shipping, overnight shipping, or next-day delivery. Expedited shipping vs standard shipping The best way to understand expedited shipping is by comparing it to standard shipping. Here are the key differences between the two shipping models: Speed Delivery speed is the most essential difference. Expedited delivery can be between 1 to 3 days, especially when doing USA order fulfillment where customers are used to Amazon’s fast shipping. Standard shipping is noticeably slower, taking between 3 to 10 days depending on the store and the carrier. Cost Expedited shipping is more expensive than standard shipping, way more expensive. Standard shipping, on the other hand, is on the cheaper side. Some standard delivery fees can be as low as a few dollars. In addition, flat-rate shipping is often offered only with standard options. Cutoff dates Due to the short delivery time offered with expedited shipping, cutoff dates are more common. This means the package must be picked up and dispatched before the carrier’s cutoff time to prevent delays. The cutoff times in standard shipping are less common, except for peak times like the holiday season. Benefits of expedited shipping Given the exceptional speed offered with expedited shipping, it’s to no one’s surprise that this delivery model comes with several benefits: Reduced cart abandonment rate Long delivery time is considered one of the main reasons online shoppers ditch their carts. Some data suggests that as much as 45% of customers abandon their carts due to unsatisfactory delivery experience. This can be reduced by offering expedited shipping. While some customers may not opt for it, having the options could help. Meet customer’s expectations Amazon and other prominent retailers have heightened customer expectations by making 2-day shipping the standard. While it’s not feasible to compete directly with retail giants, trying to be close to them by offering expedited shipping can help bring more customers. Increase average order value Offering the option of expedited shipping can incentivize customers to spend more, hence increasing the average order value. Ecommerce brands can do that by offering free expedited shipping when customers reach a certain threshold in their cart. Lower inventory costs Inventory costs tend to be lower for brands offering expedited shipping. This is because items are dispatched as soon as the order is placed. Offer new products Customers may wait longer for non-urgent items, but some products are needed quickly, like last-minute gifts, essential electronics, or seasonal apparel. With expedited shipping, you can introduce these time-sensitive products and tap into a new customer base. Disadvantages of expedited shipping Expedited shipping requires much more resources than standard shipping to always deliver on time. Here are some of its disadvantages: High cost High cost is the main disadvantage of using expedited shipping. Making sure every item is dispatched on time and delivered to its destination increases the order fulfillment cost significantly. The price of expedited shipping services from carriers varies widely, but they go as high as $100 sometimes. Limited availability Expedited shipping doesn’t reach all areas. Typically, it’s available in densely populated cities where residents live in close proximity. For remote locations and sparsely populated towns, standard shipping may be the only feasible option. Best expedited shipping services Express shipping is particularly popular in the US. Most big carriers offer their own expedited shipping option with different names, prices, and speeds. Here are the most popular expedited shipping services in the US: USPS expedited shipping USPS is among the most popular options for expedited shipping services. Its main express delivery option is called Priority Mail Express, which guarantees next-day to 2-day shipping with rates starting from $24.7. FedEx expedited shipping FedEx, the carrier that started its business by promising faster delivery, has several options for expedited shipping. This includes FedEx First Overnight, FedEx Priority Overnight, and FedEx Standard Overnight. UPS expedited shipping UPS also offers a wide variety of expedited delivery services. This ranges from next-day to 3-day shipping options across the US. The price and weight limits vary per service, so if you’re not sure which service to choose, you can consult with your 3PL to guide you through this. How to offer expedited shipping in your eCommerce store? Expedited shipping might not be the first choice for most of your customers, but having it as an option could be beneficial. However, deciding to offer express delivery to your customer might be a resource and time-consuming. The most ideal way to incorporate expedited shipping is by consulting a US fulfillment company if you’re in the US or a local 3PL in your country. If you’re looking for an eCommerce fulfillment company that can help you speed up your delivery times, Lansil Global can help. We have fulfillment centers in Nevada and Pennsylvania that can help distribute your inventory and be near your customers to offer cost-effective expedited shipping. Want to know our shipping rates? Reach out to us today by requesting a free quote. Notice: JavaScript is required for this content.
