Knowledge about China Conocimiento sobre China
By Korbin | 24 June 2019 | 0 Comments

How to Reduce Shipping Cost When Buy from China

                                                                               How to Reduce Shipping Cost When Import from China

As we all know, China is the second largest economy in the world and has a huge manufacturing capacity. It is called the "world factory." Today, China has become the preferred source of procurement for millions of business startups, especially Amazon sellers who like to purchase in China and ship to Amazon warehouses with the help of Chinese agents.
 
There is no doubt that you must have all budget when buy from China, including sample cost, product cost, shipping cost, marketing cost, etc. If you don't have an accurate cost budget, your purchase is likely to exceed the budget, which will result in your loss of money. For all of these budgets, you can reduce them to get greater market competitiveness through specific strategies.
 
If you run your own logistics independently, shipping costs are one of the key factors you must consider. You must be aware that sometimes your shipping charges may be higher than your product price. The more you reduce your shipping costs through specific strategies, the more your business can be benefit. Therefore, you must analyze all possible shipping costs and get the best shipping price through specific strategies.
 
How can I reduce shipping costs? This must be your most doubtful question. Don't worry, we will use the following helpful suggestions to explain in detail, please continue reading.
 

1. Plan product shipping
When importing from China, everything should start with a plan, and so is your shipping business. An effective shipping plan should be with: a clear understanding of the scope of business, accurate quantity or volume of goods and frequency of transportation. This clear plan will help you negotiate with freight forwarders.
 
Knowing everything is your best practice before international shipping. The questions you must consider when planning your shipment are: Incoterms, product destinations, shipping lead time, possible routes, order size, etc. You can arrange the shipment before the item is fully produced. Develop a sustainable and effective shipping plan will ultimately benefit your business.
 
Route planning is a key part of the shipping plan. As we all know, there are many routes for shipping goods, and also have many charges and risks. What you need to do is find the safest and most cost-effective way to reduce shipping costs. If it is an EXW trade clause, your product still needs inland transportation, which requires you to have good control over everything. You can choose to ship it directly or through a Chinese agent to make it efficient and time-saving. As we all know, the value of Chinese agents is to help you plan and optimize shipping routes to reduce your shipping costs.
 

2. Choose the right shipping company
Importing from China is a complicated process, especially the shipping process. You must identify a relevant and reliable shipping company to provide you with the best service. In addition to shipping safety factors, you must also consider the factors of costs. Quality shipping companies rely on their long-term cooperation with airlines or ocean companies to get first-hand shipping quotes, and they also offer you a large number of regular shipping discounts or special offers. These special service will help you reduce shipping costs.
 
Quality shipping supplier will help avoid international shipping risks and high costs. To find the right overseas shipping service supplier, you must take the time to review the relevant company one by one. Comparison is a good way to find out the right shipping supplieryou can find discounted prices by comparing different suppliers.
 
You can compare the shipping costs and different advantages of different shipping companies based on your shipping destination, product materials, order size, shipping date, tracking service, insurance and other data. In fact, the quotations of different shipping companies will vary big, even you ask the same company. Getting a quote is easy for you, but you have to make sure that he is truly low risk, because unreasonable low prices may be at risk of fraud. By comparing the prices and expertise of different suppliers, you will get the most competitive supplier. If you still can't get it, you can use the online shipping calculator to evaluate the shipping cost based on your needs.
 
Once you have chosen your shipping supplier, you can establish a business relationship with them and start your international business. Remember that establishing a long-term strategic relationship is a safety guarantee for your imports from China, which will be important in the long-term.
 

3. Optimize packaging
In general, shipping costs are based on the weight or volume of your goods. If you are overpacked or oversized, you will pay for extra unnecessary shipping cost. Extra packaging wastes your cost budget and increases the volume of packaged goods. To save costs, there are steps you can take to optimize the packaging of your product.
 
