How to save Alibaba shipping costs for the first time?
The best way to place an order for the first time from Alibaba is to ask the supplier to arrange to ship and add invoice fees.
The goods were transported by air without any accidents. All you need to do is give your vendor your address.
Suppliers may use FedEx, UPS, or DHL to ship your product. If your goods cost less than $800 and are being shipped to the United States, there is no duty.
Below, according to the number of products you purchase, let me guide you step by step to formulate the most appropriate mode of transportation, to help you save Alibaba shipping costs.
How to Calculate Alibaba Shipping Cost from China to Your Country?
On the topic of saving Alibaba shipping costs, you should first understand the concept of “weight”.
Because no matter which mode of transportation you use, their price is based on “weight”. It’s just that the “weight” here is a little different than what you normally know.
“Weight” here includes actual weight and volume weight.
Actual Weight: the weight of the goods including packing and outer container, i.e. the weight shown on the electronic scale;
Volume Weight: More relevant to the volume of your package. Different packing methods will result in different volume weights. To calculate this, measure the length, width, and height of the package, then multiply them one by one and divide by 5000 or 6000 depending on the specific mode of transportation.
For Sea Shipping, volume weight = LxWxH/6000,
For Air Shipping, volume weight = LxWxH/5000.
When calculating the freight, the larger value of the actual weight and volume weight will be used to calculate the freight. This rule is due to the limited volume of cargo, and delivery providers must measure all shipments when arranging them.
Based on such rules, you can discuss different packaging methods with suppliers, thus saving your Alibaba shipping costs.
3 Main Modes of Transportation from Alibaba?
To solve the transportation problem, Alibaba provides three main modes of transportation, they are planes, ships, and trains.
It is worth noting that the train only goes to a few countries located on the Eurasian continent.
Different modes of transportation will lead to different delivery times and shipping costs.
In terms of shipping time,
The plane < The train < The ship
In terms of transportation costs,
The ship < The train & < The plane
Among them, there are many different ways to transport by plane, including ePacket, Dedicated Express line, and international express.
E-Packet is only suitable for files or small projects which usually weigh 5-10 Ibs. E-Packet is cheaper but takes longer to ship.
From China to the US, ePacket takes about 30-45 days.
Dedicated Express line is a new mode of transportation, which is between ePacket and international express. It takes about $16 to transport 1kg of goods from China to America, and the delivery time is about 8-12 working days.
The price and time limit of International Express has been relatively stable, you can easily check the freight and time limit from the official website of International Express.
For example, DHL, you only need to visit the official website of DHL, input your delivery address, destination, cargo weight, and box size. After that, DHL can quickly calculate the required price.
Of course, this is only the official price of DHL. If you ask some freight forwarders or sourcing agents, they have long-term cooperation with express companies, so they can get a discount price. This price will be much lower than the price on the DHL website, but the time is the same.
Why is the Shipping Cost So Expensive for Alibaba Shipping?
Because of the cross-border procurement, it will be a very long distance for goods being transported from China to other countries.
Let’s say goods shipped from China to the United States, would travel halfway around the world.
Distance is the main reason why shipping costs are high. Whether you buy from Alibaba or Made-in-China, you will find that shipping is expensive.
According to ePacket’s website, shipping costs are around $10-20 / lb for a 10 pounds sample, with a minimum of $80.
Distance aside, there’s another reason Alibaba shipping costs are high.
To ensure that shipping costs are not calculated at a loss, Alibaba allows merchants to charge a premium for shipping costs.
For example, if a product weighs 0.5kg, it will cost about $30 to ship to the US by FedEx. This is the price calculated directly by FedEx officially, and it’s the price that the buyer should pay to FedEx.
But in the front store of Alibaba, you will see the shipping cost is probably $45.
The difference is due to the premium mechanism. To make sure suppliers don’t lose money on shipping, suppliers set up a 150% premium, which means that if you calculate shipping at $30, you’ll see 30×150%= $45.
Through this mechanism, merchants can ensure that they do not lose money on shipping costs.
So when you purchase on Alibaba, especially when the purchased quantity is relatively large, don’t trust Alibaba’s shipping calculation results.
The correct way is to send an inquiry to Alibaba directly, in which you accurately describe the products you want, as well as the corresponding quantity. In this case, the supplier will recalculate a more reasonable freight rate according to your inquiry.
This recalculated freight will be more reasonable than what you see on Alibaba.
Commonly Used 4 Shipping Ways on Alibaba
Different modes of transport vary greatly in transport cost and transport time. The general principle is that the faster the transport, the higher the transport costs.
Therefore, we always need to determine which way is most cost-effective.
