The stability of logistics can significantly contribute to the development of the supply chain. Therefore, many sellers hope to maintain stable logistics, so that their price costs can be controlled and they can ship with peace of mind.
However, many new sellers often find that their logistics costs suddenly increase during the process of shipping, with varying degrees of increase. Some have increased by more than 15%, and some even by 20%. Initially, these sellers thought that the service provider had miscalculated the weight or confused the goods. However, after checking, they found that the increase was due to their own incorrect measurement of the products. This almost delayed the shipment.
1、Why Does Logistics Fee Suddenly Increase?
Subsequently, sellers inquired with logistics companies and learned that the reason for the sudden increase in costs was that their products contained volumetric goods, which needed to be priced according to volume. The data measured by volume was greater than the data measured by weight by the sellers themselves, resulting in increased costs.
Among these sellers, some said that their products were in a hot selling period, so in order not to delay the listing, they directly paid the extra money to ship them out. There are also a few who chose to ask their peers for advice and then ship the goods when they had a better solution.
In fact, such incidents frequently occur in the industry. For example, sellers of home furnishings may easily have differences in cost estimation with logistics companies due to the large volume of items such as quilts and pillows in home furnishings. Some sellers said: "Products classified as volumetric goods may increase logistics costs by about 10%, and sometimes even higher, exceeding 20%."
Volumetric goods refer to goods whose volume is greater than their actual weight, but different logistics service providers have different definitions of volumetric goods. Common express delivery services calculate volumetric goods by dividing length * width * height by 5000, while dedicated lines calculate volumetric goods by dividing length * width * height by 8000. If the resulting data is greater than the actual weight, it is defined as volumetric goods.
In response to this, some sellers and logistics companies believe: "It's normal for some newcomers to be less knowledgeable. However, sellers of volumetric goods will pay more attention to preparation and shipping in the early stages than others. If they don't plan well, the initial investment will be quite substantial." Some sellers also said that personally, when shipping, they didn't have a good calculation plan for volumetric goods vs. heavy goods, but there was more or less a plan.
In addition, some sellers added: "When shipping such goods, it depends on the general market price. If the seller's products are priced higher and the sales are still good, then there is nothing to fear about increasing shipping costs, after all, income can offset it. Conversely, if the products have lower profits, then the cost of investment naturally increases."
In such cases, for sellers who can promptly identify problems and adjust their plans, they can reduce corresponding costs to a certain extent. However, for sellers whose "product profits are low, and shipping costs are high," sometimes the products they sell become gifts, affecting sales performance.
2、How to Alleviate the Cost Pressure of Volumetric Goods?
Due to varying volumetric ratios among different logistics service providers, there exist differences in charges. To reduce costs, sellers of volumetric goods have adopted several corresponding measures.
For example, most sellers of volumetric goods usually choose to combine volumetric goods with heavy goods to maximize the use of limited space, avoiding any waste of resources. Additionally, some sellers may opt for multi-channel transportation, such as sea and air combined shipping, to comprehensively control costs...
However, since sellers of volumetric goods have different product categories and weights, their choices of corresponding logistics services vary. Furthermore, given the uneven quality of logistics service providers in the market, sellers tend to be particularly cautious when selecting logistics partners, conducting comprehensive comparisons of quotations and service scopes provided by different logistics companies.
From market feedback, the most concerning issues for sellers currently include: the reputation of logistics providers, delivery efficiency, price advantages, volumetric ratios, and service levels. After comprehensive comparison, sellers will finalize their cooperation partners. Currently, some well-established logistics providers remain the best choice for sellers. Among them, JiaYou International, with over 20 years of industry experience, has built a good reputation in the industry.
Established in 2016, JiaYou International is an integrated supply chain logistics service provider with end-to-end fulfillment capabilities from China to Canada/Canada to China. It is committed to providing customers with one-stop cross-border supply chain solutions, including collection, warehousing, customs declaration and inspection, cross-border transportation, customs clearance warehousing, distribution, e-commerce after-sales, etc.
The company is headquartered in Shenzhen, China, with 12 branches established at home and abroad, including Guangzhou, Shanghai, Yiwu, Qingdao, Hong Kong, and overseas branches in Vancouver, Toronto, Montreal, Edmonton, Calgary, Ottawa, and other major port cities.
In May 2024, JiaYou International launched a special discounted volumetric goods line to Canada for domestic sellers. It is understood that this special line is a trackable small parcel logistics product from China to Canada. The first leg uses international flights directly from Hangzhou to Vancouver, which is also the first Hangzhou to Vancouver all-cargo flight, featuring stable flights and sufficient frequency to provide better logistics services to sellers.
Compared with other express services charging based on 4500, 6000, or 9000, this special line calculates volumetric ratio at 1/18000, offering significant advantages. The delivery time is 7-10 working days, with a delivery success rate of 99.7%.
Taking A goods as an example, if the dimensions of the goods are 60, 20, and 15 respectively, the charging weight via ordinary channels (60*20*15/6000) is 3KG, while the charging weight via the volumetric goods channel (60*20*15/18000) is 1KG, showing a significant cost-performance advantage. For sellers transporting oversized volumetric goods, it can save a lot of costs, meeting the current practical needs.
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Official Account: Cross-Border E-commerce Logistics Baixiaosheng