After working with thousands of e-commerce retailers who promote imported products, we’ve seen a clear pattern: LCL (Less than Container Load) rarely works for low-value, everyday articles. While it sounds like a flexible way to “import small and scale later,” the reality is far more complex.
- Compliance is More Than an IEC Code
Many beginners think all they need is an IEC code to start importing. But that’s just the beginning. Depending on your product category, you will still need multiple certifications, registrations, and approvals. For instance, even a simple Certificate of Origin from the origin can cost $80–90. For a shipment worth only $1,500, this alone takes away a big chunk of your margin.
Trading companies and wholesalers structured importers can spread these compliance costs across multiple containers. But for a retailer bringing in 500 or 1000 units once in three months, compliance alone can drain energy, time, and profitability.
2. Multiple Minimums Add Up
Even before your cargo lands in India, you are dealing with minimum charges at every stage: Origin Agent: Only licensed foreign trade companies in China can export. If your supplier doesn’t have an export license, an agent will have to step in — and they don’t work for free.
3. Freight Forwarders: Even though you may be working with one freight forwarding company, their entire operation is not based on their own capacity — even the biggest forwarders depend on multiple agents at both origin and destination. These include shipping line coordinators, customs brokers, CFS operators, and transporters. Each of these agents has their own minimum charges, which apply regardless of how small your shipment is.
4. CFS & Shipping Line Minimums: Container Freight Stations (CFS) and shipping lines charge minimum handling fees regardless of the size of your cargo. By the time your cargo clears customs, the bill looks nothing like the “cheap freight” quote you first received.
5. The Reality of Coordination Shipping is a business of non-stop coordination. Forwarders work round the clock, chasing shipping lines, port authorities, customs, and multiple agents. Even the biggest companies rely on structured agency setups where everyone has their own costs and responsibilities. For a small shipment, this heavy infrastructure still applies — and you pay for it.
6. Value vs Volume Misalignment
LCL can work when the value of the cargo is high — say ₹5 lakh per CBM or more (e.g., electronics, premium equipment). In those cases, the per-unit margin can absorb the high per-CBM charges. But for low-ticket e-commerce products, which are often daily-use items, the economics collapse.
An international shipment — even something as small as a $1000 LCL consignment — is not a straight line between supplier → buyer. There are multiple stakeholders, and each has their role, responsibility, and minimum charge
