This guide will demystify the U.S.-China trade landscape, explaining what tariffs are, how they impact your business, and, most importantly, how you can build a resilient supply chain to thrive in this new environment. 

What Exactly Is a Tariff?

At its core, a tariff is a tax imposed by a government on imported goods. Think of it as a toll you pay at the border. The purpose of tariffs can be to generate revenue, protect domestic industries from foreign competition, or as a negotiating tool in international trade disputes. 

For a long time, the U.S. and China enjoyed a relatively low-tariff relationship. However, in 2018, the U.S. began to impose tariffs on a wide range of Chinese goods in a series of actions. These new tariffs, often referred to as Section 301 tariffs, have fluctuated in recent years, affecting billions of dollars’ worth of products and dramatically increasing the cost of goods for many businesses. 

How Tariffs Impact Your Business

Tariffs don’t just affect large corporations; they hit small businesses particularly hard. Here’s how: 

Increased Costs and Squeezed Margins: The most direct impact is the higher price you pay for your inventory. When a 25% tariff is placed on the goods you import, that cost is often passed directly from your supplier to you. This forces a difficult choice: absorb the cost and shrink your profit margins, or raise prices for your customers and risk losing sales. 

Supply Chain Disruption: The unpredictability of trade policy makes long-term planning difficult. A tariff can be announced with little warning, forcing you to scramble for new suppliers or re-evaluate your entire product line. 

Reduced Competitiveness: Tariffs on your products can make them more expensive than those of competitors who source their goods from other countries or who have more capital to absorb the costs. 

The Evolving History of U.S.-China Tariffs

To truly understand the current situation, it’s helpful to see how we got here. The current trade dynamic didn’t happen overnight; it was built on a series of escalating actions. 

• 2018–2020: The U.S. initiated a series of tariffs under Section 301 of the Trade Act of 1974. These came in waves, with rates reaching 25% on billions of dollars’ worth of Chinese goods. While a “Phase One” trade deal was signed in 2020, the majority of these tariffs remained in place, establishing a high-tariff baseline. 
   

• 2020–2024: During this period, the tariffs largely stayed in place. The Biden administration conducted a formal review of the existing Section 301 tariffs but opted to maintain them, signaling that the high-tariff environment was here to stay. In 2024, the administration even announced new, targeted tariff increases on specific sectors like electric vehicles (from 25% to 100%), solar cells (from 25% to 50%), and semiconductors (from 25% to 50%). 
   

• 2025: In April, the U.S. adopted a new reciprocal-tariff framework. This introduced a 10% baseline duty on most imports overall and set country-specific higher rates for certain partners—including China. 
   
  Later that spring, tariffs between the U.S. and China escalated to unprecedented levels before a temporary truce was reached. 
   
  Another key change: the de minimis exemption (which allowed shipments under $800 to enter duty-free) was ended for China and Hong Kong on May 2, 2025, and then suspended for all countries effective Aug 29, 2025. 

The Current State of U.S.-China Tariffs (September 2025)

• U.S. duties on PRC goods: The U.S. is applying a 30% reciprocal/IEEPA tariff layer to China-origin imports under a tariff truce announced May 12, 2025 and extended to Nov 10, 2025. This stacks on top of existing Section 301 rates (often 25% or 7.5%) and any MFN duty, so many products face a total rate higher than 30%. 
   

• China’s duties on U.S. goods: China reduced its reciprocal tariff to 10% for the same period (also extended to Nov 10, 2025). 
   

• De minimis: De minimis was ended for China/Hong Kong on May 2, 2025 and suspended for all countries on Aug 29, 2025. CBP is actively enforcing the change. This means low-value parcels now clear formal customs with applicable duties. 

Building a Resilient Supply Chain in a High-Tariff Era

Adapting to the new trade landscape requires a proactive and strategic approach. Here are some key strategies to help your business navigate tariffs and build a more resilient supply chain: 

• Diversify Your Sourcing: Don’t put all your eggs in one basket. Many businesses are exploring alternative manufacturing hubs in countries like Vietnam, Thailand, Malaysia, or Mexico. This “China Plus One” strategy reduces your exposure to U.S.-China trade policy risks and can open up new opportunities.

• Re-evaluate Your Product Pricing: Conduct a thorough analysis of your product costs, including any new tariffs. Adjust your pricing strategy to reflect the new reality. Some businesses find that a small price increase is necessary, while others focus on creating higher-value offerings that justify the cost. 

• Utilize a Modern Fulfillment Network: The old model of a single warehouse in the U.S. receiving all your inventory from overseas is no longer the most efficient. Instead, consider a fulfillment network with strategically located warehouses around the world. This allows you to store inventory closer to your global customer base and manage your supply chain with greater flexibility. 

• Automate and Simplify Your Logistics: Manual logistics processes are prone to errors and delays, which become even more costly in a high-tariff environment. By leveraging technology, you can get real-time visibility into your inventory, orders, and shipments, allowing you to react quickly to any disruptions.

The Bottom Line for Your Business

While the U.S.-China trade relationship is complex and constantly evolving, one thing is clear: adaptability is key. Small businesses that thrive in this environment are those that build resilient, diversified supply chains and leverage technology to gain a competitive edge. 

This is where a logistics partner like Zhenhub can help. Our tech-driven platform and global network of eCommerce fulfillment centers are designed to give you full visibility and control over your inventory, orders, and shipments. By offering strategically-located warehouses and multichannel integrations, we help you overcome the challenges of a global supply chain so you can focus on what you do best: growing your business. 

Ready to take your business global? Explore our solutions today and see how simplified logistics can make your international e-commerce a reality.

Ensuring your items are shipped out with all the required documentation is a proven method to prevent serious shipping problems. 

Your business can access new markets and exciting growth opportunities through international shipping. Before expanding to other countries, online merchants must know each nation’s export and import laws. With that in mind, you’ll need the appropriate shipping documentation for every order.

Documentation that satisfies the requirements and laws established by the countries of origin and destination is essential to international trade. It’s vital to have comprehensive information on your shipment, company, and the reason for your sending. If required, you will also need to secure the appropriate licensing for your items.

Your forwarder has to receive the shipping papers you offer them, regardless of whether you are exporting or importing. How quickly your shipment arrives at its destination depends on the shipping documentation’s accuracy. Correctly completing documents affects the fees you incur.

Import and export laws are constantly changing. Staying on top of your shipping commitments might be challenging as time passes, but accomplishing them well is key to successful shipping.

The Importance of Shipping Documents

As the name implies, shipping documents are papers required to move objects from one place to another. They consist of relevant documents, paperwork, and certifications that offer details on the shipment. The item’s description, specifications, quantity, price, ship date, delivery address, and shipment method are often included.

Some documentation may be needed depending on the type of products being shipped, the delivery location, and the shipment method. Waybills, business invoices, packing lists, and certificates of origin are needed for most goods.

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These documents ensure that shipments are delivered on schedule and to the correct locations. This can be done as there’s information about the product being transported. They help couriers and delivery teams choose the most effective route and product delivery method. 

These documents are also required for international shipping. It will guarantee that the cargo complies with import laws as it travels through different geographic regions. Ensuring that all the necessary paperwork is supplied with accurate information can expedite the process of clearing customs and facilitate prompt overseas delivery.

Legal Standing

Shipping documents are critical documents in terms of law.

They prove the contractual agreement between the parties engaged in the shipment. These documents will also be the foundation for legal recourse in a dispute.

Efficient Shipping Operations

Complete shipping paperwork increases operational efficiency.  You can accelerate cargo handling and reduce the possibility of delays by having complete documents. Having the proper documents streamlines customs procedures as well.

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Faster Financial Transactions

Shipping documents provide evidence of adherence to predetermined conditions. Complete records facilitate faster financial operations. When papers are approved and audited quickly, you can expect prompt payment release after fulfilling contractual duties.

11 Shipping Documents You Need To Know

International shipping documentation comes in a range that may be included with shipments to ensure compliance with destination country laws. The country of origin will also have a different set of papers needed. Finally, other entities that assist in transferring a shipment—such as shipping couriers and logistics companies—may require these shipping documents.

But some are specific to the kind of goods you are transporting and the locations of your origin and destination. Therefore, you know which papers are needed for your package before shipping.

