What is the difference between cross-border logistics and cross-border cloud warehouses?

The popularity of international trade nowadays is almost no different from the shopping experience of domestic e-commerce. Taking cross-border e-commerce as an example, the number of sellers in China continues to increase. During this period, the emergence of international logistics and cross-border cloud warehouse services has made cross-border shopping as simple as doing Taobao Tmall.

Many new sellers may ask that cross-border logistics and cross-border cloud warehouses both help them mail goods from China to foreign customers. Can these two be understood as the same? If not, what is the difference between the two?

1. Definition and Function:

Cross border logistics: Cross border logistics covers the transportation and distribution process of products from international suppliers to buyers. It includes links such as transportation of goods, customs declaration, and destination distribution. The key goal of cross-border logistics is to ensure that products arrive at their destination in a safe, fast, and cost-effective manner.

Cross border cloud warehouse: Cross border cloud warehouse is a warehousing solution typically provided by third-party providers. It allows sellers to set up virtual warehouses in target markets and store products locally to meet customer needs faster. Cross border cloud warehouses also provide services such as inventory management, order processing, packaging, and distribution.

2. Costs and expenses:

Cross border logistics: Cross border logistics may involve high international transportation costs, tariffs, customs clearance fees, and fees related to various transportation options. These costs may vary depending on the country, mode of transportation, and value of the goods.

Cross border cloud warehouses: Cross border cloud warehouses are usually charged in the form of subscription or usage fees. Sellers pay fees for services such as storage, order processing, and distribution. Although cross-border cloud warehouses may increase operational costs in the short term, they can reduce the one-time costs and risks of cross-border logistics.

3. Speed and delivery time:

Cross border logistics: The speed of cross-border logistics usually depends on the chosen transportation method and destination. International transportation may take weeks or even months, which may result in longer delivery times.

Cross border cloud warehouse: Cross border cloud warehouse can accelerate delivery time because products are stored in the target market, which can meet customer orders faster. This helps to provide a faster delivery experience and improve customer satisfaction.

4. Inventory management and scalability:

Cross border logistics: Sellers need to carefully manage international inventory to avoid inventory backlog or shortages. Inventory management can be more complex as goods are typically distributed across multiple destinations.

Cross border cloud warehouse: Cross border cloud warehouses provide better inventory visibility and management tools, helping sellers more easily track inventory levels. It also has scalability, allowing sellers to quickly increase or decrease inventory based on demand.

5. Risk management:

Cross border logistics: Cross border logistics involves more uncertainty, such as risks of goods loss, tariff issues, transportation delays, etc. Sellers need more risk management strategies.

Cross border cloud warehouse: Cross border cloud warehouse can alleviate some risks because the product is in the target market, reducing risks in international transportation. In addition, it provides better inventory visibility and helps to avoid inventory issues.

Cross border e-commerce sellers can choose cross-border logistics or cross-border cloud warehouses based on their business needs and target markets, or combine the two to achieve the best results. Cross border logistics is more suitable for high-volume and high-value goods, while cross-border cloud warehouses are more suitable for scenarios that provide fast delivery and better inventory management.