Source Better: Top 5 Ways to Find Suppliers in China
China today is the world’s go-to destination for product sourcing. There is an abundance of suppliers that can produce anything, from toys and apparel to consumer electronics and more. But finding those Chinese suppliers is no easy feat. Businesses need to invest time and effort into finding a reliable manufacturer to deliver quality products at competitive prices. Here are the top 5 ways to help you find and verify suppliers in China. One of the most popular ways to find China suppliers is by going to meet them. Every year, many China trade shows and events take place across the country. Here are some key trade shows to mark your calendar: The Canton Fair The Canton Fair is the largest trade show for Chinese suppliers. Taking place twice a year in Guangzhou, the fair brings together thousands of buyers from around the world. Given its sheer size, the Canton Fair is divided into three phases. Each phase showcases different product lines: Attending the Canton Fair is free, but you need to be prepared in advance. Sales representatives speak basic English, so you can only know a few details like the MOQ and price. You may be able to find Chinese translators or interpreters, but given the high demand during the event, you need to book them in advance. Yiwu Market Yiwu Market is a famous wholesale market in China. It’s located in Yiwu, a Chinese city and home to various vendors. You can find thousands of shops offering products like textiles, bags, and footwear. Yiwu Market may be a good choice if you’re looking to source cheap products at not-so-great quality. In addition, most of the shops there are trading companies and wholesalers, not China manufacturers. Other trade shows There is a wide variety of trade shows where you can find China suppliers. Not all these events are in China. You can attend global trade shows in other parts of the world, such as the US, Europe, and the Middle East. Online marketplaces are websites that help you find lots of China suppliers and wholesalers. Alibaba, the website pioneering this business model, has grown in popularity in recent years. But Alibaba isn’t the only sourcing site. Other competitors have emerged, including Made in China, and Global Sources. Using these marketplaces is easy, but finding a reliable China supplier is a never-ending challenge. The websites are full of middlemen, trading companies, and wholesalers posing as manufacturers and suppliers. On top of that, scammers are always on the lookout to exploit unwary buyers. Finding a reliable supplier is just the beginning – you’ll need to negotiate with the supplier to reach a fair agreement and establish a long-term relationship for future orders. Google search can help as well. Search for specific keywords like “Toy manufacturers in Shenzhen” to get better results. However, keep in mind that many manufacturers don’t even have their own website. Even the ones that have websites may not appear on Google or may not be in English. For more search results, try using Baidu, China’s main search engine. Translation tools may help you navigate Baidu, but be wary of trading companies and middlemen trying to pose as suppliers. China sourcing agents are individuals who have experience in connecting buyers with suppliers. They are often found on freelance websites like Fiverr. These sourcing agents can be a fast and cost-effective way to source products and find China suppliers. However, working with sourcing agents has quite a few disadvantages. They work on a very small scale, have a limited supplier network, and may be based outside China. In addition, given the fact that agents are independent professionals and not companies, some of them may be less accountable for sourcing issues that may arise. You’ll find some similarities when comparing China sourcing agents with sourcing companies. Unlike individual agents, a sourcing company is an established business that specializes in managing supplier communication, placing purchase orders, and negotiating the best deals on your behalf. These companies are usually based near major manufacturing hubs like Shenzhen, employing a team of sourcing professionals, often referred to as purchasing managers. They offer an ideal way to find suppliers in China and get your hands on quality products at a fair price. While their service fee may be a bit higher than agents, they can secure cheaper prices, which will offset the higher fees. Many sourcing companies also provide added services to streamline the entire process. This includes in-house quality control, order fulfillment, freight forwarding, and even credit terms. Looking for a China supplier can become a full-time job, especially if you’re an established eCommerce business looking to source new products. Even after spending weeks learning and researching about the product sourcing process, you may still be unable to find what you’re looking for. To better understand the sourcing business, it’s good to start by requesting quotes and free consultations from sourcing companies to see what they offer. As a China sourcing company, Lansil Global specializes in connecting eCommerce brands with trusted suppliers across China. In the past 9 years, we have developed a network of 2,000 suppliers across China’s top manufacturing hubs. If you’re looking for reliable suppliers, we’re here to help! Our sourcing rates can beat Alibaba’s by more than 10%. Reach out to us today and request a free quote to learn more. Notice: JavaScript is required for this content.
