How to make the “express freight collect”​ to “prepaid”​ to help you save money.

Forwarded from JOJO CHEn‘s linkedin

When you do B2B business with China, you will often encounter situations where you need to send goods from China via international express, sometimes it will be sample pieces, and sometimes it is a bulk shipment with time requirements. According to our experience, in most cases, you will give your own international courier company to open an account, and send the goods directly to your account to pay, the sender does not have to bear any costs.
First, let’s see what it means by “prepay”. Usually, the shipping cost is paid by the sender called Prepay, and the shipping cost is paid by the account number provided by the consignee called Freight Collect.
As a company sourcing goods from China, you most likely have your own official international express account with official discounts and monthly settlement rights. By shipping through your exclusive account, the discounted shipping rate is usually much cheaper than other international couriers that ship as individuals. You may look at the cost of your account before arranging a shipment from China, but rarely will you ask the buyer how much it will cost to pay for shipping on their side.
International express billing rules and published prices are not uniform, in almost every country, UPS, FedEx, DHL, etc. will have a separate set of quotes to reflect. Chinese export logistics has cost advantages in some aspects, and the published price and surcharge itself may have certain advantages.

After the outbreak, global freight rates went up a lot and many of the previously signed fixed discount contracts were changed. While exports from China are growing, freight rates in China are also very bifurcated, as forwarders with large volumes have much better discounts than the average seller. The shipper may quote you their shipping rates, which may have a significant advantage over your account discount, and in the same timeframe, you may consider letting the Chinese shipper pay for the shipping. In many cases, the shipper quotes a logistics price that is lower than your own collect shipping cost, and they then approach you to collect this logistics shipping cost, in the process they earn extra profit from the difference in shipping cost.
Of course, they may not have their account or do not have a good discount, this time you can only accept their account discount or the price given by the logistics company. There is a most effective and direct way to find a reliable freight forwarder with good discounts in China and get a fixed or ADHOC quote, you can let them go to the shipper to ship the goods to complete the follow-up service. For settlement, you can let them do the settlement directly with the shipper, and then you can settle with the shipper, or find a freight forwarder with international collection capability to settle with you directly, which is better.
In addition to the price, the freight forwarder has the advantage of its account being more flexible operation, in the UPS, FedEx, and DHL service systems, they have their operating norms in China, such as service area and service time, in the service area outside of the express company, they can not directly provide services, or will have a relatively high surcharge, in addition to the pick-up time, they also have many requirements. A good freight forwarder also has better local logistics resources in China.
As an OG of international express living in China, I indeed have what you need for express or other logistics services for importing from China and exporting to China, welcome to communicate with Jojo Chen.


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