E-commerce logistics

When you sell online, you do not have a personal relationship with your customers. This makes the customer experience of receiving goods in good condition and on time particularly important. The service level you can offer and your ability to deliver on time will largely depend on what your freight forwarder can realistically provide. You should also give customers clear information about shipping costs, delivery times and return arrangements.

Several Norwegian freight forwarders offer a range of transport and logistics solutions for both B2B and B2C sales. Find out what your freight forwarder can offer you as an exporter, based on the solutions and level of customer service you want to provide. Before you proceed, make sure you have carefully assessed what is and is not feasible in each country.

If you sell online, choosing the right transport model is essential to succeeding internationally. If your goods do not arrive on time and in good condition, you as the exporter will bear the consequences. Make sure you have clear written agreements with your freight forwarder setting out the terms. Most larger carriers also offer shipment tracking, which customers appreciate. There are several ways to organise deliveries. Online shoppers want the process to be simple, predictable and as convenient as possible. You should also make the total cost clear to your customers, so that any shipping or return costs do not come as an unwelcome and unexpected extra charge.

A good returns policy is often important to customers. For example, customers often find it more attractive if they can return the product at no extra cost, with the cost included in the price. On average, 30–35% of goods sold online are returned. As a seller, you need to understand what returns involve, including the costs and any customs procedures that may apply.

What type of goods will you be selling, and do you have separate cargo insurance in place? If the goods are damaged in transit, the freight forwarder's liability is limited. The basis for calculating compensation varies depending on the mode of transport used (sea freight, air freight, road transport or rail). Additional cargo insurance will supplement and extend the limited cover provided by the freight forwarder's liability.

Example:

If goods are damaged during overland transport without external cargo insurance, the seller's compensation will be calculated by weight. If the freight forwarder accepts liability for the damaged goods, the owner of the goods will receive compensation of 8.33 SDR (Special Drawing Rights) per kilogram. This is equivalent to NOK 83 per kilogram of cargo.

Cargo insurance is divided into the following categories:

A: All risks
B: Extended transport accident
C: Transport accident

If your company takes out cargo insurance for its goods, compensation is calculated based on the goods' actual value. Compensation for damage or loss is based on the invoice value of commercial goods and the market price at the place of loading for used items.

Most freight forwarders offering B2C sales solutions require your online business to be VAT-registered, or to register for VAT, in at least one EU country. This enables them to handle export and import customs clearance efficiently in terms of time and cost. Receiving goods with customs clearance already completed is also easier and more attractive for your customers. It will often be more cost-effective to send larger consignments so that the goods can be cleared through customs together when crossing the border. Otherwise, you will incur a customs clearance fee for each package every time it crosses a border. Once the goods have cleared customs, they can be split up and distributed from one or more central warehouses to the various end customers in the destination countries.

Tomorrow's e-commerce winners will be the companies that can meet customers' expectations for a seamless purchasing and delivery process.