If you have a deadline to meet, I recommend air shipping. Although the price is the highest, the shipping time usually only takes about a week
If there is still a long time before your deadline, I suggest you choose sea shipping. Obviously, this will be the cheapest way, but the shipping time may be 30-45 days.
Here are the four most commonly used modes of transportation by Alibaba. You can choose the right way to save your Alibaba shipping costs.
Economic Package
It’s a small package.
Previously it was only shipped through China Post (or Hong Kong Post). However, some third-party lines were added later, such as the Dedicated Express line between China and the united states provided by Yan Wen.
This mode of transport is also traceable. But the transportation time is not fixed, basically 15-35 days.
Economy packages usually weigh less than 20kg. If you are a small batch purchaser and want to save freight, you can use this mode of shipping.
International Air Express
The most common international express companies in China are DHL, UPS, and FedEx. They provide buyers with very good international shipping services.
If you are buying on Alibaba for the first time, choosing these airlines will definitely save you a lot of trouble.
These international express companies can deliver your package to the designated address within 3-7 business days, while you can easily track it online on their website.
But this mode of transportation has two major disadvantages. One is the high cost of transportation, and the other is the limit on the weight of goods.
Air Freight
When transporting relatively large cargo, air freight is a better choice, such as more than 100kg. Compared with the express, choosing air freight can help you save more Alibaba shipping costs.
In China, the average cost of express delivery is about $5-10/kg, and the delivery time is about 3-5 working days, while the average cost of air transportation is $4-8/kg, and the delivery time is about 5-10 working days.
Although the delivery time of air freight may be a little longer compared to express, this time is completely acceptable as long as it is arranged in advance. The most important thing is that air freight can help save Alibaba shipping costs.
It is worth mentioning here that air freight usually has a minimum requirement for weight, which generally starts from 21kg.
We analyzed the detailed comparison of express and air freight when shipping from China to the UK.
As can be seen from the figure, when your weight is smaller, the cost of express delivery may be lower. However, when your weight becomes heavier (especially for goods above 100kg), the cost advantage of air freight begins to appear.
For most buyers, express delivery is more suitable for sending samples. Air Freight is more suitable for medium-weight cargo.
As the most professional sourcing agent in China, we also advise our customers to do so. Of course, if you have an urgent demand for goods, we also suggest that you take the express delivery in small batches, and air transport the rest.
Of course, the above statements are all hypotheses. The specific logistics plan still needs to be based on your actual situation and our sourcing agent will help you customize the optimal transportation plan.
Sea Freight
Sea freight is the most time-consuming of the above 4 modes of transportation. It can deliver the most goods and is also the most cost-effective.
Basically, all goods can be shipped by sea, which includes products prohibited by air freight, such as liquid products, lighters, etc.
Because of these characteristics of shipping, sea freight has become a popular and widely used mode in logistics.
Although the transportation time is very long, as long as you plan ahead and have enough waiting time, sea transportation will be your first choice. Depending on your location, it will be around 30 to 60 days.
There are usually two options for shipping by sea, one is FCL (Full Container Load) and the other is LCL (Less Container Load).
They describe how you want to load the goods. According to the number of your goods, you are free to choose between the two.
If your cargo can fill a container, then you can choose FCL. If your cargo is not enough for a container, you can only choose LCL, which means you share a container with other people.
Therefore, you need to understand the four different sizes of containers commonly used in shipping to determine whether to use FCL or LCL.
| Container | 20ft GP | 40ft GP | 40ft HQ | 45ft HQ |
|---|---|---|---|---|
| Length (inch) | 20 | 40 | 40 | 45 |
| Width (inch) | 8 | 8 | 8 | 8 |
| Height (inch) | 8.5 | 8.5 | 9.5 | 9.5 |
| Volume (cbm) | 33 | 67 | 76 | 86 |
Deciding on the size and loading method of a container is not easy. You must fully consider the total amount of your products, as well as the type of business and your budget.
We recommend that you consult your supplier, freight forwarder, or our professional sourcing agent.
According to our purchasing experience:
If your cargo size is 1cbm~8cbm, please choose LCL;
8cbm~15cbm, choose FCL or LCL according to the actual situation;
If it exceeds 15cbm, please choose FCL without hesitation.
The above are the 4 most commonly used modes of transportation by Alibaba. Novice buyers may choose one of these shipping methods, but experienced buyers often combine several of them.
For example, if you want to ship 1,000 cartons to an Amazon warehouse, many people will choose to ship 200 cartons by air and 800 cartons by sea.
I think you have guessed why he did it.
Of course, you can arrange the ratio of air freight and sea freight according to your situation, such as 400 cartons by air freight, 600 cartons by sea freight, or half air freight and half sea freight.