1. Proforma Invoice

All processes in an export transaction often begin with an inquiry regarding one or more of your items. A quote request can be part of such an inquiry.

If the request for a quote originates from a domestic client, you most likely have a standard quotation form to utilize. However, your quote would be a “proforma invoice” for overseas transactions. Your overseas prospect may want a proforma invoice to accomplish several things. These may include financing, initiating a letter of credit, obtaining the necessary import permits, and other processes.

When correctly filled out, a proforma invoice will resemble a commercial invoice. The following are specified in a proforma invoice:

• Both the seller and the buyer in the deal.
• A thorough explanation of the products.
• The goods are categorized under the Harmonized System.
• Total cost 
• The payment conditions for the sale are usually represented by an Incoterm currently in use.
• The specifics of the delivery, such as the cost and the method of delivery of the items
• The currency used in the quote, whether US dollars or another currency

2. Commercial Invoice

The proof of sale required for all overseas shipments is the commercial invoice. These are often made with the help of an invoice maker. Commercial invoices often include information like the order and PO numbers. But generally, they are very similar to a proforma invoice. 

Standard invoices and commercial invoices are nearly identical. Take note that the former must contain additional information to facilitate customs clearance. 

3. Packing List

An export packing list could be more comprehensive than a packing list or packing slip offered for domestic shipments.

Export packing lists are an itemized inventory of all the commodities in a shipment and all relevant information about each item. Significant documents, like a bill of lading and a letter of credit, may be issued using this document. The packing list is necessary for goods transported overseas to pass customs. A dispute between the shipper and the courier can be used to double-check contract agreements.

4. Certificates of Origin

Several countries require a certificate of origin to determine where the items originated. Typically, an official entity such as a chamber of commerce or a country’s consulate office must sign these certificates of origin. They must be supplied in compliance with the laws and guidelines of the importing nation. Even if your business invoice specifies the country of origin, you may need to provide a separate certificate of origin.

5. Certificate of Free Sale

This document, also known as an export certificate, certifies that the goods being sent are free from limitations in their nation of origin. It also provides legal proof that the items are sold or distributed lawfully on the open market. An export certificate of free sale certifies that the appropriate regulatory bodies have cleared the product.

This paperwork is vital for some products, such as food, medical devices, biologics, and cosmetics.

6. Shipper’s Letter of Instruction

Your freight forwarder manages the shipment of your products with a carrier and assists in ensuring proper logistics on your end. They are among the most important people you will work with during export.

You, the exporter, either engage a freight forwarder to work for you, or the buyer hires a freight forwarder in the event of a routed export transaction. This will depend on your agreed-upon terms of sale.

You must supply a Shipper’s Letter of Instruction (SLI) with all the details required to transport your products correctly, regardless of who hired the forwarder. 

7. Inland Bill of Lading

This is a contract of carriage for the shipment of goods by road, rail, or inland waterway.  It is assigned to the shipping courier rather than the buyer. It indicates the location of the items’ transportation and proves that the products have been picked up. 

8. Ocean Bill of Lading

As its name implies, this document is necessary for shipments that traverse international waterways. It acts as a contract between the exporter or seller and the delivery courier to guarantee that the buyer receives the goods and that the seller is paid.  

9. Air Waybill

This is an agreement between the courier and the seller to carriage items transported by air. It is non-negotiable and functions as a receipt for the goods after they are delivered to the destination airport by the airline courier.

10. Letter of Credit

This is a widely used payment method for purchases made internationally. It is irreversible by default since it is formal and legally binding. The bank pledges to pay the seller on the importer’s or seller’s behalf.   

11. Dangerous Goods Forms

You must send your items with the relevant dangerous goods form if the International Air Transport Association (IATA) or the International Maritime Organization (IMO) classify them as dangerous. It might be challenging to ship hazardous chemicals or items. The right personnel at your business must receive the necessary training before you package, label, and record these shipments correctly.   

A thorough understanding of the shipping documentation procedure can help you deliver your goods faster and avoid shipment delays. Shipping these items internationally may be complicated and time-consuming. This is due to each country’s many policies, rules, taxes, levies, and shipping documentation requirements. Allocate enough time to conduct the appropriate research and look for practical solutions to shipping concerns.

When ready, you must obtain the appropriate shipping documents to export your goods to another country. Prepare all the necessary information to ensure every form is filled out correctly. Even minor differences in your papers cause shipment delays. Planning ahead of time with shipping documents is essential for hassle-free international shipping. 

Preparing your items for international shipping is easier with ZhenHub. Our complete logistics software suite makes it easy for you to track overseas shipments. Get real-time updates on parcels and get connected to our global fulfillment network. Sign up for free and get access to our online dashboard. Still not sure which shipping documents you need? Contact our fulfillment experts to learn more.

According to the 2022 IBM Research Insights report, about 4 out of 5 buyers mention sustainability, health, and wellness when selecting a brand. Businesses are changing their supply chains and logistics frameworks to fulfill these new demands. As more CEOs place sustainability higher in their company priorities, that transformation is gradually taking place. 

Integrating environmental concerns into the logistics process is referred to as green logistics. This strategy analyzes and employs effective and sustainable supply chain management techniques to reduce the ecological impact of logistical activities. Of course, these changes must also maintain maximum efficiency and effectiveness.

It is sometimes called “Eco-logistics,” with many logistics managers looking for sustainable ways to reduce overhead expenses and carbon impact. 

More people are now purchasing their daily necessities online thanks to the growth of online sales and delivery services in recent years. These purchases can require transferring from one country to another, lengthening the supply chain, and requiring more logistics. All of these processes impact the environment, increasing emissions and pollution levels.

Facing this dilemma, preserving and protecting the environment is now more important than ever. That is the aim of green logistics. The best way to move goods and information from one place to another has traditionally been the main objective of logistics. Reducing the amount of fuel consumed is a common strategy that is thought to be “eco-friendly.” Many companies employ this technique in an attempt to become more sustainable. However, this is insufficient on its own. Green logistics must balance environmental and economic activities to preserve resources and safeguard the environment.

The Importance of Green Logistics in eCommerce

Businesses that switch to greener logistics see improvements in all business areas, including profitability and corporate responsibility. Customer demand is the most impactful factor. Customers (enterprises and consumers) are moving their loyalty to organizations that make major, long-term moves toward a sustainable future. These people witness the effects of climate change daily. Customers and investors will readily support a circular supply chain.

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Shipping is one of the worst polluters, producing significant greenhouse gas emissions. The World Economic Forum projects a 36% increase in delivery fleets by the end of 2023 in 100 major cities worldwide. This growth is predicted to result in a 30% increase in carbon emissions.

In other words, faster delivery leads to higher traffic volumes and congestion. These are all side effects of consumers wanting their orders to be fulfilled quickly. A significant environmental trade-off exists for businesses attempting to meet customer demands for quick delivery. Most of a company’s overall carbon footprint has emissions from its supply chain.  As next-day and same-day delivery become the norm, this will only worsen.

According to a McKinsey analysis on eCommerce in Japan, an 80% increase in deliveries will mean a corresponding 20% increase in CO2 emissions. As many as 71% of routes might be 25% longer by 2030. Currently, some businesses are not utilizing precious space in trucks and vans to prioritize speed above the environment.

Green logistics is one of the many effective programs to combat the deteriorating ecological impact. Analyzing retail supply chains and delivery information across enterprises can be done with the help of modern logistics technologies. 

Online merchants should be aware of the significant effects switching to environmentally sustainable solutions or green logistics would have on them.

Reduced Gas Emissions

Reduced greenhouse gas emissions are one of the most important benefits of green logistics. Following environmentally friendly best practices in logistics helps to lower your supply chain’s carbon footprint. This covers everything from cutting down on energy use to improving the efficiency of logistics processes. 

Minimize Waste

Waste is reduced with the use of sustainable logistics. Instead of maintaining paper files, most businesses are centralizing and digitizing their documentation, records, and operational data within integrated web systems. Since customer insights, inventory information, and order management are all in one location, operations are streamlined. Keeping records online drastically reduces the amount of paper waste required for manufacturing. 

Even practicing proper recycling and switching to renewable resources can have a sizeable impact on your waste management. 

