China is one of the largest markets for cross-border trade. While China enjoys a steady stream of demand, some US retailers are cautious about jumping on the bandwagon, fearing slow order delivery times. To help interested retailers buy Chinese products in bulk, this article summarizes some of the most commonly used shipping methods.
Wholesale order lead time
The order delivery time is defined as the time that elapses between the receipt of the customer’s order and the 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 the distributor to purchase and prepare merchandise from a customer. Shipping time is the time it takes for the order to arrive once processed.
Courier services
A courier service is defined as a company that delivers messages, packages, and mail and is known for its speed, security, tracking service, and expertise. This service is recommended for retailers who have smaller orders and value fast shipping.
1) Standard Shipping: Shipping methods like China Post and ePackets are considered standard shipping methods in China. They offer the security and tracking services that couriers are known for at a lower price. The only downside is that the shipping speed is a bit slower than that of express couriers. In fact, e-packets tend to 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: Couriers like Fedex, UPS and DHL offer fast and trackable shipping. Average shipping time for Fedex, DHL and UPS is 5-8 business days. However, these couriers are more expensive than China Post and ePackets.
Air freight
For retailers with slightly larger shipments or products, air freight is available. Air freight is almost as fast as courier shipping. It has an average shipping time of 2 to 10 days. Some large retailers that specialize in smaller products opt for air freight. However, air transport is subject to customs clearance. Customs clearance can lead to delays, fines, and even loss of cargo.
Maritime transport
Retailers who need large quantities of products often benefit from shipping. Cargo ships can transport large quantities of goods at a lower cost than air transport. Retailers that specialize in cumbersome products often prefer ocean freight. One drawback of shipping is long shipping times. Sea freight shipping time from China can take up to 60 days. A second drawback of shipping is customs clearance. Customs clearance can significantly slow down shipping. Like air transport, it can also pose a financial problem in the form of fines and import taxes. Some customs agents loot shipments to search for illegal goods. 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 have stock in their store can benefit from drop shipping. The supplier handles the shipping aspects and the retailer pays the products / shipping fees. However, drop shipping is not a perfect model. Some vendors can spoil orders and the retailer faces customer backlash.