Business owners always look for new ideas for streamlined shipments. They need efficient and reliable ways to improve their business practices and navigating the complex world of door-to-door shipping can feel overwhelming, especially with its intricate vocabulary.
This blog serves as your essential guide, providing clear explanations of key terms to empower your logistics journey.
What is Door-to-Door shipping
Door-to-door shipping is transporting goods directly from seller's location to the customer's shipping address.
For example, a beauty and fashion seller offer door-to-door shipping to customers. Once the shopper places the order, the company arranges the shipping process of the items.
The carrier will pick up the items from seller’s location and deliver them directly to the customer's address. This ensures a smooth and convenient experience for the customer.
Benefits
- 1. EasyProducts get picked up from place of origin and delivered to door at final delivery location, saving time and effort.
- 2. ConvenientOne doesn’t have to worry about transporting the items to a shipping centre or port.
- 3. TrackingAll stakeholders can keep an eye on package from pickup to delivery, knowing exactly where it is.
How does it work with a freight forwarder
The freight forwarder handles the entire process from start to finish with door-to-door shipping. First, the freight forwarder picks up the packages from the seller's location. Then, they manage all the logistics, including customs clearance.
Once they clear customs duties on the shipment, they transport the items to the recipient's door. They handle all the paperwork and coordination, ensuring everything runs smoothly.
Important terminologies
- Shipper : The individual or entity initiating the shipment, entrusting their goods to a transportation provider.
- Consignee : The intended recipient eagerly awaiting the shipment's arrival at their designated location.
- Freight : The goods themselves, encompassing a diverse range of products from fragile electronics to industrial machinery.
- Incoterms : A standardized set of international trade terms defining the responsibilities and costs associated with each stage of the shipping process. Some common terms include
- EXW (Ex Works) : The seller's minimum obligation, making the goods available at their premises.
- FCA (Free Carrier) : The seller delivers the goods to a nominated carrier at a specified location.
- DAP (Delivered at Place) : The seller assumes responsibility for delivery to the designated place, excluding customs clearance
- DDU (Delivered Duty Unpaid) : The seller delivers the goods and pays for transport, but the buyer handles customs clearance and import duties.
- DDP (Delivered Duty Paid) : The seller takes care of everything, delivering the goods cleared of customs to the final destination.
- Bill of Lading (BOL) : A crucial document issued by the carrier, serving as a receipt and a contract for the transportation of goods. It includes details such as the type and quantity of goods, the shipping destination, and terms of the agreement.
- Packing List : An itemized document detailing the contents of the shipment, including the weight, dimensions, and packaging method. It assists in customs clearance and ensures accurate handling of the freight.
- Customs Broker : A professional agent who facilitates the smooth passage of goods through customs by handling the necessary paperwork, ensuring compliance with regulations, and paying customs duties.
- Carrier : The entity tasked with physically transporting the shipment, be it a land-based trucking company, a maritime shipping line, or an air cargo operator.
- Freight Forwarder : An intermediary who acts as a single point of contact, managing various aspects of the shipment's journey, including carrier selection, documentation, and customs clearance.
- Transit Time: The duration it takes for the shipment to travel from the point of origin to the final destination. Understanding transit times is crucial for planning and meeting delivery deadlines.
- Warehousing : The temporary storage of goods at a facility, often a distribution centre, during the shipping process. Warehousing allows for efficient consolidation, sorting, and distribution of shipments.
- Last Mile Delivery : The final leg of the delivery journey, covering the distance from the local distribution centre to the consignee's doorstep. Last-mile delivery is a critical aspect of the shipping process, impacting overall customer satisfaction.
- Delivery Terms : Specifying the agreed-upon method of delivering the goods (e.g., curb side delivery, inside delivery, liftgate service).
- Proof of Delivery (POD) : A documented confirmation of the goods' receipt by the consignee, typically signed upon delivery.
- Demurrage and Detention : Charges applied for exceeding the agreed-upon time for loading/unloading at the ports (demurrage) or for holding equipment beyond the allocated time (detention). Understanding and managing these charges is essential for cost control.
- Inland Freight : The transportation of goods within a country, usually by truck or train, connecting the ports to the final destination. Efficient inland freight is vital for a seamless door-to-door shipping experience.
Factors to consider in choosing Door-to-Door shipping process
When sending products to buyers outside the country, you must consider how you want them to receive the packages. There are factors to think about, like:
What you're sending?
How fast do they need the items?
How much are you and the shoppers willing to spend?
Where are the packages going?
Let’s dive deep to understand better
Nature of shipment
Considering the nature and origin of the shipment is important because every item has a different way of handling. For example, fragile items like glass might need extra care. Thus, delivering them right to the recipient's doorstep is better to avoid damage.
But if you're sending something less delicate, like clothes, sending them to the port might be okay. So, considering what cargo you're sending helps you choose the best way to ship it so it stays safe and arrives in good condition.
Time sensitivity
Time sensitivity is crucial for businesses, if a shipment needs to reach its destination immediately, you might select door-to-door shipping. It tends to be faster, so it is the better option. This is especially important for businesses with perishable goods or urgent customer orders.
Budget constraints
Considering the budget means considering how much money business must spend on shipping. Door-to-door shipping can be more expensive because it includes delivery to the customer's door.
Destination and accessibility
Destination and accessibility mean where the goods need to go and how easy it is to get there. If the final destination is in a remote area or far from ports, door-to-door shipping might be better because it brings the goods directly to the customer.
Shipping volume and frequency
The volume and frequency of shipping means the number of items you ship and how often you send them. If the business has many shipments going out regularly, door-to-port is a better option. It's usually cheaper for larger volumes.
But if they're sending lesser amounts, door-to-door shipping is more convenient, even if it's a bit expensive. So, considering shipping rates, volume and frequency helps businesses find the most efficient and affordable shipping solution.
Final thoughts
Before everything else, businesses must consider the price when shipping internationally as it affects budget. One should find shipping companies, a cargo, or a carrier or logistics partner that can offer more services at a reasonable cost.
A logistics partner which can guide through shipping helps in maintaining a good working relationship with end user or customer.
Express 3PL is pioneer of Door-to-door logistics services in India with specialization in Contract logistics, Freight forwarding, Customs clearances, Project logistics, Warehousing and Distribution.
Connect with us today at EXPRESS 3PL for any logistics questions.