Pain points of cross-border logistics in Southeast Asia
Southeast Asia is the fastest growing cross-border e-commerce market in the world. Southeast Asian cross-border logistics companies with fixed businesses have professional local knowledge, which can speed up customs clearance and distribution, provide more affordable logistics costs, and ensure more effective customer service. Even so, there are still pain points in cross-border logistics in Southeast Asian countries. How can we solve them?
First, the customs regulations are complicated. The customs regulations of Southeast Asian countries are inconsistent, and the information is changeable and opaque, leaving businesses in a state of confusion. Solution: Establish an exclusive system for Southeast Asian customs to make the overall customs declaration process smoother through the identification of goods and the adoption of the HSCode customs universal code; at the same time, we also help merchants to master it through the irregular publication of the Southeast Asian Customs Clearance Manual The latest customs declaration regulations such as tariffs and restricted items.
Second, parcels are difficult to track. Traditional Southeast Asian logistics providers have local service levels, but many links are performed offline: the delivery details of logistics are handled through telephone and email communication. Solution: Cooperate with technology companies to provide systematic solutions to local logistics partners to make the information of parcel delivery transparent.
Third, the geographical scope is vast and the service level is different. In order to serve some customers located in rural areas or areas with underdeveloped transportation, logistics companies must charge higher freight. Solution: Subdivide the level and rate of logistics to the level of postal code. On the one hand, it helps merchants calculate more accurate freight costs. On the other hand, it is automatically assigned to the most efficient logistics partner through our system.
Fourth, there is a lack of a unified logistics warehousing management system. There are many freight forwarders or logistics companies operating individual dedicated lines in China. In order to save logistics costs on each route, merchants may choose to cooperate with multiple logistics companies at the same time, resulting in contact and distribution There is a lot of complexity. Solution: Create a complete logistics network system, whether through API or self-built backend, to help merchants manage all logistics routes in Southeast Asia in one stop.
Fifth, local payment methods. The Southeast Asian market is still in its infancy in terms of electronic payment infrastructure. Consumers who are accustomed to cash transactions and who have just started using e-commerce platforms still lack confidence in online payments. Cash on delivery may not be the most effective and secure payment method for e-commerce transactions, but it is one of the most feasible expedients in Southeast Asia. High-quality local cross-border logistics companies in Southeast Asia can provide smooth cash on delivery services, increase product sales, and bring greater profit margins to cross-border e-commerce.
In the future, cross-border logistics companies should be able to provide integrated services, including warehousing, cross-border transportation, "last mile" distribution, and assist merchants to put products on major e-commerce platforms. Such a comprehensive logistics company will be the development trend of the future market. E-commerce and logistics are interdependent. When a good cross-border e-commerce logistics can be established, it will also promote the development of the regional e-commerce environment.
