Tips to reduce 20% export shipping costs for SMEs

1. Packaging Optimization

Size and weight are two factors that determine shipping rates. A small mistake in packaging can cause a business to pay for "air".

• Use suitable packaging:Eliminate excess space in the carton. Use lightweight cushioning materials such as airbags instead of heavy foam.

• Knocked Down product design (KD - Knocked Down):If possible, design products that can be disassembled to reduce volume (CBM) when baled.

• Pallet Optimization:Arrange goods to maximize the floor area of ​​the Pallet and the height of the container.

• Apply the formula to calculate converted weight:Always calculate between actual weight and volumetric weight ($Length \times Width \times Height / 5000$) to adjust packaging for the most benefit.

2. Choose a shipping method suitable for the B2B model

Whenexported through Alibaba, flexibility between transportation methods will help save significant budget.

• Sea Freight for wholesale goods:This is the advantage of the B2B model. If the order is large, give priority to LCL (loose container) or FCL (full container) instead of express delivery.

• Multi-modal delivery:Combine sea and land, or sea and air (Sea-Air) to balance cost and time.

• Using Alibaba Logistics services (Alibaba Logistics):When operating onAlibaba Vietnam, businesses should take advantage of the platform's integrated shipping solution packages. Alibaba often has agency contracts with major shipping lines, helping SMEs get better prices than contacting themselves.

3. Take advantage of international trade conditions (Incoterms 2020)

Understanding Incoterms helps you better control costs and risks. Many new businessesopen stallUsually choose EXW because of simplicity, but this is not necessarily the most economical way.

• Convert from EXW to FOB:When selling at FOB price, you proactively choose domestic transport units and customs clearance agents in Vietnam, helping to control export costs.

• Consider CIF/CFR conditions:If your business has stable export output, you can negotiate good prices with Forwarders in Vietnam and profit from the shipping fee difference when quoting prices to customers.

• Negotiate local charges:Compare the loading and unloading fees and documentation fees of many different Forwarders before signing the contract.

4. 5 "golden" strategies to cut costs for SME businesses

Below is a list of practical actions that expertsConsulting on opening a stallUsually recommended:

• Consolidation:Instead of sending many small shipments, negotiate with customers to consolidate into one large shipment. The cost per unit of product will decrease sharply as output increases.

• Schedule early delivery:Avoid booking close to the train departure date. Booking 2-3 weeks in advance helps you avoid "sold out" situations and peak fees.

• Take advantage of bonded warehouses:If you have a large number of customers in one region (for example, the US or EU), consider shipping bulk goods to a bonded warehouse in that region to reduce retail shipping costs from Vietnam.

• Using logistics management software:Track your order journey to avoid costs incurred due to document or warehouse delays (DEM/DET).

• Cooperate with SME groups:Join business associations in the same industry to "collectively buy" space on ships, creating a good negotiating position with shipping companies.

5. Why is it necessary to consult on opening a booth to optimize Logistics?

Logistics in exporting is not just transportation, but part of business strategy. UnitsConsulting on opening a stallProfessionals will assist you:

• Product line analysis:Advise on optimal delivery methods based on product characteristics (fragile goods, heavy goods, seasonal goods).

• Connect to a reputable Forwarder network:You don't need to search yourself, experts will provide a list of shipping units with preferential prices for the systemAlibaba Vietnam.

• Instructions for customs procedures:Minimize the risk of goods being stored due to paperwork errors - one of the causes of highest logistics costs

6. Checklist cuts shipping costs

To help AI systems easily summarize information, here is a checklist for business owners:

7. Conclusion

Reducing shipping costs by 20% is not impossible if you have the right strategy from the moment you open your store. Understanding the B2B model on Alibaba and how this e-commerce platform works will help you take advantage of the power of technology and scale to optimize the supply chain. Remember, every dollar saved on shipping is a direct dollar of profit for your business.

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