Highly Recommended 10 Ways to Save Alibaba Shipping Costs
1. Shipment Consolidation
When you want to purchase multiple products, try to consolidate all products into one shipment.
You can use Chinasourcify’s free warehouse service(one month) to collect goods from different Alibaba suppliers in Chinasourcify’s warehouses. When you complete the purchase, Chinasourcify will be responsible for consolidating all your products into one shipment to help you save a large amount of Alibaba shipping costs.
2. Packaging Optimization
Since volume weight is used when calculating “weight”, you can start with package optimization for shipping cost saving.
By keeping the size of your package as small as possible, you can easily guard your money in your pocket.
For example, if you are shipping pillows, vacuum-packed pillows will definitely save shipping costs more than ordinary packed pillows.
3. Use the Online Shipping Calculator
You can find many online freight calculators on the Internet. It can help you calculate a rough freight cost, such as the official website of DHL.
Of course, you can also submit a request to Chinasourcify for a shipping quote.
4. Select Suitable Means of Transportation
This means choosing the right mode of transportation from planes, ships, and trains.
Please note that trains are not optional if your destination is not located in Eurasia.
If you are purchasing from Alibaba for the first time, please consult the professional sourcing agent from Chinasourcify.
Consultations like this are free of charge.
5. Consider Proper Quantity
The number of products is absolutely the most critical factor affecting Alibaba shipping costs.
Based on your sales plan, you can reduce the purchased quantity to reduce the shipping cost this time. Then in the next purchase plan, increase the quantity to make up for the quantity of the first time.
Of course, you can also directly increase the first purchase quantity.
Let’s say, if you can reach the quantity of one container, you can ship by FCL by sea. This will definitely be the most cost-effective way to save Alibaba shipping costs.
6. Sourcing Small Product, Easy to Ship
The inherent attributes of the product itself will also affect the shipping cost of the product.
For example, it would be much cheaper to ship necklaces than plastic storage boxes in the same way. Because the volume of plastic storage boxes is too large.
For plastic storage boxes, the volume weight will be larger than the actual weight. So volume weight will be involved in the calculation of freight.
Another example is shipping mouse pads and Bluetooth headsets. Because the Bluetooth headset has a lithium battery in it, its shipping costs will be higher than a regular product like a mouse pad.
Also, you need to pay attention to cosmetics, lighters, batteries, liquid products, powder products, etc
7. Choose the Nearest Airport and Port
China has a large territory. Choosing the nearest airport or port can also save Alibaba shipping costs.
If your supplier is in Shandong province and your forwarder is in Shenzhen city, this forwarder is not your best choice.
Because you need to ship the goods from Shandong province to Shenzhen city. The domestic shipping cost in China is also included in your total shipping cost.
The most appropriate way is to choose the forwarder in Shandong province, or Shenzhen forwarder has offices in Shandong province. Because they can put your cargo on the plane directly through Qingdao airport in Shandong Province.
8. Compare Different Shipping Quotation
Just as you compare product prices among different suppliers, you can also compare shipping quotes. After comparing prices, find the most suitable mode of transportation.
9. Store Your Goods in China
You can ignore this when you buy only one product.
If you buy a variety of products, a company with warehousing services can save you a lot on shipping costs.
You need to understand that all of your products can’t be produced at the same time. It is common for products to be finished at different points in time.
If you partner with Chinasourcify, you have a free warehouse in China (1 month). During this time, you can purchase more products and store the finished products in Chinasourcify’s warehouse.
In this way, you don’t have to ship products one by one, but you can consolidate all products into one shipment
Through the storage function of the warehouse, Chinasourcify can help you save Alibaba shipping costs.
10. Route Planning And Optimization
Logistics is the process of analyzing the most efficient transportation routes and methods.
There may be multiple routes to get your goods to their final destination. You must find the most economical Alibaba shipping costs to save you money and time.
Who Should Be in Charge of Shipping? Supplier, Yourself, or an Agent?
Alibaba doesn’t limit consigners. You can optionally appoint the consigner to the vendor, yourself, or the agent.
1. Let the supplier take care of shipping
If you place an order with one of Alibaba’s suppliers, you can ask that supplier to complete the delivery for you.
This is the easiest way to finish the delivery. You just tell the supplier where you’re going. They’ll do all the rest.
My suggestion: the supplier is responsible for the delivery in this way, so the supplier may transfer the profit of the product to the freight.
For example, after negotiation, the supplier promises to give you a $100 discount, but he will secretly add the $100 back to your shipping cost.
2. Handle by yourself. It could be you or your company's transportation department
This works for large business owners because they do a lot of business.
