Disadvantages of cross-border e-commerce logistics and overseas warehouses and their countermeasures
High logistics costs and long delivery cycle
Cross-border e-commerce logistics costs are high, mainly because its industrial chain is longer and has more links. Especially in the customs and commodity inspection process, there are many uncontrollable factors, which increase operational difficulty and market risks. In addition, long logistics and delivery cycles are also the focus of consumer complaints. The logistics cycle of cross-border e-commerce is usually more than five times that of domestic e-commerce.
After-sales service is difficult to keep up
Cross-border e-commerce logistics involves many links, and the return and exchange rate is high. Due to the long logistics cycle and high cost, it is often difficult to meet consumers’ needs for returns and exchanges. Especially in developed countries such as Europe and the United States, the culture of return and exchange is common. When Chinese cross-border e-commerce companies enter these markets, the return and exchange rate remains high.
Disadvantages of overseas warehouses
Inventory pressure and warehousing costs
As long as the product is stored in the overseas warehouse for one day, you need to pay one day’s storage fee. If sales are not ideal, goods will continue to be backlogged in the warehouse, increasing warehousing costs and causing inconvenience in capital turnover.
Management Difficulty
Sellers cannot manage overseas warehouses like their own warehouses and must rely on remote operations, which requires higher requirements for logistics information systems and inventory management systems. In addition, the localized operation of overseas warehouses involves complex local legal issues.
Other challenges
Under the overseas warehouse model, cross-border e-commerce companies are more susceptible to trade protection and resistance from importing countries, and customs clearance procedures for bulk goods have increased. At the same time, sellers face higher requirements in supply chain management, inventory control, dynamic sales management, etc.
Disadvantages of cross-border dedicated line logistics
Limited access areas
Only countries with large logistics volume have dedicated logistics options, and the service market coverage needs to be expanded.
Freight costs and delivery delays
Compared with postal parcels, the freight cost of cross-border dedicated line logistics is slightly higher, and delivery delays in the last mile are prone to occur.
Limited products that can be checked
At present, although the number of companies in my country that can provide cross-border dedicated line logistics services is gradually increasing, the types of products that can be shipped are relatively limited.
Disadvantages of third-party overseas warehouses
High costs
Cooperating with third-party overseas warehouses requires paying certain fees, including warehousing fees, logistics fees, packaging fees, etc. For small-scale sellers, these fees may increase the burden.
Information is not transparent
As an intermediate link, third-party overseas warehouses may not transmit timely or accurate information, resulting in order errors or delivery delays.
Limited control capabilities
Sellers have limited operations and control over third-party overseas warehouses and may not be able to meet certain special needs or quickly adjust strategies.
Geographical restrictions
If the seller plans to expand into more markets, he or she will need to cooperate with different overseas warehouses or establish their own warehouse network, which will increase management costs and risks.
Conclusion
Despite the above disadvantages of cross-border e-commerce logistics and overseas warehouses, sellers can still overcome them through reasonable planning and response strategies, such as choosing reliable logistics partners, understanding customs regulations, optimizing after-sales services and return policies, etc. These challenges and improve logistics efficiency.