Connect with Your Customers

Retail and commercial customers want faster deliveries and the ability to make simple returns. They want to know where their products are in their journey. Consumers care if they were obtained sustainably. Businesses that provide these insights attract new clients and maintain their loyalty.

Stronger Brand Reputation

eCommerce businesses can gain a competitive edge by implementing and publicizing concrete initiatives to improve green logistics in their supply chain management. Customers are already willing to pay extra for goods from companies that use sustainable business strategies. Being an eco-conscious merchant attracts positive attention from potential customers. 

Getting Started With Green Logistics

eCommerce merchants of all sizes can gain from embracing green logistics techniques. Common sustainable logistics practices include diversifying product sourcing, increasing warehouse efficiency, and lowering transportation emissions. When used independently or in tandem, these tactics can benefit your entire logistics chain.

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Source Ethically

A company’s purchasing and procurement policy may include sustainability criteria when evaluating suppliers’ proposals. The viability of buying eco-friendly goods can be adequately assessed by noting product attributes, manufacturing procedures, and supplier location. Practical applications of this would be working with certified and regulated manufacturers or adopting eco-friendly packaging. A supplier close to your distribution hub can significantly reduce your carbon impact.

Optimize Your Transportation Fleet

Using eco-friendly vehicles like drones and electric cars is a simple solution for a greener supply chain. Although it seems like a straightforward answer, it is quite expensive. Small businesses may not be able to afford these vehicles. Route optimization is an alternative tactic that can significantly increase the sustainability of your deliveries.

The overall fulfillment distance can be decreased with the help of efficient routing. It lowers fuel costs and greenhouse gas emissions. A logistics management system frequently supports route optimization. These programs aid in streamlining last-mile delivery and all phases of order fulfillment, from processing to returns.

Streamline Warehouse Operations 

A warehouse that operates 24/7 can rack up some very costly utility bills. Businesses can use a range of green logistics techniques to reduce their energy usage to meet these energy usage issues. One tactic would be investing in renewable energy sources like solar or wind to power your warehouses. A popular strategy that is gaining popularity is the concept of dark warehouses. These distribution centers use AI-powered robots for various tasks and can therefore operate without lights. It’s efficient but also cuts down on electricity costs.

Increase awareness and motivate employees to adopt green behaviors by educating your staff about the value of decreasing your carbon footprint. Establish a waste sorting procedure based on recyclable resources. Promote the reducing, reusing, and recycling of materials.

Reverse Logistics

Reverse logistics refers to returning a product to its origin, usually a warehouse or distribution center, after it has been delivered to a client. You can increase the effectiveness and sustainability of your organization by using a logistics system to manage your reverse logistics. It can also optimize your delivery procedures.

Go Digital

Paper is everywhere in shipments. You’ll find many documents that come with every delivery: order information, invoices, and proof of delivery, to mention a few. A retail or logistics organization can cut down on their paper dependency. With the help of technological developments and modern solutions, businesses can easily digitize all processes. Using online and digital tools, merchants can reduce their reliance on paper and save more trees.

Although only some are implementing green logistics solutions, the eCommerce market is sending a clear message. A business addressing environmental challenges in its supply chain will find that greenness pays off. As companies expand their last-mile logistics operations to meet rising demand, this becomes increasingly crucial. 

Businesses must prioritize sustainability in their logistics processes, including technology adoption and working with green partners. Ultimately, this is to establish cost-effective, green logistics successfully. These actions are necessary to have an impact and let stakeholders and customers know about it. 

eCommerce companies that adopt eco-friendly practices will be able to not only please customers but also significantly reduce carbon emissions and fuel consumption. Producing energy savings for their business helps leave our world in a better state than it is today. 

ZhenHub helps you get started with green logistics by integrating smart solutions into your supply chain. Be more efficient with tech-driven eCommerce fulfillment centers across the globe. Sign up for free and explore our all-in-one logistics platform.

Discovering unexpected charges on a freight invoice can be annoying, especially when they happen often. It also doesn’t usually help develop a successful relationship with a carrier.

Most of the time, these are just adding extra fees. Logistics teams, whether shippers or freight service providers, don’t like accessorial costs. Accessorial fees have an immediate detrimental effect on customer service and the bottom line.

But what exactly are the accessorial charges?

In general, accessorial charges or fees are described as extra fees or surcharges imposed by the carrier for services above and beyond simple shipment delivery. Carriers frequently impose additional fees for various forms of transportation, such as truckload, less-than-truckload, and package delivery.

The good news is by understanding how they work; accessorial costs can be minimized or even eliminated. Once familiar with the fundamentals, you can better organize your shipments to reduce additional costs.

Why Accessorial Charges Happen

The process of transporting products is rarely as straightforward.. Deliveries frequently change, take longer than expected, or require expert instruments to handle. These take time, money, and/or resources.

A freight accessorial fee may be levied for many different reasons. But they usually fall into three groups: administrative, distance & time, or equipment.

1. Administrative

These fees are frequently the result of a bill of lading (BOL) error discovered at the carrier terminal. Loads larger or heavier than allowed may need special permissions, which could result in additional fees. These avoidable costs can be simply prevented by double-checking the order accuracy. 

2. Distance & Time

Delivery fees are very common and usually, happen when a delivery window is missed. Many times, shipments may need longer time or even more stops to reach their destination. Sometimes unpredictable factors affect lead time. Delivering the product or finding another route will incur additional costs depending on how long it delays the process.

3. Equipment

Some shipments need extra hardware or tools to load, deliver, or carry. For example, consider medicine refrigeration or a lift gate for facilities without loading docks. Extra accessorial fees can be applied if those conditions aren’t specified before pick-up.

Usually, the consignee is responsible for paying the delivery costs. In recent years, free shipping has become a major selling point in the eCommerce industry. Outside of eCommerce, the consignee still shoulders most of the transportation costs.

Shipping systems are often used to determine the shipping costs at the time of shipment to bill the consignee. The WMS or ERP is notified of these charges, so they get included in the client’s invoice.

Eight Common Types of Accessorial Charges

Although they are only part of your freight charge, these additional costs might be difficult to control. To control your freight costs, you must know which extra charges you can anticipate and which ones you should avoid.

Most of the time, accessorial fees are something that LTL or parcel carriers will charge for overnight or express deliveries.

1. Detention

Incurred by a carrier for extra time spent loading or unloading at a shipper or recipient. Drivers typically waive the detention fees for the first two hours of waiting at either facility. This is because some warehouses have a grace period or leeway. They will then charge an hourly cost after the leeway until the loading or unloading procedure is finished.

2. Residential Delivery or Pick-Up

The shipper must indicate whether the address is commercial or residential when they first request a rate. These deliveries frequently involve navigating residential streets. Shipments in residential areas need to be unloaded with more effort and time.

Fees are applied to account for it if the final delivery is suddenly changed to a residential address. This happens if the original pick-up point or delivery address was at a warehouse or distribution center.

3. Redelivery

A carrier might need to redeliver a package if no one is available to accept it. This could also happen if the recipient rejects the consignment or the necessary equipment is not on site.

4. Liftgate Delivery

Commercial trucks directly load and unload the freight using a loading dock. A liftgate is needed to lower or raise the freight to the proper level when a loading dock is unavailable. Not every truck has a liftgate installed. If there isn’t one, the shipper might have to pay extra fees if the delivery can’t be made on time.

5. Lumper or Driver Load

Unloading a vehicle frequently falls outside a driver’s standard employment duties. As a result, they bill for the labor whenever the driver has to load or unload the freight. Additionally, third-party workers—often called “lumpers”—are hired to unload freight at sizable distribution warehouses. As a “lumper” fee, distributors pass these fees to shippers. Unloading fees may be charged in cold storage or complex facilities to cover the cost of the particular handling necessary to offload freight.

6. Oversized

There can be an extra fee if your freight takes up more room than the pallet size. Carriers have to modify the truckload to fit all the items. Take note that your items would be more than 12 feet long for them to be considered oversized.

7. Truck Ordered and Not Used (TONU)

TONU, or truck ordered but not used, is applied when a truck order is canceled. After all the terms have been agreed upon and approved, the broker cancels the truck before loading the goods. For same-day cancellations, there are typically fees. There is a grace period where the truck can be canceled without penalties.

