on_way_to_fame; Could you tell me more please as i only know of DHL or Fedex. The reason i didn't get agents involved at this stage was because i would need to then pay their fees and overall, it will cost me more whilst the orders are so small. I have never heard of big_boys. Would you kindly private message me the details of various companies. Do you currently work with China? Thank you very much.
I just wrote a massive post on this and lost it due to the Internet in China
really annoying. But I will start again.
I have been wanting to write a blog post on this for a while as I have asked many clients ask this question in the last few days. But I will try to write a quick summary here.
When sending courier in China you have quite a few options:
1. Big Boys like DHL, Fedex, UPS
2. Private Agents
3. EMS
When you get quotes from Big Boys directly they are extremely expensive. This is because they are not too interested in serving residential customers directly. Their target audience is business clients and private agents. Basically private agents have accounts with DHL and high volumes therefore they get preferential pricing. Working through private agents offers several benefits to DHL such as:
1. Its less work for them, as they can collect large volumes from a single address rather than going to house to house.
2. Private agents essentially act as local salespeople for DHL without any investment for DHL which reduces their marketing cost substantially.
3. It lowers the customer service costs for DHL substantially as these agents themselves serve their customers and have enough knowledge to answer most queries.
A lot of people have the perception that as these people are middlemen they would be expensive, however, they are actually cheaper rather than going to DHL directly due to economies of scale. To illustrate.
I recently got some quotes for one of my UK Clients for a package and this is what I got:
DHL: 1505 RMB
Cheapest Private Agent using DHL: 405 RMB
You can see the savings can be huge. These private agents also work with other companies like Fedex and many times a single agent would work with multiple companies. Their price depends primarily on two factors:
1. The size of their account with the big boys
2. Their overheads (are they operating from home or have a nice office with lots of sales staff).
The second solution is using EMS, China Posts service. This service can take some time and the tracking information isnt always up to date but its usually cheaper then the big boys. I wont trust my most valuable items with them though.
Finally, the private agents have other ways to cut costs, for e.g. if they specialise in a particular route, say China-UK, they would collect lots of small packages from customers and send it as one bulk package and their local clearing agent would then dispatch these individually. The risk here is that sometimes there can be problems with customs clearing and you could lose your goods.