Why Sell a Slice When You Can Sell The Whole Cake?

Ruth Reiner

Ruth Reiner

Co-founder & CMO Ladingo

B2C e-commerce is no longer a luxury. Today’s constant growth in online transactions, with new online-marketplaces reaching shoppers on an international scale, has aptly positioned e-commerce as a veritable necessity. Its global spread has made international sales, of any item, virtually non-negotiable. Yet, the world of B2C international shipping with respect to the shipment of large items, continues to face great hurdles. The sector, therefore, currently tends to be associated with airfreight.

But why is it so expensive to ship large items bought online? How much does it cost to ship internationally, anyway?

Consider the example of a shopper based in Austin Texas seeking to purchase a bicycle online. One can potentially find a great bike online in the the Netherlands for $7,500, but this price can jump to as high as $10,400 or even more during the checkout process, once international shipping costs are factored in. The reason for such high price is that container-sharing is currently not streamlined to B2C e-commerce, or at least not in real-time, which would enable price optimization per item. Shoppers are thus forced to pay for as much as the price of a full container to ship their singular large parcel. As a result a single product as small as a bike, could end up incurring the fixed costs of shipping a container!

Alternatively, one item may be transferred behind the scenes from one freight forwarder to another whose container has room for such an item, cutting costs on account of the customers.

As the global B2C retail e-commerce sales are predicted to reach $4.5 trillion by 2020, some claim that container sharing will soon become a fundamental part of international B2C e-commerce fulfillment.

Container sharing funneled from multiple e-commerce websites would probably be the best way to resolve this challenge.  By divvying up the overall cost of the container among the customers who ordered large items from marketplaces or online shops, containers could be filled, enabling forwarders and shoppers to enjoy a WIN-WIN. Yet, that being said, there  needs to  be a way to funnel dozens or even hundreds  of online shoppers looking to make large international purchases to a single freight forwarder willing to ship all of their items in a shared container – but let’s put that aside for now.

Yet, even when putting e-commerce aside, container-sharing, known in the industry as LCL (Less than a Container Load),  is still not commonly practiced. The current market-share of consolidated containers is merely 3% of all containers being shipped globally. One of the main reasons for such low volumes of shared containers stems from the fact that freight forwarders simply do not want to deal with the hassle associated with organizing shared containers in terms of documentation, customer facing, consolidation and optimization, customs clearance, etc. They want the simplest, cheapest way to ship large parcels overseas, but have yet to come across such a method.

So, if the numbers are so low, why should we believe in this path as the future of the international parcel delivery of large products?

As  Amazon, for example, has shown, buying space from common-use ocean carriers is the most economical way to ship large packages via ocean. This can be extended to the use of customers “buying” space on shared containers.  It is also important to note that 99% of all LCL containers are actually allocated for B2B consolidating an average of half a dozen importers or exporters per container. Yet,in the case of shoppers sharing containers,  freight forwarders could still be  reluctant to do so, as filling a standard forty foot container with 150 bicycles means dealing with 150 importers, involving 150 sets of paperwork. What a hassle! And that’s without taking scalability, or the possibility of different types of items fitting into a single container into account.

So, what is the cheapest way to ship large packages internationally?

When it comes to creating an environment that allows for container sharing for B2C e-commerce via ocean freight, efficiency is key and technology is the unspoken truth. There is a great need for smart technology capable of connecting sellers, shoppers and forwarders to forge THE E-COMMERCE OF BIG THINGS and scale internationally. This is the Ladingo solution, the cheapest way to ship internationally. This international parcel delivery solution does not exist anywhere else in the market thus disrupting the world of international shipping with container sharing.

We are more than just your run-of-the-mill container consolidation technology company. We are an enabler of the e-commerce of big things. Consolidated containers and the streamlining of their shipping from any online retail store to the entrance of any customer’s home are our modus operandi.

By removing barriers related to shipping and import of large items, such as maximizing, optimizing, and automating the fulfillment of the global B2C e-commerce of large items, Ladingo’s international delivery service helps create a flatter world than ever. Its disruptive , data-driven solution, ensures all pricing is presented upfront and all “importer” purchase requirements are consolidated within a unified and automated platform. This allows sellers, shoppers and forwarders to cooperate seamlessly. Shoppers are automatically funneled to prospect containers and all documentation is handled digitally by Ladingo. Freight forwarders enjoy the benefits of working as if they were dealing with a single customer, while the individual shoppers continue to enjoy the liberty of personal importation. Namely, each party optimizes its own position.

As the logistics and retail industry digitalize, the time has come for retail e-commerce businesses to start selling large items internationally. With Ladingo’s ecommerce shipping solution, the e-commerce of big things is quickly becoming a realistic and economical reality.

LADINGO – Sell Big and Scale.

For more information on our cheapest shipping rates solution, visit Ladingo’s website or check out the company’s LinkedIn page.

Thank you for joining me!

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