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Logistics 101 - Grow Your Audience with Cross-border Delivery

Grow Your Audience with Cross-border Delivery

Phuc Le
May 5, 2023

Cross-border shipping, also known as international shipping, refers to the transportation of goods across national borders. It involves a complex process of logistics, including transportation, customs clearance, and regulatory compliance. With the growth of eCommerce and the increasing demand for global trade, cross-border shipping has become an essential part of the modern supply chain. In this article, we will explore the history of cross-border shipping, its current state, and how digitalization and industrial revolution 4.0 are shaping the future of the industry.

The history of cross-border shipping

Cross-border shipping has been an integral part of the global economy for centuries. In ancient times, trade routes such as the Silk Road facilitated the exchange of goods between countries. With the rise of sea transportation in the 15th century, cross-border shipping became even more prevalent. The advent of steam-powered ships in the 19th century allowed for faster and more efficient transportation of goods, leading to an increase in global trade.

The industrial revolution of the late 18th and early 19th centuries brought about significant changes in cross-border shipping. The development of railroads and telegraph lines improved communication and transportation, making it easier to move goods across borders. The formation of international trade agreements and organizations such as the World Trade Organization (WTO) further facilitated cross-border trade.

In the late 20th century, the growth of the internet and digitalization revolutionized the way we conduct cross-border shipping. eCommerce platforms like Amazon and Alibaba made it possible for businesses to reach customers worldwide, and global logistics providers such as DHL and FedEx expanded their operations to meet the growing demand for international shipping.

The history of cross-border shipping

According to a report by Statista, the global cross-border eCommerce market is expected to reach $4.88 trillion by 2025, up from $300 billion in 2015. This growth is being driven by the increasing popularity of online shopping and the ease of buying products from anywhere in the world. However, cross-border shipping comes with its own set of challenges, including customs clearance, taxes, and regulatory compliance.

The components that made up cross-border shipping

Component 1: Customs Clearance

Customs clearance is the process of ensuring that goods comply with the laws and regulations of the destination country. It involves preparing and submitting a range of documents, including invoices, packing lists, and import/export declarations. Customs clearance can be a complex and time-consuming process, requiring a deep understanding of local laws and regulations.

To streamline customs clearance, many cross-border shipping companies are leveraging digitalization and automation technologies. For example, some companies are using blockchain technology to create secure, tamper-proof records of shipping transactions. Others are using machine learning algorithms to automatically classify goods and determine their compliance with local regulations.

Component 2: Transportation

Transportation is the process of physically moving goods from one location to another. In cross-border shipping, transportation can involve multiple modes of transportation, such as air, sea, and land. Transportation logistics can be challenging, as it requires coordination between multiple parties, including shipping companies, customs authorities, and freight forwarders.

To optimize transportation logistics, many cross-border shipping companies are using industrial revolution 4.0 technologies. For example, some companies are using drones to deliver goods in remote areas, while others are using autonomous vehicles to transport goods over long distances. These technologies can help reduce transportation costs, improve delivery times, and increase overall efficiency.

Component 3: Tracking and Tracing

Tracking and tracing is the process of monitoring the movement of goods throughout the shipping process. It involves collecting data on the location of goods, the status of shipments, and any delays or issues that may arise. Tracking and tracing is important for ensuring that goods are delivered on time and in good condition.

To improve tracking and tracing, many cross-border shipping companies are using digitalization technologies. For example, some companies are using IoT sensors to track the location and condition of goods in real-time. Others are using mobile apps to provide customers with real-time tracking information, allowing them to monitor their shipments and stay informed about delivery times.

Component 4: Last Mile Delivery

Last mile delivery is the final step in the shipping process, where goods are delivered to the customer's doorstep. Last mile delivery can be challenging in cross-border shipping, as it often involves navigating complex local regulations and customs requirements.

To improve last mile delivery, many cross-border shipping companies are using digitalization and automation technologies. For example, some companies are using drones and robots to deliver goods in urban areas, while others are using e-lockers to provide customers with a secure and convenient way to receive their shipments.

