Cross-border e-commerce track, digitalization has become a key point of competition

We now use a word - laps - to describe the whole cross-border circuit. Cross-border racetracks are growing rapidly, but overall digital capabilities are not enough. Cross-border will involve domestic suppliers, overseas consumers, in every single point of nodes, digital capabilities are enough, but from the whole link, it is still in a nascent stage.

For Flybox Technology, in the face of overseas consumers, we want to be a global order fulfillment expert. After our efforts for a period of time, I would like to take this opportunity to share with you what new things are currently on the digital road.

01 Development status of cross-border e-commerce industry

You may notice that the government has introduced many policies to encourage cross-border e-commerce this year.

In the past, when we did cross-border, for example, to participate in cross-border e-commerce fairs, we usually had two indicators to describe. One is the appearance level indicator, the exhibitors or visitors in the previous cross-border e-commerce expo, the appearance level is very ordinary, but now you go to see the cross-border expo, come to the handsome and beautiful men. What does that mean? That young people are paying attention to cross-border e-commerce.

The second is that you will find a lot of Ali high-level people come out to do cross-border recently, what does this mean? It means that the whole cross-border will be in a very big period of change, and all the senior players will begin to enter the cross-border inside. At this time, it is no longer the original product distribution, the competition of new products, but with the domestic e-commerce began to do fine operation, began to test your service ability. At this time, digitalization will become a core point of competitiveness.

We can also give a numerical representation of how the development of the entire cross-border circuit has been. Some time ago, I attended an exhibition in Shenzhen, and many brands were asking: Is it still too late for us to enter cross-border e-commerce?

For the logistics circuit, why do we choose logistics?

We look at the cost structure of the entire cross-border user, the proportion of the entire logistics cost is 20%-30%, which is very close to the marketing cost. From a digital point of view, the two tracks in the cross-border field of marketing and logistics are very thriving sectors of digitalization.

For example, SHEIN this clothing brand is unknown in China, but it is booming abroad, with an estimated value of about 30 million yuan. ZARA boasts a fast supply chain, while SHEIN can digitize marketing and the entire supply chain.

They put up a picture on Facebook, and then use the user's click data to quickly decide whether to order the garment or not. Then let the factory do a hundred orders to try the order, three days later can reach the hands of consumers, and then through the transformation to understand the reaction speed.

The acceptability of an explosive product in the market is only 14 days, which puts forward very high requirements for front-end operation and back-end logistics.

At this time, the demand for digital logistics is very urgent.

02 What is Digital Logistics

What is digital Logistics? Most of them will first think of Cainiao, the robots that constantly operate in JD's warehouses. But from our perspective, we have several layers:

First of all, from the perspective of orders, there are warehousing services, logistics services, and the digitalization of this end is not the same as what you imagine in your mind. Logistics has intelligent capacity pool, which has no concept in the country, but the cross-border is not the same, different countries, goods, shipping ports, landing ports, customs clearance policies, these things are far higher than all domestic costs. In the domestic 500 grams of a small bag, Yiwu area can do one or two dollars, but in the international logistics end is basically 40-50 dollars, which is ten times as much as domestic logistics.

For us, the digitization of logistics can help cross-border e-commerce sellers increase conversion rates and improve marketing results.

So what about the digitalization of marketing services?

Jingdong logistics everyone is familiar with, when you place an order, when you receive goods can be at a glance. But that kind of thing is hard to do internationally, across borders. Why? Because of what I just said, its order link is too long and involves multiple countries.

So why can JD do it? Because all of Jingdong's logistics are self-controlled, after all of its nodes are involved in each link, all of the digitalization is connected, and you can implement the display of when your order is placed and when you can receive it. After JD.com listed this conversion rate, its conversion rate increased by 87%. SHEIN has done the same.

For cross-border e-commerce sellers, Feibox is the first company to put forward when you place an order and when you receive a reminder of the full link logistics timeliness.

Another piece is the intelligent capacity pool, different customs, goods, weight, the entire capacity pool is not the same. As a whole, this link is very complex, and at this time, a very high requirement is put forward for the service provider, that is, your information ability. For us, we use our own ERP, WMS, TMS, through the flying box tracking plug-in to make more deterministic logistics experience become a cross-border electrical trademark.

In addition to the capacity pool, we have cloud storage. The warehouse is the first place to launch the entire goods from the consumer order, so we will lay out a large number of delivery places in the country. Another point, as intelligent and digital, is that it can reshape the process. We will take each section of the process out again to see if each node can be optimized.

There is a very vivid analogy, like the 4x100m race, each run is a stage, and between the baton is also a test. We hope that the baton is also very common, so we draw every node, and the data transformation on every node is very efficient, and we have now improved the logistics time by about three times.

In fact, when it comes to timeliness, this scene is very easy to understand in China, that is, a business he does Taobao, Tmall, Pinduoduo, and Poly cost-effective, so he needs a set of ERP system to manage. But a while ago, Amazon blocked our e-commerce, so many of our e-commerce began to do multi-platform, that time multi-platform, multi-order management problems came out.

One of the most important is logistics orders. Why is logistics management so complicated? In the field of cross-border e-commerce, Amazon has its own logistics, independent stations also have their own logistics, including Facebook will also put forward time-limited requirements in logistics.

At this time, for the person in charge of the cross-border e-commerce logistics department, there are only two big things for them:

One is to compare prices. Which is the best price of logistics today? Why? We may not experience it in the country, but the cross-border price is adjusted once every three days. For the head of the logistics department, it is hoped that there is an intelligent capacity pool to help him do price comparison. Fly Box provides this piece, we have a management system to do orders.

In addition, due to different platforms, different countries will also lead to different order timeliness. At this time, it is also a huge challenge for the head of the logistics department to manage the orders that have been shipped, including which orders are abnormal, which orders have arrived, which orders are the most efficient and so on.

Therefore, for digital management, Flybox provides a multi-order management platform to help these sellers' management departments improve their management efficiency.

Finally, I would like to say that cross-border opportunities are now many, and digitalization can help cross-border achieve greater breakthroughs. Digitization does not represent total innovation, but the complete integration of technology and information flow in each phase to achieve maximum efficiency.