Finding the perfect suppliers in China is a thrill. You find a factory in Yiwu for accessories, another in Shenzhen for electronics, and a third in Ningbo for packaging.
But the excitement fades when you see the shipping quotes.
If you ship three separate orders, you pay three base rates, three sets of customs fees, and three local handling charges. Suddenly, your profit margin evaporates before the goods even leave China.
As a small or medium-sized business (SMB), you might ask: “Is there a way to keep my diverse suppliers but lose the high shipping fees?”
The answer is Yes. The secret lies in a logistics strategy called Order Consolidation. At HSY SCM, we use our own warehouse to help you master this strategy. Here is how to reduce shipping costs from multiple China suppliers effectively.
The “Hidden Costs” of Shipping Separately
To understand the savings, you first need to understand why shipping separately is so expensive. Logistics companies charge “fixed costs” per shipment, regardless of size.
If you have 3 suppliers and ship separately, you are paying for:
- 3x Document Fees: (Bill of Lading, Export Declarations)
- 3x Pick-up Fees: (Trucking from factory to port)
- 3x Customs Clearance Fees: (Both in China and your home country)
- 3x Minimum Freight Charges: (Many carriers have a minimum billable weight. If you don’t reach it, you pay for air.)
This is the “Logistics Trap” that many new importers fall into.
The Solution: HSY SCM Warehouse Consolidation
The most effective way to reduce shipping costs is to treat your three small shipments as one large shipment.
Because HSY SCM owns a dedicated warehouse in China, we act as your central hub.
Step 1: Collect
Instead of asking Factory A to ship to New York, and Factory B to ship to New York, you instruct them both to ship to the HSY SCM Warehouse in China. Domestic shipping within China is incredibly cheap and fast.
Step 2: Store & Inspect
We receive the goods. Since we are also your quality control partner, we can inspect the goods from Factory A while we wait for Factory B’s goods to arrive. We store them securely in our facility.
Step 3: Combine (The Magic Step)
Once all your orders have arrived, we consolidate them. We verify the total weight and volume. We can even repack goods to eliminate wasted space (shipping “air” is expensive!).
Step 4: Ship Once
We generate one invoice and one Bill of Lading for the entire batch. You pay for international freight one time.
The Math: How Much Do You Actually Save?
Let’s look at a hypothetical example of shipping via Sea Freight (LCL):
Scenario A: Shipping Separately
- Supplier 1 (1 CBM): $300 Freight + $150 Doc/Fixed Fees = $450
- Supplier 2 (1 CBM): $300 Freight + $150 Doc/Fixed Fees = $450
- Supplier 3 (1 CBM): $300 Freight + $150 Doc/Fixed Fees = $450
- Total Cost: $1,350
Scenario B: Consolidating with HSY SCM
- Combined Shipment (3 CBM):
- Freight for 3 CBM (Volume discount): $800
- Doc/Fixed Fees (Paid once): $150
- Total Cost: $950
Total Savings: $400 (approx. 30%)
Note: This is a simplified example, but it illustrates how eliminating redundant fixed fees puts money back in your pocket.
Beyond Shipping Costs: The Destination Benefit
The savings don’t stop in China. When the goods arrive in your country (e.g., USA, UK, Canada), you also save on destination charges.
Instead of paying a customs broker to clear three separate shipments, they clear one. Instead of arranging three delivery trucks to your warehouse, you arrange one. The savings compound at every step of the journey.
Stop Paying for “Air” and Paperwork
You shouldn’t be penalized for using multiple specialized suppliers.
By leveraging HSY SCM’s warehousing and consolidation services, you can source from as many factories as you like while enjoying the freight rates of a single large buyer.
Stop wasting budget on redundant logistics fees.