 This can happen for several reasons, such as the buyer discovering a lower price for the product elsewhere. It could also occur if the shipper lacks sufficient inventory to fill the load.

8. Layover

The driver might need to stop for one or more days if the truckload cannot be loaded or unloaded properly. As a result, the driver may incur additional costs and miss one or more work days.

Planning Around Accessorial Charges

Accessorial fees are a permanent fixture of the transportation sector. But if you plan properly, you won’t need to constantly wire additional payments for these fees.

You may have noticed that some of these charges are applied only after delivery. For instance, you’re unlikely to schedule a layover or detention in advance. The easiest method to prevent paying more in most cases is simply communicating openly in advance. You can find estimates of individual charges by coordinating with your partner carriers. When seeking an estimate, it will probably cost you less if you mention them immediately. This will allow the transportation company more time to prepare for particular needs.

It might cost extra as the carrier might charge more if they receive something else and get blindsided by new requirements. They have to work quickly to acquire equipment that complies with those unique needs, which might not be readily available in your area.

Accessorials usually begin during the booking stage of a delivery or transport. Errors such as incorrect classifications or irregularities with the BOL can be avoided through process automation. As a result, human error is minimized, and process compliance is verified during shipping execution.

End-to-end shipment visibility also makes it easier to anticipate potential problems, prevent unforeseen equipment additions, and plan the cargo, delivery, and unloading timing.

Knowing your shipping facilities, the goods you are transporting, and the receiver’s facilities and logistical procedures will help you prepare for accessorial expenses. You can more accurately foresee accessorial costs if you understand your supply chain well.

Determine the difficulties the carrier will encounter at the pickup and delivery docks and discuss them in advance with the carrier. Accessorials may sometimes be negotiated out of the tariff throughout contract negotiations.

Create trusting, long-lasting relationships with your partner carriers. Consider every accessory charge carefully and consider how it affects your budget. Consider whether the charge might have been avoided and investigate whether the issue was with the shipper, recipient, or carrier. Finding the answers to these questions will undoubtedly result in lower accessorial costs as well as improved flow and distribution of your products.

Explore digital solutions to dealing with accessorial charges. ZhenHub helps you manage your shipments digitally, eliminating the need for tedious tasks such as inspecting paperwork. Get full visibility over your entire fulfillment operations on our easy-to-use platform. Our trackable shipping services are at your fingertips when you sign-up for free.

This article compares and contrasts the bonded warehouses in China and the United States. You’ll understand the benefits and drawbacks of each type so you can make an informed decision on where to store your inventory.

If your business has operations abroad, then it is likely you’ve already encountered bonded warehouses. They serve the same purpose as normal, un-bonded warehouses. A customs bonded warehouse is a secure location to store, export, and import goods. 

Warehouses are great for business operations because they keep your inventory in order and facilitate fulfillment. Nowadays, such buildings are at the forefront of a digital transformation, allowing vendors seamless management through apps, software, and even their phones. 

Utilizing warehouses for business growth is essential. Any merchant seeking to attain long-term growth and scalability should consider the use of warehouses seriously. 

Why Use a Bonded Warehouse?

As you know, warehouses are where goods are kept and processed before delivery. In the case of bonded warehouses, these buildings can either be owned by the government or a private entity. Usually, when an importer receives goods from another country, they must immediately pay taxes and customs duties. Importers must also have the goods they received duly inspected upon arrival at their warehouse, regardless of their destination.

The major difference in bonded warehouses is that the goods can be received and held until duties and inspections get done by customs agents. In most cases, payment of taxes gets deferred until customers buy the items. Doing this can lead to cost savings and added convenience for potential buyers.

Companies can also manage import taxes better by using bonded warehouses. You can maintain inventory in bonded storage to avoid a significant upfront tax payment if business owners don’t sell imported goods immediately.

After that, importers can keep the funds and use them however they see fit. Since appropriate tariffs are only paid when the goods are exported after being sold, you can have greater financial flexibility by offsetting duty payments from the sale of the goods.

Stock with low or erratic demand can also be kept for extended periods in customs-bonded warehouses. Companies can move their products for shipping once the need for it increases. If it doesn’t, then some bonded warehouses offer duty-free re-exportation.

Warehouse authorities can also offer you a bond protecting you from monetary loss once a shipment is released and after settling the tax fees 

Bonded warehouses are great for risk management. They are the preferred choice for storing restricted goods. The paperwork and regulatory requirements for importing restricted items are significantly higher than for regular commodities. 

Additionally, you can only keep regulated items in a warehouse for a certain amount of time before it needs documentation — which can be challenging for importers. Unlike duty deferment, importers can hold restricted goods for up to five years in customs bonded warehouses since they are exempt from the probationary term.

Bonded warehouses maintain strategic locations, allowing you to hold stock closer to where your buyers are. The warehouse staff can also handle your labeling, testing, and packaging on your behalf.

The Differences between Bonded Warehouses in China and the US

Adopting the bonded warehouse model is excellent for flexibility in your finances and administrative tasks when serving different international markets. China and the United States are two economic powerhouses home to major manufacturing plants across various industries. 

Cross-border selling is made more accessible due to increasing popularity of eCommerce. Gaining a foothold in these countries can easily be done by contracting the services of a bonded warehouse. That said, China and the US have very different import and export regulations, so it is important to take note of their differences.

Bonded Warehouses in China

Free trade zones (FTZ) are where almost all bonded warehouses in China are. As of April 2020, 105 special economic zones are scattered across 30 Chinese provinces. You must use authorized trucks to transport goods into a bonded area. Depending on your warehouse’s region, it may be an added expense. Pre-declaration is necessary, and companies entering these areas must report price changes to customs.

Registration is simple and fast. And many warehouses already have streamlined processes that allow for efficient customs clearance. Moving goods between FTZs and abroad is possible without incurring additional taxes and charges from Chinese customs.

The “Tax Policy for Cross-Border eCommerce Retail Imports,” states that customers who buy items worth more than a certain amount must pay taxes, such as customs and consumption tax. Customs in the area have access to digital data on these purchases. Currently, single transaction purchases under 5,000 RMB are entitled to a reduced rate of 70% VAT and 0% duty. The same applies to a total annual spend of 26,000 RMB for a single person.

However, if Chinese customs cannot access the electronic records of an imported good, those items will be subject to a different set of parcel tax rates. These rates go for 13%, 20%, and 50%, depending on the bulk and nature of the items. Exemptions are available for payable tax amounts under 50 RMB.

Chinese authorities have published the “Positive List,” a directory of all items and goods businesses can sell through cross-border eCommerce. Only properly tagged products with their tariff code can be distributed, sold, and stored. 

Bonded Warehouses in the US

Bonded warehouses in the US are under the jurisdiction of US Customs and Border Protection (CBP). These locations all comply with the Code of Federal Regulations (CFR), a codification of the general and permanent rules that all business entities must adhere to.

A major advantage of US bonded warehouses is the period in which items can stay in storage. The CFR sets this up to 5 years from the date of importation. It’s worth noting that it can also be manipulated and undergo manufacturing without the need to pay duties.

There are eleven classes of bonded warehouses, all categorized by what items they can store.

• Class 1 – Properties or spaces that can be owned or leased by the US government. They are primarily used for special requests by port authorities. Merchandise that the CBP also seizes is held here for inspection.
• Class 2 – A private warehouse used by an importer to hold goods and items held by the owner.
• Class 3 – A public warehouse exclusively used to store imported goods.
• Class 4 – Storage for heavy and bulky items and containers for liquid merchandise. Buildings and enclosures used to import animals also fall under this classification.
• Class 5 – Facilities and buildings used to store grain.
• Class 6 – Bonded warehouses are used to manufacture bonded goods meant for exportation. These products can include imported materials or materials subject to internal tax in their production. Imported tobacco meant for domestic consumption and exportation also qualify for this classification.

• Class 7- Facilities equipped with smelting and refining imported metal bearing materials for exportation and domestic markets.
• Class 8 – A facility involved with cleaning, sorting, and repacking imported merchandise. The CBP strictly monitors manufacturers not covered under Class 8, including all services but at the proprietor’s expense.
• Class 9 – Duty-free stores.
• Class 10 – Bonded warehouses that store duty-free merchandise for sale aboard aircraft during international travel. It doesn’t cover items for sale in duty-free stores. 
• Class 11 – Storage for General Order (G.O.) items. G.O. is any merchandise not claimed or entered for 15 days after arrival in the US.

