International logistics: deciphering the calculation and settlement methods of global logistics costs for cross-border e-commerce
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Hello everyone! Today we’re going to unveil the calculation and settlement methods of global logistics costs in cross-border e-commerce.
In the backdrop of globalization, cross-border e-commerce is thriving. However, there exist differences in how logistics costs are calculated and settled across different countries and regions.
Firstly, let’s talk about logistics cost calculation. Logistics costs typically include transportation, insurance, customs duties, etc., and need to be precisely calculated based on factors such as weight, volume, destination, and more.
Secondly, settlement methods. Common settlement methods include FOB, CIF, DDP, etc. FOB means the seller is responsible for delivering the goods to the specified port, while the buyer handles the subsequent transportation. CIF includes maritime insurance costs, with the seller responsible for transportation and insurance. DDP places more responsibility on the seller, ensuring the goods are delivered to the buyer’s designated location.
Additionally, there’s the exchange rate risk. Currency fluctuations in different countries can affect the final settlement amount, which needs to be factored into the calculation.
In summary, calculating and settling global logistics costs for cross-border e-commerce involves considering multiple factors to ensure smooth delivery and mitigate risks.
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