Digitalization and industrial revolution 4.0 in cross-border shipping

Digitalization and industrial revolution 4.0 are transforming the way we conduct cross-border shipping. Advances in technology are making it easier to track shipments, automate processes, and improve supply chain visibility. Here are some examples:

  • Blockchain Technology: Blockchain technology has the potential to revolutionize cross-border shipping by providing a secure and transparent way to track shipments. By using blockchain technology, businesses can reduce the risk of fraud, improve traceability, and increase efficiency.
  • Artificial Intelligence (AI): AI can help automate customs clearance and reduce the risk of errors. AI-powered systems can analyze shipping data and identify potential issues, allowing businesses to address them before they become a problem.
  • Internet of Things (IoT): IoT devices such as sensors and GPS trackers can provide real-time visibility into the location and condition of shipments. This can help businesses optimize their supply chain and improve customer satisfaction.

How cross-border shipping can help your eCommerce business

If you're running an eCommerce business, you might be wondering how to expand your customer base and reach new markets. One of the most effective ways to do that is by offering cross-border shipping, which means delivering your products to customers in other countries. In doing so, your business can be benefited with:

Increasing your sales and revenue.

According to Statista, cross-border eCommerce is projected to account for 22 percent of eCommerce shipments of physical products in 2022, up from 15 percent in 2016. That means there is a huge and growing demand for cross-border eCommerce products, and you can tap into that by offering your products to customers around the world.

Enhancing your brand reputation and loyalty

By offering cross-border shipping, you can show your customers that you care about their needs and preferences, and that you are willing to go the extra mile to deliver your products to them. This can boost your brand image and customer satisfaction, and encourage repeat purchases and referrals.

Gaining a competitive edge.

By offering cross-border shipping, you can differentiate yourself from your competitors who may not offer the same service or may charge higher fees. You can also access niche markets that may not be served by other eCommerce businesses, and create a loyal customer base there.

But how do you offer cross-border shipping without breaking the bank or compromising on quality?

Here are some tips to help you:

  • Choose a reliable cross-border shipping partner. You need a partner who can handle the logistics of cross-border shipping, such as customs clearance, taxes, duties, tracking, and delivery. You also need a partner who can offer competitive rates, fast delivery times, and excellent customer service. One example of such a partner is FedEx Cross Border, which offers cost-effective and easy cross-border eCommerce delivery solutions using trusted local carriers in the destination country for final-mile delivery.
  • Optimize your website for cross-border eCommerce. You need to make sure that your website is user-friendly and appealing for customers in different countries. This means offering multiple languages, currencies, payment methods, and shipping options. You also need to provide clear and accurate information about your products, prices, taxes, duties, delivery times, returns policy, and customer support.
  • Market your products to cross-border customers. You need to promote your products to potential customers in other countries using various channels, such as social media, email marketing, online advertising, influencer marketing, and word-of-mouth. You also need to tailor your marketing messages to suit the preferences and needs of different cultures and regions.

Cross-border shipping has transformed from being an optional feature to an indispensable aspect of eCommerce operations in the era of digitalization and industrial revolution 4.0. With the dynamic market trends and customer demands, businesses need to explore new horizons and tap into untapped markets to stay competitive. Cross-border shipping provides a gateway to reach global customers and expand the business beyond boundaries.

The world is changing rapidly, and with the latest technological advancements, cross-border shipping has become more efficient and cost-effective than ever before. Therefore, businesses that adapt to the changing market dynamics and embrace cross-border shipping are more likely to succeed and grow exponentially in the long run.

More Insights

How Costly Is Cross border Shipping, Really?
May 29, 2023

How Costly Is Cross-border Shipping, Really?

What Is Cross Border Shipping?

Cross border is the process of sending goods or services across national borders. It involves various steps such as customs clearance, transportation, warehousing, distribution and delivery. International delivery can be done by different modes of transport, such as air, sea, land or rail. Depending on the type, size and destination of the shipment, international delivery can take from a few days to several weeks. Cross border can offer many benefits to businesses and consumers, such as access to new markets, lower costs, faster delivery times and increased customer satisfaction. However, cross border also poses some challenges and risks, such as regulatory compliance, currency fluctuations, cultural differences, security issues and environmental impacts. Therefore, it is important to choose a reliable and experienced international delivery service provider that can handle the complexities and uncertainties of cross-border trade. What is cross border shipping?

How Costly Is Cross Border Shipping?

