Shopee's cross-border platform sellers must handle cross-border logistics shipping, which includes sea freight, air freight, and overseas warehouses, among others. This article aims to provide an overview of the air freight charges on Shopee's cross-border platform. Hope it is helpful to you.
Regarding shipping, domestic logistics is borne by the seller, as indicated by the platform's shipping and regular price tables. For the last mile, the seller offers free shipping or the buyer can opt for it. However, please note that Shopee does not offer free shipping by default. Shopee's return and exchange policy is that items valued at $20 or more are returned for free, while those below $20 are discarded and destroyed.
Cross-border air freight costs usually consist of three parts: air freight charges, fuel surcharge, and war risk insurance, although some airlines do not charge for war risk insurance.
One, Air freight cost
Specific to the net air freight charges, which do not include fuel surcharges and war risks. The adjustment of air freight rates is determined by airlines based on the industry's peak and off-peak seasons, or by providing price to air sales agents according to the airline's receipt of goods, or by granting agents board and volume agreements based on different airline sales policies, which ensures relatively stable pricing. The increase in fuel surcharges generally aligns with the price of international crude oil, while war risks remain relatively stable.
Fuel Surcharge
Fuel surcharges are additional fees imposed by shipping companies to reflect changes in fuel prices. These fees vary by airport and destination, and typically adjust in line with international crude oil prices.
III. Declaration of Value Fee
Declaration Value Charge is a primary additional charge in air freight. Similar to carriers in sea or rail transport, air freight carriers also require limiting their liability to a certain extent to mitigate business risks. Declaration Value Charge = (Goods Value - Goods Gross Weight × $20 per kilogram) × Declaration Value Charge Rate.
Other Additional Fees
In addition to declaration value fees, air freight additional charges include various minor costs, such as document preparation fees, cash-on-delivery surcharges, pick-up fees, and more. These small charges are typically minimal and only applied when carriers, air freight agents, or consolidators provide services.
Now that you're aware of how Shopee charges for air freight, it's time to consider whether your products are suitable for air shipping, as the costs are relatively high and not ideal for low-profit margin items.