All commodities except for perishables and explosives other than firecrackers are subject to duty. Companies may use the retail sales area of a warehouse to store any commodities, excluding duty-free items.

People leaving the US are free to purchase the products. All the goods that enter the warehouse must be accountable. The creation of an inventory list and routine record auditing is required.

Domestic and bonded products must be kept apart. They are not permitted to mix with unbonded commodities.

The applicant must send a written request for the establishment of a bonded warehouse to the local CBP port director. They must also describe the site and specify the type of warehouse they wish to build.

The application must specify whether the warehouse is to be used exclusively for storing or treating goods belonging to the applicant. or if it is to be used as a public bonded warehouse, except Class 2 and Class 7 warehouses.

Choosing the Right Bonded Warehouse for Your Business

When you import a lot of items from another country, costs can be high due to additional customs and taxes on top of the price of the goods and shipping. Bonded warehouses allow retailers to choose when they pay by releasing the merchandise as needed instead of spending it all at once. As a result, importing bulk goods for your eCommerce firm is far less expensive.

Bonded warehouses are frequently the best option for keeping prohibited items like alcoholic beverages, animal byproducts, and specific food items The paperwork and additional regulatory restrictions make importing restricted goods challenging.

Many direct-to-consumer brands prefer using bonded warehouses as they expedite the processing of goods at customs with minimal risk. When choosing a partner bonded warehouse, consider the location and the markets it serves. If it brings you closer to your customers, you may enjoy faster shipping times and more comprehensive fulfillment services. Carrier rates may also be more favorable. 

Choose a warehouse that is well established and connected locally. Safety and security are also major factors to consider. At the end of the day, you must be familiar with the laws and regulations of the bonded warehouse, whether it’s China or the USA. Working with a bonded warehouse should make storing and transporting international goods as hassle-free as possible. 

ZhenHub lets you expand your market internationally with globally-connected eCommerce fulfillment centers built for multi-platform integrations. Our network of strategically-located warehouses helps you reduce storage and shipping costs. Sign-up at our website now and get instant access to our logistics software solutions.

Last year, despite lockdowns easing up, 57% of shoppers still did their shopping online, with only 43% heading in-store. Even with the opportunity to return in-store and do shopping in person, consumers still preferred to buy online. 

eCommerce still commands a huge chunk of the retail market space in the “new normal.” Customers have higher expectations when buying online, from fast and free shipping to memorable unboxing experiences. 

The holiday shipping season builds up by the end of Q3 and kicks into high gear by Q4 (from October to December). During this season, large order and shipment volumes will spike, causing supply chain management disruptions. If unprepared, brands may struggle to keep up with demand. Managing inventories and multiple shipping carriers put a lot of pressure on businesses to deliver packages on time.

Preparing your business for the holiday rush involves careful planning as well as timely help from efficient digital tools and solutions.

Three Trends for Holiday Shipping in 2022

In a year still packed with uncertainty, buyers and businesses have drastically changed how they approach the holiday shopping season. The coronavirus isn’t going anywhere, and lockdowns and restrictions could still happen, limiting in-person gatherings and shopping.

Online sales are competitive as ever, with eCommerce sales on the rise for the past two years. However, increasing prices and downward economic trends will have home and business managers planning their holidays early.

1. Holiday Shopping to Start Earlier

With rising prices, customers believe the best time to buy gifts is as early as July to get their money’s worth. Purchasing a gift in December will be much more expensive than in September. 

Annualized prices rise between 6% and 8% per month, so the earlier the purchase, the better. Salesforce reports that 42%  more shoppers worldwide and 37% more in the U.S. plan to start buying gifts earlier as a way to get better deals. Concerns regarding product availability are also a prime reason for early shopping.

As such, notable shopping days such as Black Friday and Cyber Monday will likely generate a smaller share of holiday retail sales. It could also be a prime opportunity to unload on excess or unwanted inventory that got stocked up during the pandemic.

2. Lower Prices are a Priority

Buyers are keen to compare different pricing of the same product to ensure they get the best possible deals. Value is king, even if it means forgoing loyalty and convenience. And switching brands isn’t a problem as long as it means customers get their money’s worth. 

Consumers want to find products that fit their budgets despite rising inflation rates. Making a profit is also challenging for businesses due to higher labor, transportation, and fuel costs. Retailers should explore appealing marketing to help generate buzz for an added edge in a low-price competition. 

3. The Rise of Marketplace Sales

Online marketplaces will see the most growth in the 2022 holiday shopping season. It’s more convenient for many buyers, but these same marketplaces offer discounts for bulk purchases. In 2020, eCommerce accounted for 25.7% of all retail holiday revenue.

Mobile commerce will continue to boom with a projected growth of nearly double the sales between 2020 and 2025. 

Customers have gotten used to getting everything they need and want online, which likely won’t change for their holiday shopping. 

Preparing for the Holiday Shipping Rush

As the holiday season draws near, retailers rely on this time of year for a  hefty portion of their annual revenue. The start of October will be here before you know it, so it pays to prepare as early as possible. Your business will need to keep up with extraordinary demand and prepare for potential supply chain slowdowns. 

With significant changes coming to the shopping environment, here are some strategies to consider to help your business cope with holiday shipping.

1. Stock up on Holiday Inventory

A study by Adobe Analytics reports that out-of-stock messages have surged by 172% since January 2020. Not having products in stock is a surefire way to turn off customers and have them looking elsewhere. Coordinate with partners constantly and ensure that you have enough supplies of your best-sellers to last you throughout the holidays. 

Be mindful of delays during this period as well, as the influx of many moving orders will burden logistics operations. Better to replenish your inventory early, so you only need to think about getting those orders moving once the shopping surge begins. Avoid long wait times and prevent customers from getting frustrated when they learn their preferred gift is out-of-stock.

2. Expand your Sales Channels

There are a lot of opportunities to make sales on multiple selling platforms and channels. Of course, expanding to a new marketplace isn’t always easy, but you have more chances to reach a broader range of customers. Convenience is key for consumers; each has their preferences of where to shop. 

Make the holiday shopping experience as seamless as possible by offering your inventory on a wide range of marketplaces and sales channels. You may even want to explore a hybrid set-up of paying online and having in-store pickup if you maintain a physical storefront.

3. Ensure Reliable Delivery and Fulfillment

Tighten up your logistics for holiday shipping as it can make or break the season for your business.  So keep in touch with your fulfillment and shipping suppliers. Be aware of shipping deadlines locally and internationally to help you avoid delays and plan around heavy traffic among freights. Forty-five percent (45%) of customers are unlikely to purchase from a business again if a package is delivered late. 

Offer various shipping options for local and international customers and be flexible with shipping rates. Letting your customers know how much they should pay for shipping or setting a flat rate for all purchases can avoid abandoned carts.

You may also consider working with a third-party logistics (3PL) provider to make the busy holiday shopping season more manageable. Partnering with a 3PL can simplify your logistics processes and free-up personpower for other important tasks.

4. Provide Exceptional Customer Service

The holiday season is for meaningful celebrations, reunions, and great memories. No one wants to experience last-minute changes or disappointments regarding their purchases. Maintaining constant communication is key to managing customer expectations. Let your consumers know where their product is during shipping and when they can expect it to arrive. 

But always be prepared for the worst. Something will inevitably go wrong, so have a system that will automatically pinpoint roadblocks and delays. Great customer service goes a long way in building brand loyalty. Keeping customers in the loop gives off the impression that you care about each purchase and you’re doing your best. 

Making Holiday Shipping More Profitable

Supply chain issues will persist throughout 2022. But as a business owner and retailer, you can focus on overcoming these challenges to make this holiday season the most memorable one yet. 

There are many creative ways to bring more sales to your business during the holiday season. As online shopping has become a preferred method of purchasing gifts, offering special discounts and promotions makes good business sense. Though the logic may seem strange, note that it can cost five (5) times as much to attract new customers compared to keeping an old one. Find the right balance of enticing customers to buy without diminishing the sale value of your products.