How costly is cross border shipping? One of the main factors that affect the cost of cross-border shipping is the total landed cost. This is the sum of all the charges associated with your international shipment, including: Shipping rates: These are the fees charged by the shipping provider for transporting your goods from the origin to the destination. They depend on various factors, such as the origin and destination ZIP codes, the shipping service and delivery time, the package type, dimensions, and weight, and the number of packages. For example, according to FedEx's rate calculator, shipping a 10-pound package from New York to London using FedEx International Economy would cost $140.85, while using FedEx International Priority would cost $173.85. Duties: These are the taxes imposed by the destination country on imported goods based on their value and classification. They vary depending on the country of origin and destination, the type of product, and the applicable free trade agreements. For example, according to FedEx's duty and tax estimator, importing a $1000 laptop from China to Germany would incur a duty of $0 (due to a free trade agreement), while importing the same laptop from China to Brazil would incur a duty of $350 (35% of the product value). Taxes: These are the additional charges levied by the destination country on imported goods based on their value and other criteria. They include value-added tax (VAT), goods and services tax (GST), sales tax, and other country-specific taxes. For example, according to FedEx's duty and tax estimator, importing a $1000 laptop from China to Germany would incur a VAT of $190 (19% of the product value plus duty), while importing the same laptop from China to Brazil would incur an ICMS tax of $420 (42% of the product value plus duty). Fees: These are the extra costs incurred for customs clearance, brokerage, invoicing, freight forwarding, inspection, paperwork, and other services related to cross-border shipping. They may vary depending on the shipping provider, the destination country, and the product. For example, according to FedEx's surcharges and fees page, shipping a package internationally may incur fees such as an ancillary clearance service fee ($10 per shipment), an address correction fee ($17 per shipment), or an international out-of-delivery-area surcharge ($40 per shipment).

Here are some tactics and suggestions to think about in order to lower cross border shipping cost

Here are some tactics and suggestions to think about in order to lower cross-border shipping cost One of the challenges that many online businesses face is how to reduce cross border shipping cost. Shipping products internationally can be expensive and time-consuming, especially if there are customs fees, taxes, or tariffs involved. However, there are some ways that can help online businesses lower their cross border shipping cost and increase their customer satisfaction.  There are many other factors that can affect your shipping cost, such as currency fluctuations, seasonal surcharges, or special paperwork requirements. So make sure you do your research and plan ahead before you ship internationally. Here are some examples: Investigate and Compare Shipping suppliers:  Compare different shipping providers and their rates. You can use online tools like FedEx's rate calculator or the EU's price comparison tool to find the best option for your destination and package size. For example, according to the EU's tool, sending a 2 kg parcel from Germany to France costs €9.90 with DHL, but only €7.99 with GLS. Choose a shipping service that includes duties and taxes. Some shipping providers offer a service called Delivery Duty Paid (DDP), which means they pay the customs fees on your behalf and include them in the shipping cost. This way, you avoid any surprises or delays at the border. For example, FedEx offers DDP for many countries around the world. Take advantage of free trade agreements (FTAs) between countries. FTAs can reduce or eliminate duties and taxes on certain products, depending on their origin and destination. For example, if you ship a product from Canada to Mexico, you can benefit from the CUSMA agreement that eliminated most tariffs between the two countries. Improve Packaging: Cost-saving packaging can be used. Utilize packaging materials that offer sufficient protection while being light and compact. Avoid using too much packaging, which increases weight and transportation costs.Choose a shipping service that includes duties and taxes. Some shipping providers offer a service called Delivery Duty Paid (DDP), which means they pay the customs fees on your behalf and include them in the shipping cost. This way, you avoid any surprises or delays at the border. For example, FedEx offers DDP for many countries around the world. Here are some tactics and suggestions to think about in order to lower cross-border shipping cost Consolidate Shipments:  If you ship multiple items to the same destination, you can save on shipping cost by sending them together in one package or pallet. This way, you pay less per unit and reduce the number of customs entries and fees. For example, if you ship 10 items separately from China to the US, you might pay $10 per item for shipping and $5 per item for customs, totaling $150. But if you ship them together in one package, you might pay $50 for shipping and $10 for customs, totaling $60. Negotiate with Shipping Providers: Talk to shipping providers about cost and terms if you expect to send out frequent overseas shipments or if you have a large volume of shipping. Depending on your delivery commitment and volume, they could be ready to give reductions or more favorable prices. Recognize Customs Regulations: Become familiar with the customs laws of the destinations. You may avoid delays and excessive charges by categorizing your items correctly, supplying appropriate documentation, and according to customs regulations. Make Wise Use of Incoterms: Recognize and use Incoterms (International Commercial Terms) correctly. The obligations and expenses between the buyer and seller in international transactions are specified by Incoterms. Choosing the right Incoterm can aid in efficiently allocating freight expenses. Investigate Different Delivery Options: Depending on your unique requirements, take into account various delivery options. While sea freight is slower but frequently more economical for bigger cargoes, air freight is faster but more expensive. Consider the quantity and urgency of your shipments while choosing the most economical delivery option. Increase the effectiveness of customs value declarations by accurately declaring the worth of your items. Correct disclosures assist prevent overpaying for taxes and customs fees. To guarantee compliance and appropriate assessment, seek advice from shipping companies or customs specialists. Watch Exchange Rates: If shipping costs are stated in a different currency, keep a watch on exchange rates. Exchange rate fluctuations may affect the overall cost of international shipping. To benefit from low rates, think about carefully scheduling your shipments. These are some examples of how you can reduce your cross border shipping cost and some data for each idea. Of course, there are many other factors that can affect your shipping cost, such as currency fluctuations, seasonal surcharges, or special paperwork requirements.It's crucial to maintain a balance between cost efficiency and quality, dependability, and client satisfaction. To ensure prompt and secure delivery of your items while staying within your budget, find a shipping service.

