China is one of the largest markets for cross-border trade. While China is enjoying a steady stream of demand, some US retailers are wary of jumping on the bandwagon fearing slow order lead times. To help interested retailers get Chinese wholesalers, this article summarizes some commonly used shipping methods.
Lead time for bulk orders
Order lead time is defined as the time between receipt of the customer’s order and delivery of the merchandise, according to the International Journal of Operations and Production Management. This means that the delivery time of the order is made up of the processing time and the shipping time. Processing time is the time it takes for a distributor to acquire and prepare a customer’s merchandise. Shipping time is the time it takes for your order to arrive after it has been processed.
Courier services
A courier service is defined as a company that delivers messages, packages and correspondence and is characterized by its speed, security, tracking service and specialization. This service is recommended for retailers who have smaller orders and value fast shipping.
1) Standard Shipping: Shipping methods such as China Post and ePackets are considered Standard Shipping Methods in China. They offer the security and tracking services couriers are known for at a lower price. The only drawback is that the shipping speed is a little slower than express courier services. In fact, ePackets usually take 7-12 business days to arrive. China Post packages tend to take an average of 10 to 20 business days, according to Business Insider.
2) Express Shipping: Courier services like Fedex, UPS and DHL offer fast and trackable shipping. The average shipping time for FedEx, DHL and UPS is 5-8 business days. However, these courier services are more expensive than China Post and ePackets.
Airfreight
For retailers with slightly larger shipments or products, air freight is available. Air transportation is almost as fast as the courier. It has an average of 2 to 10 days of shipping. Some large retailers that specialize in smaller products opt for air freight. However, air freight is subject to customs clearance. Customs clearance can result in delays, fines, and even loss of cargo.
maritime transport
Retailers that need large quantities of merchandise often benefit from shipping. Cargo ships can transport large quantities of goods at a lower cost than air freight. Retailers that specialize in cumbersome products often prefer shipping by sea. One drawback of shipping is the long shipping times. Shipping time for ocean freight from China can take up to 60 days. A second drawback of shipping is customs clearance. Customs clearance can significantly slow down ocean freight shipping. Like air transport, it can also pose a financial problem in the form of fines and import taxes. Some customs agents will loot shipments to search for illegal merchandise. Most of the time, customs agents will not repackage looted goods. The retailer is forced to cover the costs of repackaging.
Direct delivery
Drop shipping means providing products by direct delivery from the manufacturer/wholesaler to the customer. Retailers who do not want to keep stock in their store can benefit from drop shipping. The supplier handles the shipping aspects and the retail country for the products/shipping rates. However, drop shipping is not a perfect model. Some vendors may mess up orders and the retailer faces backlash from the customer.