Giving extra value to your customers can pave the way to tremendous success in the future. 

Optimizing the checkout procedure avoids many frustrations customers have during the shopping season. Twenty-one percent (21%)of online shoppers in the United States abandoned their shopping carts due to a long, complicated checkout process. By keeping the process simple, fast, and reliable, your business won’t get bogged down by complaints on checkout. 

Shoppers are looking for the perfect gifts this year. They’ll be shopping in-store, online, and across all channels. Make it easy for them to buy whatever they want without any hassle. Don’t wait for the holiday rush to catch up to your business. Seek out every advantage you can get to stay ahead of the competition.

Preparing your business logistics for the holidays is crucial as it will create great customer experiences. Make the customer journey as smooth as possible. You’re also investing in your future by ensuring your customers are happy during the busiest shopping time of the year. 

Make your holiday shipping quick, organized, and transparent with ZhenHub. We offer simplified, robust digital solutions that power your business’s warehousing, fulfillment, and shipping. Be ready for the busy holiday season and ensure maximum customer satisfaction. Get your early start and sign up at our website today!

Every merchant knows that successful online selling requires timely order fulfillment. Unfortunately, shipping in 2022 has been severely affected by massive delays. These problems are due to several factors, including increasing trade tensions between the U.S. and China and the dwindling qualified workforce to operate the ships. As a business, you must be aware of these potential delays and plan for them in your shipping schedules. Doing so can minimize the impact on your business and maintain your competitive edge.

Global supply chains have had a rough time since 2020. Its reliance on maritime transport is so great that 90% of the world’s goods get transported in containers and ships. 

As more products fail to deliver on time, the global shipping industry’s problems continue to pile up. Online merchants must stay current on international affairs impacting the global supply chain.

Understanding the Causes of Cargo Ship Delays

As most of the world’s goods get transported via sea, many countries rely on imports from Asia. In 2021, the value of Chinese imports sent to the United States totaled nearly $43 billion. Furthermore, other major Asian countries supply the U.S., such as Japan, South Korea, and Vietnam.

The COVID-19 pandemic was a significant catalyst in cargo ship delays. For health and safety reasons, much of the world slowed to a crawl as people sought safety in their homes as part of lockdowns. As the doctors and health experts studied the virus, the production and manufacturing of items stopped due to the closure of factories. 

While at home, people almost entirely depended on online shopping and eCommerce to safely purchase essential items. As vaccine rollouts started to ramp up, a return to the pre-pandemic life began in 2021. But as demand grew, inventories struggled to keep up. Other factors such as shipping container shortages and rising transportation costs delay item deliveries. This build-up was noticeable during the holiday season last year. Items were in shipping containers on vessels stuck out at sea, while the offloaded goods moved at a snail’s pace because of a depleted workforce.

Another cause of the cargo ship delays was the widespread implementation of “just-in-time” or lean manufacturing. This strategy encourages an “optimized” inventory stock to save space and supply, meaning warehouses are never full of products. While it is remarkably effective in a stable economy, it is susceptible to sudden market changes, such as the COVID-19 pandemic. As delays began to pile up, many factories reported disrupted production cycles that left businesses scrambling for inventory. Despite this, experts see lean manufacturing as a valuable system.  Pundits see its problems merely as a failure in implementation and a misunderstanding of its core concepts.

“When you have a problem anywhere in the supply chain, it’s going to have a ripple down effect, like playing dominoes,” says Cathy Roberson, founder, and president of supply chain consulting group Logistics Trends and Insights LLC, and former market analyst at UPS Supply Chain Solutions. “If freight is late arriving at the port, that means the time scheduled for the truck to be at the port is wrong; now you have to go back and reschedule. That will cause additional delays and costs; now you have to put the items in a temporary warehouse if you can find space. Incurring additional costs for that. From there, once you finally get a truck, moving it inland you have to constantly reschedule delivery times. Having to juggle all that, monitor that, takes time and takes people and costs extra money.”

Port congestion also burdens logistics and contributes to cargo ship delays. A study by analysts at the Royal Bank of Canada (RBC) found that one-fifth of the global container ship fleet was currently stuck in congestion at various major ports.

“Global port congestion is worsening and becoming increasingly widespread,” RBC’s Head of Digital Intelligence Strategy, Michael Tran.

Important trading hubs in China, the U.S., and Europe struggle to properly manage hundreds of ships coming in daily. 

The State of Cargo Ship Delays in 2022

In 2022, there was hope that the market would show more stability than in the previous two years. Due to events such as the Russian-Ukraine conflict and emerging COVID variants, there is still much uncertainty in the shipping outlook.  

“We don’t see the tide turn in 2022,” said Thorsten Meincke, board member for the ocean and air freight at DB Schenker. Meincke said infrastructure problems, labor constraints, high demand, and reduced capacity will continue to trouble the market.

Retailers and manufacturers find it difficult to take advantage of resurgent economic demand.

Lockdowns in China

As part of China’s efforts to further prevent the spread of COVID-19, especially its more transmissible variants, it has put Shanghai under strict lockdown. As a commercial capital of China and home to the world’s largest shipping port, it has severely affected international markets. 

The Port of Shanghai is bustling with ships as more and more arrive. Last May, the count stood at 344, an increase over the previous month’s numbers by 34%. This development has significantly increased total travel time. The estimated lead time for shipping an item from a warehouse in China to another location on American soil takes 74 days longer. The prolonged wait time means added costs for warehouses and businesses.

While ports have seen more activity this year, mobility is still fairly limited due to a lack of workforce and an inability to move shipments to and from port premises. A distinct shortage of truck drivers leads to a significant decline in the volume of items moved. Although daily case numbers are getting smaller, governments are wary of potential surges, hence modified lockdowns. 

Equipment and Space Scarcity

The constant shortage of equipment and space is pushing up shipping prices in specific lanes. Low schedule reliability levels have forced forwarders to pay premiums for securing the space their goods require, resulting in partially functioning supply chains. Many carriers profited from this development, and the entire industry could bring in $200 billion in profits by the end of the year.

Port Congestion

Ports in Los Angeles and Long Beach have seen some of the biggest congestion in the U.S. Many more in Europe are affected by the conflict between Russia and Ukraine. This conflict has led several key European countries to ban Russian-flagged vessels from their ports. Many ships have since been re-routed, pushing increased container ship activity into other European ports. 

The congestion in US West Coast ports started when demand for goods rose along with lockdowns. Once ships queued up, carriers and shippers began to use the East Coast instead due to its more convenient proximity, causing additional congestion on that side as well. 

Seventy-seven percent (77%) of the world’s ports are experiencing abnormally long turnaround times. Scores of ships remain anchored off the coast of U.S. and Chinese ports, idle and waiting for space to dock. 

Many exporters have chosen not to ship items with low-profit margins, citing losses compared to the soaring freight costs.

Helping Your Business to Cope With Cargo Ship Delays

Cargo delays and poor schedule reliability affect businesses by increasing costs and charges, delaying sales and manufacturing. It also ties up sales and cash flows, lower assets turnover, and a heightened risk of inventory damage and spoiling.

Despite the volatile situation, importers and businesses can take many steps to achieve stability and maintain a positive customer experience. Being aware of innovations and cost-effective workarounds can mitigate the losses incurred from delays.

The first is improving communication between freight forwarders and customers. Delays are inevitable, but communicating with your forwarder will provide a more precise transit time. You can provide customers with timely updates to manage their expectations better. If there are any potential delays, then your team can mitigate and plan for them..

Next is to invest in technology for superior supply chain management and visibility at all transport stages. With robust and quality technological solutions, planning is a lot easier. Businesses can manage their supply chains with greater insight into each stage of their goods’ journey. Business leaders’ data-driven decision-making cant accurately reflect the current status of your inventory. Forecasting and planning also help make product acquisition more flexible.

You will also want to spread deliveries through different shipping modes. Working with a network of warehouses means you can have items fulfilled through land, sea, and air depending on distance and lead times. Cargo owners should use such solutions to bypass congested ports and corridors and reduce transit times while striking the optimal balance between costs.

Through every challenge, there are also important lessons to learn. Don’t hesitate to innovate in the face of unpredictable roadblocks. By staying informed you have the advantage of reacting quickly to sudden shifts in the market, whether it’s positive or negative.