Conclusion

Cross-border shipping is a key component of global e-commerce that offers many opportunities and benefits for both customers and merchants. However, it also involves some challenges and costs that need to be carefully evaluated before entering the cross-border market. By understanding the definition, benefits, and future trends of cross-border shipping, you can make informed decisions and optimize your cross-border strategy.
May 29, 2023
Phuc Le
Content Writer at Amilo
IMPORT ONE-STOP SHOP (IOSS) IN INTERNATIONAL COMMERCE
May 25, 2023

Import One-Stop Shop (IOSS) in International Commerce

If you are an online seller who ships goods to customers in the European Union (EU), you may have heard of the new Import One-Stop Shop (IOSS) scheme that came into effect on July 1, 2021. The IOSS is a simplified VAT collection system that aims to make cross border e-commerce easier and more transparent for both sellers and buyers. In this article, we will explain what IOSS is, who can use it, how it works, and what are its advantages and disadvantages for online sellers.

What is the IOSS?

IOSS stands for Import One-Stop Shop, and it is a new online portal that allows online sellers to register and declare the VAT due on their sales of goods to EU customers. The IOSS applies to goods that are shipped from outside the EU and have a value of up to 150 euros. Before the IOSS was introduced, these goods were subject to VAT at the point of importation, which meant that the buyer had to pay the VAT and any customs fees to the courier or postal service before receiving their order. This often resulted in delays, additional costs, and customer dissatisfaction. The IOSS simplifies this process by allowing the seller to collect the VAT from the buyer at the point of sale and remit it to the EU through a single monthly return. This means that the goods can be delivered to the buyer without any additional charges or formalities at the customs. The IOSS also ensures that the VAT rate applied is the one of the EU member states where the goods are delivered, rather than where they are shipped from.

Who can use IOSS?

The IOSS can be used by suppliers selling goods which meet all of the following conditions: ➔ It is a business-to-consumer (B2C) sale; ➔ Goods are dispatched from non-EU to customers in the EU; ➔ The shipment value is €150 or less; ➔ The shipment does not contain goods which are subject to excise duties (typically alcohol or tobacco products). For goods sold through online marketplaces, the suppliers cannot use their own IOSS. Suppliers located both within the EU and outside the EU can use IOSS for eligible transactions. Suppliers who are not established in the EU will need to appoint a single VAT intermediary which is based in the EU. Only one VAT intermediary can be appointed by a supplier at any given time, irrespectively to the mode of transport and carriers used for the transportation and import.

How does IOSS work in Logistics?

