Logistics and Fulfillment
Cross-border logistics directly affects customer experience and operating costs. Choosing the right fulfillment model is critical.
Three Primary Models
1. Direct Shipping
Shipping directly from Taiwan to overseas consumers.
- Advantages: No inventory pressure; flexible cash flow management
- Disadvantages: Slow delivery (7–30 days), higher per-unit shipping costs, difficult returns
- Best For: Early-stage sellers, small and lightweight products, high-value items
2. Overseas Warehouse
Pre-positioning inventory in an overseas warehouse; orders ship locally once placed.
- Advantages: Fast delivery (1–3 days), superior customer experience
- Disadvantages: Requires accurate sales forecasting; risk of excess or dead stock
- Best For: Sellers with stable sales volume and high inventory turnover
3. FBA (Fulfillment by Amazon)
Amazon's fulfillment service — sellers ship goods to Amazon's warehouse, and Amazon handles picking, packing, shipping, and customer service.
- Advantages: Prime badge boosts conversion rates; Amazon manages returns on your behalf
- Disadvantages: FBA fees are calculated by size and weight; long-term storage fees can be substantial
- Best For: Mid-to-large sellers operating primarily on the Amazon platform
Major Logistics Providers
| Provider | Key Feature | Best Markets |
|---|---|---|
| DHL Express | Fast and fully trackable; suitable for high-value goods | Global |
| FedEx | Reliable; handles both documents and commercial cargo | US, Europe |
| Chunghwa Post International | Cost-effective; ideal for small and lightweight items | Global |
| Shopee Xpress | Integrated with Shopee platform; reliable delivery times in Southeast Asia | Southeast Asia |
| Wan Li Tong / Yi Da Tong | Specialized for Amazon sellers; first-mile logistics expertise | US, Europe |
Tariffs and Customs Clearance
- United States: Imports under USD 800 per shipment are duty-free (De Minimis rule)
- European Union: The €22 VAT exemption was abolished in 2021; all imports are now subject to VAT
- Southeast Asia: Tariff rates vary significantly by country; verify the applicable HS Code for each destination market
Advice
Before entering any new market, look up the applicable HS Code tariff rate for your product category. Unexpected duties can erode margins quickly, especially at scale.