10 Ways To Reduce Shipping Costs From China [Life Hacks For Business]

Feb 13, 2020 Lilia Khovrak Lilia Khovrak

China has become a center of global industrial exports due to reforms. 

Also, thanks to cheap production and labor, ability to introduce new technologies into production and the vast territory of China — production of goods is in competition with many highly developed countries. Now the whole world is purchasing goods or moving production to China to optimize business. Many are used to buying goods from China due to the fact that you can buy the right thing and inexpensively.


If you also buy goods in China, then SeaRates has prepared for you a few simple tips that can reduce logistics costs without harming the safety of the cargo.




So:


1) Talk about the crisis!

When communicating with the supplier, remind him of the difficult economic situation! Most likely he already guesses about it, however, do not hesitate to ask for a discount! Do not be afraid to speak with the seller, these are market relations and sellers always make concessions. This will allow you to reduce the cost by at least 10%.


2) Replace materials

If you work with the factory directly, ask to replace some components with alternative ones. Thus, you reduce the cost of goods and maintain quality. Eco-packaging is gaining more and more popularity and it is much cheaper and does not harm the environment. Not all manufacturers offer such solutions. Save up to 20%.


3) Get rid of bulky packaging

Some types of goods can be transported without packaging. Ask the supplier to put the whole load in one box and lay with soft material. As a rule, the package creates an additional volume (what affects the cost) and does not protect the cargo during transportation. Packaging can be sent separately or ordered locally in any country.


4) Ask for installments

If you have been working with a supplier for more than a year, and you have developed a trusting relationship, ask for installment payment. This service is actively gaining popularity and allows you to increase the turnover of funds, and also reduces the risk of getting low-quality goods. Forwarders at SeaRates often offer such solutions to their regular customers, which allows them to optimize their business.


5) Increase volumes

Try to increase the weight of the shipment. This will allow you to get an attractive rate, as well as send the goods more economical mode of transport. You can order a large batch of goods and leave in a customs warehouse, where from there already sell the goods. This allows you not to immediately invest the entire amount in the goods, but it is advisable to distribute your money.


6) Delegate cargo pickup

Ask the supplier to deliver the goods to the warehouse of the transport company in China. Supplier is responsible for the safety of your cargo and will not be able to offer an unverified company. Most likely, all costs will be borne by the sender, and you can save about $300.


7) Work directly

If you work with a wide range of products, find a supplier in China and work with him directly. You can find a supplier and competitive rates at SeaRates. So, you get rid of the services of intermediaries and save up to 20% of the cost.


8) Plan delivery at least 90 days in advance

Remember that the production of most goods takes from 20 to 35 days + delivery! In order to receive the goods on time, plan the delivery for at least six months. For example, order summer goods in December and vice versa.


9) Use container shipping.

Typically, the cost of transportation and delivery of goods from China is 100% of the value of the goods. This delivery method is reliable, economical and convenient. You can choose your route on the SeaRates platform and see in real time the route of your goods. In China, there are two large ports: Shanghai and Shenzhen, through which goods can be delivered anywhere in the world. This method of time is long, but reliable and cheap in comparison with other modes of transport.


10) And most importantly, always insure the cargo!

Cargo insurance provides you with all the risk on the road, and you will be sure that the goods will arrive exactly to you. If something happens along the way, insurance will cover everything and you will not incur losses for business. You can choose favorable Incoterms conditions and discuss all disputes with the seller.



Conclusion


If you use some of the above tips, you can reduce logistics costs without harming the safety of the cargo. If you want to know more about how delivery from China occurs or how to save on delivery, you can always use the free online consultation on our website.


Our experts know many more opportunities for saving on the delivery of goods from China and beyond. Becoming our client, you can be sure that we will offer you the optimal delivery option for cost, speed and security.


Good shopping and trouble-free delivery!


Lilia Khovrak is a professional content manager from Odessa, Ukraine. Loves life by the sea.  Dreams to see Paris and eat a croissant on the thresholds of Notre Dame de Paris. Hates to read meaningless (pablum) articles.


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