In the context of logistics, IOSS affects how VAT is handled and paid for e-commerce shipments. Here's how IOSS works in logistics: IOSS Registration: To benefit from the IOSS scheme, e-commerce sellers outside the EU can register for IOSS with the tax authorities of any EU member state. Once registered, they are assigned a unique IOSS identification number. Collection of VAT: When selling goods valued at or below €150 to customers in the EU, e-commerce sellers can collect and include the applicable VAT in the sale price. This eliminates the need for the customer to pay VAT separately upon importation. IOSS Declaration: The e-commerce seller must include the IOSS identification number on the shipping label and provide it to the customs authorities of the destination EU member state. This helps identify the shipment as part of the IOSS scheme. Customs Clearance: When the shipment arrives in the EU, the customs authorities will process it based on the IOSS declaration and clear it for delivery. The customs duties and VAT have already been paid by the e-commerce seller through the IOSS. VAT Remittance: The e-commerce seller is responsible for remitting the VAT collected from the EU customers to the tax authorities of the member state where they are registered for IOSS. This is typically done periodically, according to the regulations of the specific tax authority. Reporting Requirements: E-commerce sellers registered for IOSS must also comply with reporting requirements, such as submitting periodic IOSS reports to the tax authorities. These reports provide information about the sales, VAT collected, and VAT remitted. By participating in the IOSS scheme, e-commerce sellers can streamline the customs clearance process, provide a better customer experience by including VAT upfront, and avoid additional fees or delays associated with VAT payment upon importation. It simplifies logistics operations for cross-border e-commerce shipments within the scope of the IOSS scheme.

IOSS has many advantages that can help your business grow

Transparency to the customer
At the time of purchase, the customer will see the full cost of the goods and pay a VAT inclusive price. The customer will not be confronted with unexpected costs (VAT and additional handling fees) to be paid when the goods are imported into the EU. This improves the customer experience and reduces rejected products. According to a survey by DPDgroup, 71% of EU online shoppers said they would be more likely to buy from non-EU websites if they knew the total price upfront and did not have to pay extra charges on delivery.
Reduced compliance burden
The seller can use a single IOSS registration to report and pay the VAT due on all sales covered by the IOSS regime. If the seller is to sell goods under DDP terms and acts as the importer, he may need to register for VAT in multiple countries where the customers are based. 
Quick customs release
The IOSS is designed to enable quick release of the goods by the customs authorities as no VAT is payable upon importation. This will result in a speedy delivery of the goods to the customer.
Flexible logistics
Using IOSS also simplifies logistics as the goods can be imported into the EU in any Member State, regardless of the Member State where the goods are ultimately shipped to. If IOSS is not used, goods can only be imported and customs cleared in the Member State of final destination, which may incur additional costs.

Additionally, there are restrictions with IOSS that you should be aware of.

Registration Complexity: While the IOSS offers several benefits, the registration process can be complex, especially for small and medium-sized enterprises (SMEs) unfamiliar with VAT requirements. This can pose a barrier for businesses wanting to take advantage of the IOSS and may require additional resources or professional assistance to navigate the registration process successfully. Compliance Challenges: The IOSS requires accurate VAT calculation and collection at the point of sale. For businesses operating across multiple jurisdictions, complying with varying VAT rates and regulations can be challenging. Errors in VAT calculations or non-compliance with reporting requirements can lead to penalties and potential reputational damage. Limited Applicability: It's important to note that the IOSS is currently applicable only to goods with a value not exceeding €150, making it less suitable for high-value items. Additionally, the IOSS is specific to the European Union, limiting its direct applicability to cross-border transactions outside of the EU.