At this point you must understand the concepts of FCL (complete container loading) and LCL (less than container loading). If your cargo can fill the entire container, you can use the entire container yourself, which is the full container. Typically, FCL shipping costs are on average 30% to 40% less than LCL shipping. However, if your cargo is not enough to fill the entire container, you'd better choose LCL. To use the most of the container space, your items will share a container with other people's products when shipping in LCL. The cost of LCL may be much higher than FCL, and there are additional costs to pay when shipping overseas. However, it is still the most cost effective for a small number of shipping items. This container space depends to a large extent on how much cargo you are shipping.
 
In addition, you can save money by consolidating shipping projects. You can combine different items so that they can fill a single container. This will result in a cheaper shipping cost. You can do this through the Chinese agent's warehouse. In addition, there may be dangers during shipping and it must be ensured that it is properly packaged. Optimizing product packaging is a complex art,  you will benefit when you take good use of it.
 

4. Choose the right container
Knowing the size of the container allows you to make better choices. For FCL, there are usually 4 types of containers to choose from.
 
FCL 20 feet
 
FCL 40 feet
 
FCL 40 feet HQ
 
FCL 45 feet HQ
 
How to choose the right container for your item? Usually you need to know the weight and volume of your product, and then choose the right container according to the weight and volume. In addition, you can adjust the order quantity according to the size of a specific container to avoid the lack of space caused by the goods, or the waste of space caused by too little goods.
 

5. Get freight insurance
Freight insurance refers to the safety insurance for the shipping process. If there is any accident during the shipping and you have never purchased the relevant insurance, it will be a huge loss. Remember to tell your shipping supplier about insurance requirements and negotiate with them for the best price.
 
Sometimes insurance is included in Incoterms. For example, Incoterm  CIF (Cost Freight and Insurance)  already includes insurance. However, if you use other Incoterms (such as EXW, FOB), you should consider buying insurance. Under normal circumstances, the cost of freight insurance will not be very high. You can pay after asking your shipping supplier.
 

6. Increase shipping lead time
Shipping lead time is refers to how long it takes to get your products from China to your hand. This means that time is critical to your business and shipping costs, and if your product is delivered for a long time, you must place an order in advance. For example, you plan to receive an item by April, but you must book a delivery order a few months in advance. In general, the lead time includes:
 
When the goods are being shipped
The time before the goods are loaded into the port (up to 1 week)
Administrative delays in the two ports
Other possible delays
 
Given the unpredictability of marine shipping, you can increase the delivery time when ordering for more flexible processing time. The longer the notification time, the more efficient the operator is behind the scenes. This is to improve utilization and reduce costs.
 

7. Shipped during off-peak hours
As we all know, shipping delays are very common during peak periods. The peak period will lead to more delays and higher shipping costs. Avoiding peak or earlier shipments will bring you considerable savings. If possible, you can try to avoid peak hours and holiday congestion.
 
In general, Friday is usually a non-peak day because most customers try to get their items on Tuesday. For non-consumer products, this is a very high shipping method that can lower your costs. This tip is optional. You must decide whether it applies to your business based on the type and function of the product.
 

8. No unnecessary charges
Due to improper handling of documents or untimely delivery of documents, you may be charged an unnecessary demurrage or detention fee at the POL or POD. Even more frightening is that these costs can be very high, and you may be forced to abandon your goods and leave them at the port during customs clearance. To avoid such costs, remember to properly implement your shipping process and comply with regulations and rules to streamline your business. This is how you can control your shipping costs.
 

9. Don't classify everything as urgent 
Many buyer typically urge their shippers to deliver their items as early as possible without regard to the actual urgency of the shipment. The sooner they get the goods, the better they will feel. However, urgent shipping orders can result in high transportation costs.
 
Emergency shipping orders will makes you to pay more for the shipper without knowing this. You are just immersed in order fulfillment and ignore such additional costs. We recommend that you carefully plan and manage your business schedule to reduce the occurrence of urgent shipping orders. Often, if your business does have an emergency, make a decision after thoroughly analyzing your actual needs.
 
If you import from China, we hope to provide some useful advice for your shipping arrangements. If you have any questions, please leave us a message and we will be happy to discuss it with you and contribute to your business.
 

 

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