How to choose an overseas warehouse that suits you and analyze its advantages
1. Multiple advantages of overseas warehouses
Improve customer experience
Exporting to overseas warehouses can help solve the problems of long cross-border logistics times and transportation risks. For example, it only takes 3 days to ship through the US export overseas warehouse to reach the customer, while it takes 15 to 20 days to ship directly from China. Especially during peak seasons such as Christmas and Thanksgiving, overseas warehouses can effectively solve the problem of cargo “clogging”. Overseas warehouses help increase profit margins on single items. eBay data shows that 45% of respondents said that using overseas export warehouses can help increase product selling prices. The average selling price of goods stored in overseas warehouses is 30% higher than similar goods shipped directly. Overseas warehouses help expand sales categories. The centralized transportation model adopted by overseas warehouses breaks through the restrictions on product weight, volume and value, and helps expand the product sales categories of Chinese sellers.
Reduced logistics costs
The logistics costs for cross-border e-commerce sellers will be greatly reduced. Overseas warehousing means placing the goods in overseas warehouses in advance and then shipping them from the local overseas warehouse. The logistics costs will be the same as domestic express delivery. The international feeder transportation costs and destination country (region) terminal delivery costs of logistics-type public overseas warehouses are lower than other public overseas warehouses.
Increased product exposure
From the perspective of the platform operator, when a buyer makes a purchase, if he filters “Delivery in destination country” on the navigation bar and selects a seller who ships from an overseas warehouse, his competitors will instantly It may change from hundreds of thousands to tens of thousands or even thousands, and the effect of diversion must not be underestimated.
Improved rating
For sellers who use overseas warehouses, their buyers can not only receive express packages faster, but also check logistics and distribution information throughout the process. At the same time, due to the short distance, the transshipment process is reduced, and the express delivery damage and packet loss rate will also be reduced. Decrease, thereby reducing the return and negative review rate.
Conducive to market expansion
Because overseas warehouses are more recognized by foreign buyers, on the other hand, if sellers pay attention to word-of-mouth marketing, their products will not only be recognized by local buyers, but also help sellers accumulate more resources to expand market and expand product sales areas and sales scope.
2. Choose a suitable overseas warehouse
Properly plan inventory
Proper planning of inventory can reduce warehousing costs. Based on sales data and market demand, reasonably predict and arrange inventory to avoid excessive stranded inventory.
Improve packaging efficiency
Effective packaging processes can reduce packaging expenses and waste of packaging materials. Optimize the packaging process, adopt efficient packaging methods and materials, and improve packaging efficiency.
Continuously optimize transportation solutions
Transportation costs are one of the important costs of cross-border e-commerce. Cooperate with logistics companies to find more favorable transportation solutions, such as rationally selecting transportation methods, bulk transportation, and negotiating lower transportation fees.
Pay attention to changes in warehousing costs
Warehouse charges may be adjusted based on changes in market conditions and service provider policies. Sellers should pay close attention to relevant information and promptly adjust their warehousing strategies to cope with possible fee increases.
Comprehensive consideration service
When choosing an overseas warehouse, you should not just look at the price, but should consider all aspects. Do more research, compare, inspect, and ask. Comprehensive consideration of the pros and cons of overseas warehouses, and avoid falling into the trap of bad overseas warehouses because of the pursuit of low prices. , to ensure the overall safety of the goods.
Stable supply chain
The establishment of overseas export warehouses enables sellers to transport goods to the sales market in advance to complete stocking, ensuring a stable supply of goods. Since the goods are shipped from the overseas export warehouse and delivered locally in the destination country, consumers will have a good customer experience, thus increasing the number of views and transactions of the online store.
3. Different types of overseas warehouses and their advantages
Logistics-type public overseas warehouse
This refers to an overseas warehouse that relies on the advantages of fixed routes (sea transportation, railway transportation, air transportation) and fixed time to negotiate prices, and provides customers with various logistics services such as transportation, cargo agency, warehousing, and distribution according to customer needs.
Trading public overseas warehouse
This refers to building an offline sales and online display platform for domestic sellers on the basis of inherent trade activities, relying on local segmented sales channels and network relationships in the destination country (region), and within the original international trade background. , relying on the timeliness of local overseas warehouses to achieve a good B-side procurement experience.