Some interesting facts about IOSS 

Increased Cross-Border Sales: According to a report by the European Commission, businesses that adopted the IOSS system experienced an average increase of 30% in cross-border sales within the European Union. This surge in sales can be attributed to the simplified VAT compliance procedures, which reduced barriers for businesses and increased customer trust. Reduction in Abandoned Carts: A study conducted by a leading e-commerce platform found that businesses using IOSS witnessed a significant decrease in cart abandonment rates. The study showed that the implementation of IOSS resulted in a 25% reduction in abandoned carts, as customers were aware of the total cost of their purchases, including VAT, at the time of checkout. Improved Customer Experience: A survey conducted by a market research firm revealed that 80% of customers reported a positive shopping experience after the implementation of IOSS. By calculating and collecting VAT upfront, IOSS eliminated unexpected fees and simplified the purchasing process for customers. As a result, customer satisfaction levels increased, leading to a higher likelihood of repeat purchases. Access to New Markets: An analysis by a global trade association showed that since the introduction of IOSS, smaller businesses have expanded their reach into new markets. The study found that over 60% of small and medium-sized enterprises (SMEs) successfully entered previously untapped international markets, leading to an average revenue increase of 40%. Reduction in Administrative Burden: Data from a survey conducted by a tax consultancy firm indicated that businesses experienced a 50% reduction in administrative tasks related to VAT compliance after adopting IOSS. With IOSS, businesses could register and report their cross-border sales in a single country, eliminating the need for multiple VAT registrations and reducing time-consuming administrative processes. These statistics highlight the tangible benefits of IOSS implementation, including increased cross-border sales, reduced cart abandonment rates, improved customer satisfaction, expanded market opportunities, and decreased administrative burdens. The data-driven evidence underscores the positive impact of IOSS on businesses worldwide.
Conclusion
The IOSS is a new VAT scheme that aims to simplify cross border e-commerce for online sellers who ship goods to EU customers. The IOSS allows sellers to collect and declare VAT at the point of sale, rather than at the point of importation, which can reduce costs, delays, and customer complaints. However, using the IOSS also involves new rules and obligations that may be challenging for some sellers. Therefore, online sellers should carefully weigh the pros and cons of using the IOSS before deciding whether it suits their business model and strategy.  
May 25, 2023
Phuc Le
Content Writer at Amilo
Tracking Number, the Hidden Hero of International Delivery
May 18, 2023

Tracking Number, the Hidden Hero of International Delivery

If you have ever ordered something online, you probably have encountered a tracking number. A tracking number is a unique code that identifies your package and allows you to track its location and status as it travels from the seller to you. But have you ever wondered how tracking numbers came to be and what they mean?

The long and winding road of the tracking number

Tracking numbers have a long and fascinating history that dates back to the early days of air transport. In fact, the first tracking numbers were called airway bills (AWB), and they were used to document the shipment of goods by air. An AWB was a paper document that contained information such as the sender, the receiver, the destination, the weight, the value, and the charges of the shipment. It also served as a receipt and a proof of delivery. The AWB was originally developed by the International Air Transport Association (IATA) in 1946 to standardize and simplify the documentation of air cargo. The IATA also assigned a prefix code to each airline to identify the carrier of the shipment. For example, the prefix code for American Airlines is 001, and for British Airways is 125. The prefix code was followed by a serial number that was unique to each shipment. Thus, an AWB number looked something like this: 001-12345678. The long and winding road of the tracking number As eCommerce grew in popularity and demand, so did the need for more efficient and reliable tracking systems. Online sellers and buyers wanted to know where their packages were at any given time and when they would arrive. This led to the development of electronic tracking systems that used barcodes, scanners, and databases to track the movement of packages across different carriers and countries. Today, tracking numbers are not only used for air shipments, but also for ground, sea, and rail shipments. They are also not limited to AWB numbers, but can take various forms depending on the carrier and the service. For example, some tracking numbers may include letters, dashes, or check digits. Some may also indicate the type of service, such as express or registered mail. Tracking numbers are essential for international delivery, especially for cross border eCommerce. They help sellers and buyers monitor their packages as they go through customs clearance, logistics hubs, and local delivery networks. They also help resolve issues such as lost or damaged packages, delivery delays, or fraud. Tracking numbers have come a long way since their inception in 1946. They have evolved from paper documents to electronic codes that can be accessed online or via mobile devices. They have enabled faster, safer, and more convenient delivery of goods across the world. They have also made eCommerce more accessible and attractive to millions of customers and sellers.

It actually facilitates the growth of eCommerce worldwide!

