Faced with rising international air freight prices, cross-border e-commerce sellers need to address these issues comprehensively, including cost control, logistics optimization, and operational strategies, to reduce cost pressure and maintain competitiveness.
Below, Weefreight will provide a detailed analysis, which we hope will be helpful.
- Optimize Logistics Solutions and Reduce Dependence on Air Freight
Rationally Combine Transportation Methods:
For goods with less time-sensitive requirements (such as non-seasonal goods and inventory replenishment), a hybrid model of “air freight + sea freight/land freight” can be adopted. For example, some goods can be shipped in bulk to overseas warehouses by sea freight, and then supplemented with air freight for urgent orders, balancing time and cost.
Explore emerging logistics channels, such as the China-Europe Express (for the European market) and Cargo Express (land transport from China to Europe, with similar timeliness to air freight but lower costs). These are particularly suitable for large shipments weighing over 30kg.
Consolidate cargo and increase loading efficiency:
Collect cargo with other sellers and use LCL air freight to reduce unit weight transportation costs (pay attention to matching cargo categories to avoid customs clearance risks).
Optimize packaging size and use lightweight, compact packaging (e.g., reducing cushioning materials or using custom-sized cartons). Increase the loading capacity of containers or air freight pallets and reduce the additional costs caused by “dump weight” (volumetric weight).
Second, negotiate with logistics providers for better prices.
Long-term partnerships to lock in prices:
Sign long-term agreements with DHL, FedEx, and freight forwarders, committing to a certain volume of cargo. Strive for discounted prices or fixed-period pricing (e.g., quarterly/annual agreements) to mitigate short-term price fluctuations.
Compare prices across multiple channels and switch flexibly:
Instead of relying on a single logistics provider, connect with two or three freight forwarders or airlines simultaneously, compare quotes in real time (including remote fees), and switch to more cost-effective channels when prices rise (e.g., some regional logistics providers may offer competitive pricing on specific routes).
Pay attention to policy subsidies and promotions:
Some freight forwarders or airlines may launch promotions during the off-season or offer discounts on specific categories (such as consumer electronics and apparel). Additionally, monitor government logistics subsidies for cross-border e-commerce (such as subsidies for overseas warehouse construction and international transportation in some regions) to reduce actual costs.
Third, Adjust Operational Strategies to Shift Cost Pressure
Optimize Product Mix and Pricing:
Select high-profit, low-weight products (such as small, lightweight accessories and digital accessories) for key promotional purposes to reduce the proportion of logistics costs per unit product.
Appropriately increase product prices to shift some of the air freight costs to consumers (this should be considered in light of market competition to avoid excessively high prices that lead to a decline in sales).
Set order thresholds and increase the value of each shipment:
Initiate promotions such as “free shipping for orders over a certain amount” and “buy more and get more discounts” to encourage consumers to place orders in bulk or purchase multiple items, thereby increasing the weight/value of each shipment and spreading the logistics costs per unit.
- Develop overseas warehouses to reduce air freight
Pre-stock inventory at overseas warehouses:
For products with stable sales, bulk shipping can be done by sea to overseas warehouses in target markets (such as Amazon FBA or third-party overseas warehouses). Once a consumer places an order, the product will be shipped from the local warehouse, requiring only short-distance delivery costs, significantly reducing reliance on international air freight.
Advantages: Overseas warehouses offer fast shipping times (e.g., 3-5 days within the US), improve customer experience, and reduce the risk of negative reviews due to air freight delays.
Note: Optimize inventory forecasts to avoid increased storage fees due to unsold goods.
Utilize overseas warehouse return and exchange services:
Some overseas warehouses offer return and exchange services, reducing the costs of secondary international air freight associated with returns (e.g., repackaging returned goods and reselling them locally).
- Monitor Industry Trends and Prevent Risks
Track Air Freight Price Trends:
Use logistics information platforms (such as ShippingWatch and freight forwarding industry reports) to understand changes in air freight market supply and demand (such as fuel price fluctuations and warnings of peak season capacity shortages). Prepare inventory or adjust shipping plans in advance (for example, replenishing ocean freight shipments 1-2 months before the peak season).
Anticipate in Policy and Geopolitical Risks:
Pay attention to destination country customs policies, trade barriers (such as tariff adjustments and embargoed items), and changes in international routes (such as airspace closures due to epidemics or war). This can help prevent sudden policy changes that could lead to increased logistics costs or cargo delays.
If you have any international logistics service needs, please contact us by clicking the floating chat icon in the lower right corner or using other contact information in the lower right corner.