Overcome the challenges businesses face due to cargo ship delays by simplifying your logistics with ZhenHub. Get access to trackable shipping services across a wide network of global warehousing partners. Cut down on storage costs while keeping customers happy with a full inventory and faster delivery times. Sign up now and get started with our comprehensive logistics software solutions.

If they don’t get a great experience, customers will go somewhere else if it’s not enjoyable or easy to use. However, there are a few things you can do to improve the shopping experience for your customers.

 In this blog, learn how you can improve your customer experience (CX). Discover the strategies that will help you create a great shopping experience for your customers.

Why Having a Good eCommerce Customer Experience Matters 

The customer experience is a lot more than just the outcome. It’s also about how the customers get there and what happens along their journey with you. With so many companies vying for attention these days, it becomes essential that the brand stands out from others. Instead of guessing tailored experiences or copying them from other businesses, you can really invest time into understanding who your customers are.  Remember that what works for another company may not necessarily work for you, no matter how similar.

Technology is making consumers increasingly insightful, intelligent, and influenced by their own grasp of the information. This shift has changed the way people consume products as well as services.

Competition is becoming fierce, with more companies keen on building a positive customer experience. It is increasingly becoming a game-changer for their bottom line. A business that focuses on customer needs and preferences can potentially make 60% more profit than those that don’t.

The eCommerce customer experience is a holistic view of how customers interact with your brand. It includes every step they take from considering you to using the products and even what happens when something goes wrong. 

If a brand’s value is enhanced, the company’s profits will increase as well. In addition, having an informative tone of voice makes it easy to gain the trust of key stakeholders. It makes buyers  more willing to work with you but likely to recommend other people on their lists too.

Seventy-four percent (74%) of consumers (Forbes / Arm Treasure Data) are likely to buy based on experiences alone. (Forbes / Arm Treasure Data) The data means that your business needs to provide consistent support to buyers. Repeat buyers are essential to business scalability; 90% of CEOs believe customers have the most significant impact on their business. Here’s another thing to consider:   trying to seek new buyers is expensive. 

With the boom of online shopping and eCommerce, customers actively seek responsive, helpful, efficient, and trustworthy brands. Fifty-eight percent (58%) of shoppers say they are unlikely to continue doing business with a brand that delivers a poor customer experience.

The importance of investing time, energy, and resources into improving your customer experience creates a ripple effect that will help any e-commerce business grow.

Improving Your eCommerce Customer Experience

It’s never too late to make the customer experience pleasant. Understanding what customers want is more manageable with the rise of technology and digital tools. There are various ways of improving CX to increase customer loyalty and your profits. These include upgrading your product fulfillment through 3PL services to craft a personalized shopping experience.

1. Personalized Suggestions
   Personalizing the shopping experience is more than just mentioning a customer’s name on their invoice. Making recommendations based on data such as their browsing history, location, and shopping behavior can get customers more engaged with your brand. The idea is to showcase products and services that make them seem tailor-made for every potential buyer. 
   
   Using surveys or data from tracking software gives valuable insights into your customers’ interests. Strategic use of discounts, special offers, and even reminder pop-ups on your website bring more value to a shopper’s time looking at your online store. Utilizing artificial intelligence (AI) to analyze customer data and recommend individual products will help create better tailor-made experiences.

2. Responsive Customer Support
   Since customers are shopping online, businesses need to provide support. And it’s always better to take a proactive stance. Start with a solid knowledge base and comprehensive FAQs as self-help resources that customers can read and access. There are intelligent chatbots that can handle simple inquiries and requests. Using these digital tools frees up your support team to upsell, promote new products and services, or deal with escalated situations.
   
   When problems arise, you should be able to step in and immediately address any issues that a customer might have. Why? Because taking too long to reply can lead to frustration.  Close to 30% of consumers say their brand loyalty has wavered during the pandemic due to long service wait times.
   
   While chatbots are a great way of dealing with numerous customer chats that come in day in and day out, they can often lack the essential human touch. Establishing an emotional connection and empathy gives you the edge for superior customer support. Consider multiple support channels such as a 24/7 hotline, social media, and native chat on your website.

3. Faster Fulfillment and Same-Day Deliveries
   Sixty-three percent (63%) of online customers say delivery speed is essential for shopping online.
   
   It makes sense to upgrade your supply chain and ensure that your products are always in stock and shipped out fast. 3PL services can streamline your fulfillment process, using digital warehousing to integrate directly to shopping platforms and ensure that inventory levels are constantly updated. 
   
   Online shopping customers look for free shipping, with 75% expecting to see an offer for it. Your business can offer this when you have access to a 3PL’s vast fulfillment and distribution centers network. The best part of outsourcing is that you can focus on other aspects of improving the customer experience for your business at cost-efficient rates. Products also have extra security when in transit, reducing the risk of damage or even getting lost.
   
   Don’t underestimate how much logistics can influence a positive CX. A compelling supply chain offers business transparency that more discerning customers want.

4. Consistency across Multiple Channels
   Multi-channel selling is a critical part of eCommerce scalability. Even though customers interact with your company on different channels, they will also expect consistency and the same level of service no matter where they go. 
   
   eCommerce sellers have to bring their products wherever they can find their audience — whether on the desktop or from apps such as Facebook Shopping.
   
   Merchants who provide buyers opportunities across multiple websites (like social networks), marketplaces & physical retail stores offer the best customer experience. Going multi-channel also augments your customer support, allowing you to communicate and engage on different platforms. These channels make it easy for your audience to reach out to you.

5. Build a Community
   Some of the best ambassadors that your brand can have are your very own loyal customers. Eighty-one percent (81%) of consumers trust the advice of friends and family over businesses. Growing a community of your biggest fans can give you great insight into how best to approach them and honest feedback. People who have had a positive experience with your company are more likely to recommend your products to their peers.
   
   Utilizing social media to gather your customers in a commonplace is an excellent way to get user-generated content that you can use for your marketing. Allowing them to leave reviews and feedback publicly lets more people see what you can offer. Being responsive to concerns also helps build trust.
   
   Customer experience is all about making the customer feel special. It’s a way for companies to get people talking and spread their message, which means they can connect with potential new clients while building loyalty from those who are already fans.

Achieving Scalability with Great eCommerce Customer Experience

Growing your business means being able to predict trends and adjusting based on what your customers want. Tracking critical metrics such as how many repeat business you gain from clients or surveys that detail overall customer satisfaction is an excellent indicator of good CX.

Shopify reports that 47% of brands plan to use customer feedback to improve products or customer experience within the following year. The relationship customers have with brands can make or break a business. Invest in technology and staff to create a pleasant and memorable experience for your target audience. Experience-Driven businesses see over 1.5x higher YoY growth than other companies in customer retention, repeat purchase rates, and customer lifetime value. (Forrester and Adobe)

The opportunities for your online business are there. However, with so many different strategies and trends to follow, it’s easy to forget whom you’re trying to reach. To stay ahead of the game, you need every advantage to set your company apart from its competitors. Providing stellar customer experiences through e-Commerce platforms and other avenues such as social media pages or phone calls can help your brand leave a lasting impression. 

ZhenHub offers comprehensive logistics solutions to optimize your eCommerce customer experience strategy, from high-tech warehousing to hassle-free shipping and fulfillment. Sign up for free, and explore our different services.

One of the more tricky aspects of eCommerce is dealing with lost and missing packages. It can get costly as well. A Statista.com report said that there will be 266 billion parcels shipped by 2026. And how many parcels get lost or go missing? Last year, more than 210 million packages were stolen in the US alone.

There is only so much a retailer can do to retrieve their parcels. 

The biggest question about lost parcels surrounds liability—who is legally responsible for the missing packages? Is it the seller, the courier, or the buyer? This article explores this question. 

Who is Liable for Missing or Lost Packages? 

Identifying the party responsible for missing and lost parcels can be time-consuming or challenging at the very least. The short answer is that it depends. Different jurisdictions have varying guidelines when it comes to online selling and purchases.

In the UK, for instance, local consumers are protected by the Consumer Rights Act. A seller and a buyer enter into a legal and binding relationship that ends with the parcel delivered to the consumer in working and good order through the law. 