Minimum Order Quantity: Definition, Benefits, and Tips to Optimize Your MOQ
Learn everything about minimum order quantity and how to improve your MOQ strategy with this comprehensive guide Having the right amount of inventory is integral to any eCommerce business. When it comes to product sourcing, especially from China, online retailers often struggle to figure out how much they need to order. This is because suppliers and factories require a minimum amount of products they’re willing to sell, which is called minimum order quantity (MOQ). If you’re looking to source from China or anywhere else, it’s important to understand what MOQ means and how to optimize it for your eCommerce business. So let’s dive in! What is minimum order quantity (MOQ)? Minimum order quantity (MOQ) refers to the minimum number of units a supplier is willing to sell in a single order. In recent years, the term has become more associated with suppliers and manufacturers who set MOQs for selling products to eCommerce businesses. Therefore, the best way to explain MOQ is with an example: You’re a retailer looking to source bags for $5 each. The supplier you found has an MOQ of 1,000 units. So this means the supplier won’t accept your order unless you buy $5,000 worth of these bags. However, keep in mind that suppliers often have different MOQs that suit different products. So if you were sourcing another bag that costs $30, the supplier may have an MOQ of 300. Types of MOQs Minimum order quantities are set differently depending on the supplier and the product. Here are the main types of MOQs you need to know: Simple MOQ Simple MOQ is when the supplier sets a minimum number of units to be purchased or a minimum amount to be spent. If a supplier’s MOQ is 10,000 units or $20,000 worth of items, this is considered a simple MOQ. Complex MOQ Complex MOQ is when a factory sets multiple conditions for an order. Instead of just asking for a minimum number of units, they may also require a minimum spending and minimum order on certain products (SKUs). For example, a factory might ask for at least 10,000 units, a total order value of at least $20,000, and a minimum of 1,500 units of a specific SKU in that order. Why do suppliers use minimum order quantity? While MOQ is something most eCommerce sellers don’t like, suppliers and manufacturers need to use it to build a sustainable business. Here are a few reasons why suppliers set minimum order quantities: – Covering production cost: Manufacturing some products may require a substantial investment from the factory. In most cases, production costs decrease when the order volume increases. If the order volume is below a certain level, the factory may lose money. – Increase profit margins: Selling more results not just in earning more but in higher profit margins as well. – Inventory management: Some suppliers may have white-label products already produced in high quantities and are sitting on the shelf taking inventory space. Suppliers may require brands to purchase more in order to free up inventory. – Targeting a specific customer segment: Some suppliers set a high MOQ so they can only deal with medium to large companies, as smaller businesses often avoid suppliers with high MOQs. – MOQ from raw material suppliers: When a factory needs to produce something, they also need to purchase raw materials and other components from other suppliers. These raw material suppliers may require an MOQ as well. Benefits of minimum order quantity MOQ exists for many reasons. When sourcing products from China specifically, there are a few benefits for both supplies and eCommerce businesses. MOQ benefits for suppliers: MOQ benefits for buyers (eCommerce brands): How do MOQs impact inventory? High MOQs and low MOQs can greatly affect how eCommerce businesses manage their inventory. This includes storage costs, cash flow management, and how to split stock across multiple warehouses. High MOQs Working with a supplier that requires a high minimum order quantity means you need to order a large amount of stock. Ordering more may put more pressure on your cash flow and require you to allocate more inventory space. At the same time, high MOQs help you secure better deals with lower prices. You may also benefit from lower administrative costs as you won’t need to place an order more frequently. In addition, shipping in bulk also means you’ll get better shipping rates. Low MOQs Low minimum order quantity is what almost all eCommerce brands look for. When considering inventory, ordering a small amount of items can save warehousing costs and unlock more cash flow. However, low MOQs have a fair amount of disadvantages. Ordering from low MOQ suppliers means you’ll be paying higher prices, ordering inventory more often, and increasing administrative costs. In addition, shipping costs will be higher per item when your order is always small. 4 steps for eCommerce brands to calculate MOQ If you’re unsure how much MOQ you should have, here are 4 steps to get you started: The first step is to determine how much demand you will be expecting. To forecast demand, take into account multiple factors, including product type, seasonality, and price. Always refer to previous sales data to give you more clarity on future demand. The cost of holding your inventory can vary widely depending on the product type and how much you’re stocking. Whether you use a fulfillment center or a warehouse, remember that holding costs can significantly affect your margins. For eCommerce brands, the break-even point is the per-unit price that results in no profit or loss. Understanding your break-even point is crucial to deciding from which supplier you will place a purchase order. If the price the supplier is offering is way above your break-even point, then you need to look for another one. Now that you have all the above ready. It’s time to calculate your MOQ. Let’s say your business has the following: If you source and store this shipment, it will cost you 9 + 1 = $10
Understanding Flat Rate Shipping: Benefits, Costs, and Best Practices
