With these three tricks, I reduced my cross-border logistics costs by 30%! How to calculate the freight, tariffs and insurance?

With these three tricks, I reduced my cross-border logistics costs by 30%! How to calculate the freight, tariffs and insurance?

Any do cross-border e-commerce, in the calculation of logistics costs is always a headache, to give you a trick: do not have to blindly choose, do not have to quote, master the three major cost keys can be accurately calculated. Want to sell products to the U.S., in addition to mastering the platform operation and marketing skills, sea transportation, air transportation, cross-border logistics costs are the key factors affecting profitability. However, international logistics quotes are complicated, and there are often unscrupulous operators who cheat cross-border novices, so be careful when choosing a logistics provider.

Tip 1: Calculate the transportation cost accurately and choose the appropriate mode of transportation according to the volume of shipment and time efficiency. For a small amount of shipments, you can use the LCL method and calculate the transportation cost by the higher of the "actual weight" or "volumetric weight" of the product. Common volume weight conversion formula: 1 CBM = 167 kg. For large volume shipments, you can choose FCL (Full Container Load), which costs US$2,000-3,000 for a 20-foot container and US$3,000-4,000 for a 40-foot container.

The biggest pitfall that prevents you from accurately calculating logistics costs is hidden fees! Many freight forwarders only offer a single "basic ocean freight" price, but hide many additional fees, including AMS (U.S. Advance Manifestation Fee) and ISPS (Security Fee) on the Chinese side, as well as ISF (Cargo Information Filing) and Customs Clearance Fees on the U.S. side. Freight rates vary greatly between ports of entry and exit, with basic ocean freight rates for exports from Shanghai being more than 1.8 times more expensive than those from Shenzhen!

Tip 2: Knowing the HS Code of the product is the key to checking the customs duty accurately. When importing goods into the U.S., you have to pay import duties according to the product category, and the duty rate depends on the product's customs code. You can use AI tools such as ChatGPT to make preliminary inquiries, and then go to the USITC website to confirm the duty rate. The complete tariff consists of standard tariff, 301 tariff and reciprocal tariff, and the formula is: tariff = ex-factory price of the product × quantity of the product × tariff rate.

Tip 3: Reasonable cargo insurance to prevent risks and protect the safety of funds. The formula for premium calculation is: premium = insurance amount × rate, the insurance amount is usually the invoice amount plus 10%, the rate depends on the type of goods and other factors, usually 1/1,000, the minimum premium threshold is USD$15. $10,000, for example, the product factory price, the amount of the policy is $11,000, the premium is $15.

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# Cross-border E-commerce # Logistics Costs # Amazon Logistics # International Logistics # Customs Tax Calculation # Cargo Insurance # Cross-border Overseas Brands # E-commerce Entrepreneurs

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