The profit difference between doing it yourself and working with someone else is large enough to hire a professional to do the job.
My suggestion: small and medium business owners do not try this easily. When businesses are large enough, you can save money in this way.
3. Cooperate with local shipping Agent
These shipping agents specialize in providing international shipping services from China to your destination.
Since the destination is very clear, which is shipping between your destination and China, they are very knowledgeable about the policies of both countries. It can help you solve all kinds of problems in transportation.
My suggestion: Since they are some local shipping agents, their charging methods will be closer to the local charging level.
For example, a local shipping agent in the United States will definitely charge more than a local shipping agent in China. Because the labor cost is more expensive in the US than in China.
4. Partner with sourcing agents who provide one-stop sourcing services
For small business owners, you can work with a sourcing agent.
Because they offer one-stop shopping, which of course includes shipping. They help different customers deliver goods every day, so they have established a good cooperative relationship with the local freight forwarding company in China and can get a nice discount price.
My suggestion: Chinasourcify is a very professional Chinese sourcing agency, providing one-stop sourcing services, from the beginning of product sourcing to the end of door-to-door shipping worldwide.
You can submit your Sourcing request via RFQ for free.
Using Freight Forwarders for Shipping from Alibaba
If you choose to cooperate with the shipping agent, please learn some trade knowledge in advance to facilitate communication with the shipping agent.
You can start by familiarizing yourself with trade terms. Incoterms is an international trade term used to determine the place and time of transshipment.
This is the official terminology. Actually, it is a little complicated.
In communication with the shipping agents, the most commonly used terms are FOB, EXW, CIF, and DDP. You can start by understanding what these terms mean.
Secondly, when communicating with the shipping agent, you need to give him as much information about your products as possible, which includes
Mode of Shipping: air or sea
Gross Volume (CBM)/ Gross Weight (KGS)
Weight and size per carton
Shipping terms: EXW factory or FOB
Pickup address: factory address or port name
The mailing address
Insurance (Yes/No)
Please note that the price you receive from the shipping agent is estimated and the shipping quotation does not include: tariffs, taxes, and other potential charges.
The actual shipping costs will not be known until the whole process is complete. Your shipping agent will send you a bill of payment when the goods are shipped. There’ll be a lot of detail on the bill.
Checklist of Your Alibaba Shipments to Avoid Problems
Checking your goods as soon as possible after receiving them can also help you save Alibaba shipping costs.
You may be a little confused. Do not worry, let me explain.
If you receive the wrong quantity of goods, or the quality is not good, you can apply for compensation from Alibaba in a timely manner.
In this way, you can get payment from Alibaba, or the supplier can reissue the product to make up for your loss. If the work is delayed by a week, or more, instead of being done as soon as it is received, you will have a hard time getting reimbursed.
So please be sure to check the goods from the following aspects, timely claim.
- Product Quality
- Packing of Goods
- The Instructions
Product Quality
You should check whether the quality of the product is as expected, including color, function, materials, etc.
If you have received samples from suppliers before, you can compare the quality of the bulk goods with the sample quality.
Packing of Goods
Check whether the package meets your requirements, including the color, the copy, and whether the bar code can be recognized, made in China label, etc.
The Instructions
If you need instructions for your product, especially for electronic products, check that they exist and that they are in English (or your native language).
If the product doesn’t have an instruction manual, it will be difficult for your customers to understand how to use the product.
It’s going to be a terrible shopping experience. And you never want that to happen.
Is Shipping Insurance Necessary for Shipping from Alibaba?
Considering the distance of international transportation and the many uncertainties during the journey, we recommend that you purchase cargo insurance for your goods.
It usually costs around $50-100 per order for insurance. But if you don’t have insurance, when the goods are accidentally lost, you lose the value of the entire order. For a customer who chooses FCL, the loss could be 500,000+ dollars or more.
The final cost of insurance depends on such factors as the mode of transport, route, type of cargo, and so on. So please consult your forwarder partner carefully.
Alibaba Shipping Cost Conclusion
The best way to save Alibaba shipping costs is to arrange shipping by yourself, you will be able to control the cost of delivery. But for most novice buyers, it’s easiest for a supplier to help you complete the delivery on Alibaba.
Chinasourcify, as the most professional sourcing agency in China, provides one-stop sourcing services.
Our sourcing agents can help you solve all problems in China, and provide you with professional solutions, including factories sourcing, negotiating with factories, quality inspection, logistics optimization, free storage, etc.
Chinasourcify team has rich sourcing experience in China and can deliver goods by air and sea, Amazon FBA, DDP, and express, etc.
The combination of multiple channels provides you with the fastest and most reliable procedures to save your Alibaba shipping costs.