Discover how flat rate shipping works and when to leverage it to save time and money and optimize your order fulfillment process In eCommerce where delivering orders is the backbone of the industry, optimizing your eCommerce fulfillment and shipping strategies is integral to your business. Figuring out how to calculate delivery costs can be a hassle. Weight, dimension, and restrictions make it difficult to know how much to charge. But in some situations, flat rate shipping can save you time (and money) by offering a simple and predictable pricing model. So what is flat rate shipping? Keep reading to learn the benefits, costs, and best practices of flat rate shipping for your eCommerce business. What is flat rate shipping? Flat rate shipping is a shipping type where the cost is determined by the package rather than the dimensions or weight. This shipping method has a limitation on the size and weight of the box, so any package that doesn’t exceed that limitation is charged a flat fee. Many eCommerce businesses utilize flat rate shipping to simplify the process and easily calculate costs and delivery times. Almost all private couriers offer a flat rate shipping service, but they often have different limitations and prices. For example, USPS offers a shipping service called Priority Mail Flat Rate. This service charges a fixed price on packages weighing up to 70 lbs with combined length and girth not greater than 108 inches. Flat rate shipping vs standard shipping: Key differences Flat rate shipping and standard shipping are both used by eCommerce businesses to deliver packages. Here’s a look at the key differences between both shipping types: Cost This one is pretty much self-explanatory. Flat rate shipping services charge a fixed fee for certain packages that meet the weight and size set by the courier. So for USPS Priority Mail Flat Rate, they take a fixed fee but don’t charge for additional services such as fuel surcharges and package pickup. For comparison, let’s take a look at USPS’s standard shipping service: Ground Advantage. This service takes the package weight into account to determine the final price. Delivery time Flat rate shipping has a flat delivery time too! Due to the standardized process, it’s much easier to know what’s the expected delivery time for packages sent with flat rate shipping. USPS Priority Mail Flat Rate delivery packages across the US within 1 – 3 business days. Standard shipping, however, can be faster or slower than flat rate shipping, depending on the package and the courier. USPS Ground Advantage, for instance, offers 2 – 5 business days for delivery. Coverage area Flat rate shipping services often have a specified coverage area. If the area is within California, for example, the shipping price won’t change whether the destination is San Diego in the south or Eureka in the north of the state. The same doesn’t apply to standard shipping, as the price can vary widely based on the destination. Prohibited items Due to the limitations of flat rate shipping packages, it often doesn’t support all types of items. For example, items classified by USPS as “hazardous materials” cannot be accepted for the Priority Mail Flat Rate service. If you need to ship these restricted items with USPS, you need to use standard shipping methods like Ground Advantage. Benefits of flat rate shipping Flat rate shipping offers a wide range of benefits for eCommerce brands, including: Simplified process: Flat rate shipping is straightforward. If you have items that have similar weights and sizes, you won’t need to spend much time calculating shipping costs. Cost-effectiveness: Large packages can be shipped at a lower rate and without additional charges. Transparency: With a set cost and delivery time, customers know exactly what to expect, leading to a better shopping experience. Predictability: With flat rate shipping, there won’t be any surprises in costs and delivery times, allowing you to better plan your eCommerce fulfillment strategy. Disadvantages of flat rate shipping Given the unique pricing model of this shipping method, it has drawbacks as well. Here are some of its disadvantages to keep in mind: Might get expensive (sometimes): Flat rate shipping may not offer low rates for smaller packages or nearby delivery addresses. High customer expectations: The fixed delivery time is a double-edged sword. If an order is delayed, even slightly, it may lead to dissatisfaction since customers expect their order to arrive as promised. Limited coverage: Flat rate shipping may not cover as many locations as standard shipping. Not all items are supported: Most flat rate shipping services have restrictions on the types of items that are accepted. What couriers offer flat rate shipping? Almost all couriers offer flat rate shipping services. However, each service has different features, limitations, and prices than the other. Top flat rate shipping services in the US with their delivery time: Courier Shipping Service Delivery Time (Business Days) USPS USPS Priority Mail Flat Rate 1 – 3 FedEx FedEx One Rate 1 – 3 UPS UPS Simple Rate 2 – 3 Should eCommerce sellers use flat rate shipping? Flat rate shipping can be very helpful for enhancing your eCommerce fulfillment operations. But to utilize this shipping method to the fullest, you should be selling a lot of items that are similar in size and weight. In this case, you can save more time (and potentially money) by opting for a flat rate shipping service that fits your needs. There are a few instances where you need to avoid flat rate shipping, however. If your customer base is spread across a very large area, the limitation of flat rate shipping would be challenging. In addition, if you have a wide variety of items that are not similar in dimension and weight, opting for flat rates may not be cost-effective or time-efficient. Still not sure about your shipping strategy? Perfecting shipping can feel like a never-ending challenge, but it doesn’t have to be. As an eCommerce brand, your focus should be on what you do best – growing