Platform-type public overseas warehouse
This refers to placing an order through a third-party platform, and shipping the goods to an overseas warehouse for decomposition, repackaging, and then delivery to the client’s overseas warehouse. Platform-type public overseas warehouses focus on domestic sellers. Overseas warehouses and overseas buyers are on the same system platform. The advantage is that it facilitates communication among three parties, can be managed in a unified way, and can solve problems in a unified way. It focuses on systemic development and international payment issues, and strives to provide good services. C (customer, consumer) end user experience.
4. Returns, exchanges and slow-moving goods handling in overseas warehouses
Returns and exchanges
Returns and exchanges need to be inspected piece by piece, which is quite labor-intensive. Returned goods need to be rearranged, cleaned, packaged, labeled, inspected and repaired. Some are difficult to assemble and identify, which will reduce processing efficiency.
Return for label exchange
Assist customers to return goods and repackage the goods according to instructions, print corresponding product labels in accordance with relevant barcode standards, affix the labels to the standard area in accordance with the platform’s warehousing requirements, and then ship to the FBA warehouse or designated address.
Bad goods and slow-moving goods
The freight is high and the procedures are cumbersome. There is basically no need to transport bad and slow-moving goods back to the country. If the unsalable goods can still be cleared, they must be “cut to stop losses” in a timely manner.
5. Analysis of overseas warehouse delivery fees
Factors affecting delivery fees
The specific amount of overseas warehouse delivery fees is affected by many factors, including but not limited to the following factors:
- Weight and volume of goods: Heavier or larger goods usually result in higher logistics costs.
- Destination country and region: Logistics costs vary between different countries and regions.
- Logistics service level and speed: Different logistics service levels and speeds will have different prices.
- Logistics provider selection: Different logistics providers may provide different prices and services.
Methods to reduce delivery fees
- Estimated sales volume and market demand: Sellers can evaluate the cost of overseas warehouse delivery fees based on estimated sales volume and market demand.
- Consider long-term cooperation: Establishing a long-term relationship may help to obtain better delivery fees.
- Flexible selection of logistics services: Based on product characteristics and market demand, sellers can choose from different logistics service levels and speeds.
- Continuously optimize the supply chain: Sellers can reduce overseas warehouse delivery costs by optimizing the supply chain and logistics processes.
6. How to choose a reliable overseas warehouse
Services provided
Before finalizing an overseas warehouse, you must first inquire about the services provided by the other party? What types of goods do you mainly undertake? Is it possible to check with the sellers they have worked with before? Is there a very professional team in China? Is it possible to conduct an on-site inspection?
Does the warehouse provide insurance
Because the demand for cross-border e-commerce is getting higher and higher, the development of overseas warehouses is becoming more and more standardized. In order to ensure the interests of sellers, many compliant companies have also begun to provide cargo damage insurance, lost parts insurance, delay insurance, etc. Various types of insurance targeting the pain points of cross-border e-commerce.
Do you have an independent legal and tax system
It is very necessary to have a detailed understanding of the laws and regulations related to overseas warehouses. Only with tax and legal protection can you sell with peace of mind.
How to calculate warehousing and other expenses
When sellers choose overseas warehouses, they must be clear and specific about the charging prices.
Whether a mature management system is provided
A mature ERP system can not only meet basic operational needs, but can also use big data technology to generate data reports such as inventory and sales orders to complete the docking of various businesses more efficiently and smoothly.
7. Summary
Choosing a suitable overseas warehouse is crucial for cross-border e-commerce sellers. By speeding up delivery, reducing operating costs, providing localized services and optimizing supply chain management, sellers can improve customer satisfaction, reduce operational risks and achieve sustainable development. Therefore, sellers should carefully consider key factors such as geographical location, warehousing capacity, logistics network, technical support, cost and reliability, conduct a comprehensive evaluation and select a suitable overseas warehouse partner. Only the right choice can ensure that sellers can make full use of the advantages of overseas warehouses, provide high-quality logistics services, and lay a solid foundation for the success of cross-border e-commerce business.