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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.

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