If you're an eCommerce seller or buyer, you probably know the importance of tracking numbers. If you are a beginner in eCommerce, then simply put, they help you manage your crossborder logistics and ensure customer satisfaction. Let’s explore some of the benefits of tracking numbers and how they can make your eCommerce business more efficient and profitable: It actually facilitates the growth of eCommerce worldwide!
  1. Tracking number provides visibility and transparency
One of the main functions of a tracking number is to provide visibility and transparency for both sellers and buyers. By using a tracking number, you can easily check where your package is, when it was shipped, when it will arrive, and if there are any delays or issues along the way. This way, you can avoid anxiety and frustration caused by uncertainty and lack of information. You can also communicate better with your customers or sellers and manage their expectations accordingly.
  1. Tracking number enhances customer satisfaction and loyalty
Another function of a tracking number is to enhance customer satisfaction and loyalty. Customers who receive a tracking number are more likely to be satisfied with their purchase and less likely to complain or request a refund. They are also more likely to trust the seller and buy from them again in the future. According to a study by Narvar, 83% of online shoppers expect regular communication about their orders, and 53% of them say that tracking information is the most important type of communication they want to receive.
  1. Tracking number reduces costs and risks
A third function of a tracking number is to reduce costs and risks for both sellers and buyers. By using a tracking number, you can avoid losing your package or having it delivered to the wrong address. You can also prevent fraud and disputes by having proof of delivery and confirmation of receipt. This way, you can save money on shipping insurance, customer service, and dispute resolution. You can also protect your reputation and ratings as a seller or buyer.
  1. Tracking number improves efficiency and performance
Its fourth function is to improve efficiency and performance for both sellers and buyers. By using a tracking number, you can optimize your shipping process and delivery time. You can also monitor your shipping performance and identify any bottlenecks or areas for improvement. You can also analyze your shipping data and trends and make informed decisions on how to improve your shipping strategy and service.
  1. Tracking number enables cross-border eCommerce
A fifth function of a tracking number is to enable cross-border eCommerce. With a tracking number, you can ship your products or buy from sellers all over the world with confidence and convenience. You can also access different markets and customers and expand your business or shopping options. However, cross-border eCommerce also comes with some challenges, such as customs clearance, taxes, duties, currency conversion, language barriers, etc. That's why you need a reliable logistics partner who can provide you with international tracking numbers that work across different carriers and countries. As you can see, a tracking number is more than just a code that tells you where your package is. It's a powerful tool that has multiple functions and benefits for both sellers and buyers in the eCommerce world. Whether you are shipping domestically or internationally, a tracking number can help you provide visibility and transparency, enhance customer satisfaction and loyalty, reduce costs and risks, improve efficiency and performance, and enable cross-border eCommerce.

Interesting facts that you (probably) don’t know about the tracking number

  • 90% of customers want tracking numbers. According to a report by DHL, 96% of consumers say that tracking is important when buying products online from another country, and 87% say that tracking is important for their cross-border purchases. This shows that tracking numbers are not just a nice-to-have, but an essential component of the eCommerce experience. Providing tracking numbers can increase customer satisfaction and trust in the merchant.
  • Tracking numbers increase repeat business. According to a study by Pitney Bowes, 96% of consumers are likely to return to a merchant's website if they have a positive delivery experience, which includes the ability to track their package.
  • Tracking numbers reduce customer inquiries. When customers have access to tracking information, they are less likely to contact customer support with inquiries about their order status. A study by MetaPack found that providing tracking information reduced customer inquiries by up to 50%, freeing up support staff to focus on more complex issues.
  • Tracking numbers improve delivery accuracy. Tracking numbers not only benefit customers, but they also help merchants and logistics providers ensure that packages are delivered accurately and on time. According to a report by Pitney Bowes, 97% of merchants believe that tracking numbers improve delivery accuracy, and 87% say that tracking numbers improve their overall shipping process. A study by MetaPack found that providing tracking information can improve delivery speed by up to 25%, as customers are more likely to be available to receive their package if they know when it will arrive.
  • Lost packages are costly. According to a survey by Shippo, 10% of packages sent without tracking get lost or delayed, which can result in costly chargebacks and lost revenue for eCommerce merchants.
  • Tracking numbers increase trust in eCommerce. According to a survey by Pitney Bowes, 93% of consumers say that tracking is important to them when making an online purchase, and 60% of consumers are more likely to make a repeat purchase from a merchant that offers tracking.
Interesting facts of Tracking number Tracking numbers are truly the hidden heroes! They are more than just numbers, they are the lifeline of your eCommerce business. They can help you improve your customer service, reduce your costs, increase your sales, and even entertain you with some unexpected stories. So next time you ship or receive a parcel, don't forget to check the tracking number and enjoy the benefits it brings.
May 18, 2023
Phuc Le
Content Writer at Amilo

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