“When you agree to buy goods you enter into a legal contract with the retailer. This means under the Consumer Rights Act, they’re responsible for the safe delivery of your order,” explains Gary Rycroft, a solicitor, and a consumer law expert. 

According to the Consumer Rights Act, the retailer is responsible for any instances of lost packages: 

“With social distancing rules, it’s increasingly hard to confirm if a parcel has been delivered when the business says it has. However, it’s the retailer’s responsibility to ensure those goods are in your hands, not just left on your doorstep where anything could happen to them,” explains Martyn James from Resolver.

Beyond the missing parcels, the law also protects consumers from damaged products and late deliveries:

“If you’re not given a specific delivery date, but a window of say ‘three to five working days’, the seller must get your delivery to you within 30 days of the order being placed. This is under the Consumer Contracts Regulations 2013, (formerly Distance Selling Regulations),” says James. 

Unfortunately, not all regions have online selling regulations in place. In the Philippines, it wasn’t until 2020 that congress passed the Internet Transactions Act. This law aims to create parameters on the obligations and liabilities for e-commerce platforms, online merchants, and couriers: 

“The ongoing practice is that consumers who buy from online platforms like Lazada, Shopee, and Zalora, are limited to the courier services selected and offered by these e-commerce platforms. In order for the consumers to be able to purchase the items they want, they have no other option but to use the courier services utilized by these online platforms. And sometimes they literally have no choice because only one courier service is offered by the platform,” explains Gatchalian. 

How to Prevent Lost Packages

As they say, an ounce of prevention is worth a pound of cure. This statement rings true even when dealing with lost packages. As mentioned earlier, eCommerce retailers would have to deal with missing parcels at one point or the other. It’s crucial to find ways to minimize these circumstances:

• Use Reliable Shipping Labels
  One of the simplest ways to prevent lost parcels is through shipping labels. Shipping labels are crucial in getting a package from point A to B without issues. The label should be legible and difficult to tamper with. Retailers should avoid using ambiguous abbreviations and if a box is to be reused, make sure that old tags are adequately removed. 

• Purchase Shipping Insurance
  Shipping insurance protects sellers from incurring any losses if a parcel goes missing in transit. This expense is significant for high-value and rare items. At the very least, insurance should cover the cost of the item and the shipping fee. 

• Include “In case found” Information
  Not all lost packages are stolen. It is best to provide “in case found ” information on the packaging itself in such cases. This way, the person who retrieves the package would know what to do with the order. At the very least, sellers should include their name, contact details, and company address. 

Managing Lost Packages

Missing and lost packages are inevitable. More often than not, the kind of operation a retailer runs is determined by their response to these unfortunate situations. 

1. There is no one-size-fits-all to dealing with missing parcels. However, it is a good idea to determine the actual status of an item. It is important to remember that just because a customer claims they haven’t received an item doesn’t mean it is already lost or missing. It is best to wait around a week from the expected delivery before proceeding to the next steps. 
   
2. After ensuring that the package didn’t get lost in transit, it is time to file for an insurance claim. Again, the insurance policy should cover the cost of the item and the shipping rate. Once the claim gets approved, refunding the customer or replacing the package is easier. 
   
3. Throughout the whole ordeal, do not forget to communicate with the customer. The last thing a retailer wants is to lose a customer because of one instance of a missing parcel. 

As eCommerce use continues to rise, the number of lost, stolen, or missing parcels will also increase. eCommerce retailers need to accept that dealing with lost packages is an inevitable part of doing business. 

Thankfully, you don’t have to go through developing a lost and missing process alone. We at ZhenHub are eager to help. We can ensure that your customers receive their parcels every time by partnering with us. Learn more about our services today. Contact us or request a free quote and see how we can handle your order fulfillment and shipping needs seamlessly. 

There are plenty of ways to go about inventory management. Over the last few years, automated inventory management systems have become more popular for eCommerce operations. It has become a critical addition to businesses eager to scale and grow. 

This article explores inventory management systems, mainly automated options. Learn about the most common inventory management problems, the benefits of automation, and utilizing the right software for the operation. 

What is Automated Inventory Management?

As the name suggests, Automated Inventory Management is the process of optimizing and simplifying inventory-centric tasks for a more efficient workflow. By configuring supply chain preferences onto a software system, retailers can automate inventory management processes.

But implementing one isn’t that easy. For one, automation isn’t one-size-fits-all. It needs to be specific to retailer needs. Overall, automated systems are designed to free up time spent on routine, repetitive inventory procedures. This way, retailers are able to focus on their core competencies. 

Common Inventory Management Problems

Maintaining an online retailer presence is strategic but challenging. It provides retailers with a broader market reach which can equate to more sales. The challenge lies in keeping inventory going in and out of various streams. Below are common inventory management problems that an automated inventory management system is looking to solve:

• Overstocking

One of the most significant responsibilities of retailers lies in achieving the balance between overstocking and understocking. In inventory management, overstocking is a common problem because most online stores worry about running out of inventory to meet the demands. On the other hand, having too much stock on hand can be costly.  It can tie up capital on slow-moving merchandise, increasing the expense on storage and insurance rates.

• Misuse of Available Space

Managing an online sales operation requires knowing the audience and stocking products customers want. Failing to realize the in-demand items and stocking the warehouse with the wrong inventory can profoundly impact a retailer’s profit margins. Not only is there wasted warehouse space, but storage misuse can lead to missing out on stocking high-demand items. An efficient inventory management system controls the accumulation of stagnant inventory and minimizes or prevents profit loss.

• Subpar Customer Experience 

Aside from shipping times, an inefficient inventory management system can affect customer experience. Without a solid management flow, retailers will find connecting with their customers and solving issues during the purchase process challenging. Most consumers give online retailers only one shot to impress them with their service and products. After all, there are plenty of other merchants online. 

Learn more about inventory management here. 

Benefits of Using an Automated Inventory Management System

An automated inventory management system provides distinct advantages to retailers. It’s doubly true for companies that automate parts of their supply chain. Opting for automation can be beneficial to various types of operations across different sectors:

• Saves Time

Inventory management can be a time-intensive and laborious affair. Especially at the onset, developing a reliable system requires time and resources. It can take time away from crucial work to help scale and grow the company. 

The biggest draw of automated inventory management systems is their time-saving benefits. It is particularly beneficial for retailers that have a wide product selection. Automated systems can reduce the resources to run various parts of the supply chain, including product ordering, stock management, and inventory forecast reporting. 

• Improves Accuracy

Human error is the single biggest problem in using manual inventory management systems. Truth be told, when figures and numbers pass through several human hands, errors will likely happen. A small one like an extra zero in a product order, can spell disaster for an operation. 

Through automation, retailers can minimize the instances of these costly data mistakes. By removing the human factor, automation can minimize these costly data mistakes. 

• Provides Real-Time Data

Automated Inventory Management systems differ in the features and enhancements that they offer. Some programs provide real-time tracking features that are beneficial for various types of operations. 

Through the provision of real-time data, retailers can monitor their inventory without delay. As such, they can respond to the shifts in supply and demand and prevent inventory stock out, especially during peak periods. With this much data, online sellers are less likely to disappoint consumers. Automated inventory management improves customer satisfaction and builds customer loyalty at the end of the day. 

• Build Efficiency

Supply chains are finicky. Various factors can contribute to delays and shortages. Especially in this day and age when COVID-19 is still a logistics threat, building an efficient inventory management system is vital. 

Automation software builds inventory management efficiency. Instead of relying on staff to input data, process orders, and log information in a system, automation gets these processes done faster and with fewer errors (possibly even error-free).

• Scale Up with Ease

As mentioned earlier, poorly-implemented inventory management tasks can prevent an operation from growing. The process can be complex and can get riddled with mistakes. Through automation, retailers can focus on tasks that scale their operations. Moreover, the right program should be able to grow with the company. 

Inventory management can make or break the growth of a business. It is a crucial part of running a successful online enterprise. That said, making a choice isn’t always easy. Thankfully, you don’t have to navigate through the decision alone. We at ZhenHub are eager to help!

ZhenHub is an industry leader that offers customized tech-based logistics solutions that fit every need. From inventory management software to last-mile delivery systems, we can help you transform your operation. Reach out to us today or request a free quote to learn more.