Retail & E-Commerce Industry: Retail & E-Commerce

35% Cost Reduction
LCL from China

A DTC brand selling home goods on Amazon FBA and Shopify discovered they were overpaying 4x for ocean freight. Here's how LCL consolidation cut their $380K annual freight budget by over $42K.

The Challenge

A direct-to-consumer brand specializing in home goods was selling on Amazon FBA and Shopify with inventory sourced from Shenzhen, China. They were using air freight for 100% of their shipments because they assumed ocean freight required full 20ft/40ft containers. At $8–12 per kilogram, air freight was consuming 22% of their cost of goods sold.

Their freight spend had grown to $380K annually, threatening margins. They needed a way to ship 8–10 CBM per month on a predictable schedule without tying up capital in full containers or sacrificing the inventory velocity that Amazon's algorithm demanded.

The Solution

Suaid Global structured a bi-weekly LCL consolidation program from Shenzhen CFS (Consolidation Freight Station) to Los Angeles. The strategy involved three shifts:

1) Strategic Use of LCL: Move regular inventory (70% of monthly volume) via ocean LCL at $1.20–1.80 per CBM, with 28–35 day transit time. 2) Selective Air Freight: Reserve air freight only for new product launches and seasonal restocks (30% of volume), reducing air dependency from 100% to 30%. 3) Advance Planning: Implement a 45-day rolling forecast cycle so LCL shipments align with demand patterns.

Services Used

The Results

35%
Total shipping cost reduction
$42K
Annual savings on $380K freight spend
28–35 days
Transit time Shenzhen → LA
98.5%
On-time delivery rate

The brand achieved 35% reduction in total shipping costs within 90 days. Monthly freight expenses dropped from $31,667 to $20,583. Shipping as a percentage of COGS fell from 22% to 14%, immediately improving unit economics. Transit times of 28–35 days were predictable and aligned with their 45-day planning cycle, eliminating rush freight premiums.

Over 12 months, the program delivered $42,000 in savings, zero customs holds, and 98.5% on-time delivery. The brand reinvested savings into marketing and product development, increasing market share without raising prices.

"
Suaid Global showed us that ocean freight isn't just for big importers. Our LCL program saves us over $3,500 a month while keeping Amazon inventory stocked. That's the difference between profitable growth and struggling margins.
S
Sarah Chen
Director of Operations — DTC Home Goods Brand

Shipping from China? You Might Be Overpaying.

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