What is an overseas warehouse? As the name suggests, an overseas warehouse is an “overseas warehouse”. It is an overseas storage point set up by cross-border e-commerce sellers near the buyer’s area to increase the buyer’s shopping orders, used to store their own products. There are three types of overseas warehouses, namely Amazon FBA overseas warehouses, sellers’ overseas self-built warehouses and third-party overseas storage service providers. Overseas warehouses still have certain advantages for cross-border e-commerce sellers. Let’s take a look at the advantages of overseas warehouses and what products are suitable for overseas warehouses!
What are the advantages of overseas warehouses?
Advantage 1: Good shopping experience for buyers. Overseas warehouses ship directly to buyers from the local area, and have the same space and time advantages as local merchants. Therefore, it is a relatively efficient choice for sellers to choose overseas warehouses, which can not only greatly improve the buyer’s shopping experience, but also conform to the development of the cross-border e-commerce market.
Advantage 2: Reduced logistics costs. The logistics costs of cross-border sellers will be greatly reduced. Overseas warehousing is to put the goods in the overseas warehouse in advance, and then ship them from the local overseas warehouse. The logistics costs will be the same as domestic express delivery.
Advantage 3: Increased product exposure. From the perspective of platform operators, when buyers make purchases, if they select “delivery in the destination country” on the navigation bar, and then choose sellers who use overseas warehouses to ship goods, the number of competitors may instantly increase from hundreds of thousands to tens of thousands or even thousands, and the effect of diversion must not be underestimated.
Advantage 4: Improved praise. For sellers who use overseas warehouses, their buyers can not only receive express parcels faster and query logistics and delivery information throughout the process, but also reduce the rate of damaged and lost packages due to the short distance and reduced transit process, thereby reducing the rate of returns and bad reviews. The overall performance of the account will be significantly improved, and the quality of exposure after the improvement will definitely be taken to a higher level, and the good shopping experience will be greatly improved, which will promote the buyer’s second purchase.
Advantage 5: It helps to expand the market. Because overseas warehouses are more recognized by foreign buyers, on the other hand, if sellers pay attention to word-of-mouth marketing, their products can not only be recognized by buyers locally, but also help sellers accumulate more resources to expand the market and expand the product sales field and sales scope.
So, since overseas warehouses have so many advantages, what products are more suitable for overseas warehouses?
1. Products with large size and weight. Using overseas warehouses for such products will break through the product specification restrictions and reduce logistics costs. For example, large home furnishings and outdoor tents.
2. Products with high unit prices and gross profits: Products with many SKU types, seasonal products, and products with unknown sales effects are not suitable for overseas warehouses. This is because high-quality overseas warehouse service providers can reduce the loss rate and damage rate of products, and reduce the risk for sellers selling high-value goods.
3. Because of occasional events or products that are urgently needed during festivals, users have high requirements for the logistics timeliness of such products, and consumers are relatively willing to pay higher freight to enjoy faster and more convenient logistics services. For example, repair tools, accessories, and party supplies.
4. Best-selling products: Products are highly popular, and sellers can supply products more quickly through overseas warehouses to increase sales share.
Cross-border e-commerce sellers can bring many advantages by choosing an overseas warehouse suitable for their products. However, sellers must also make certain judgments when choosing overseas warehousing and logistics service providers, and should choose overseas warehouses that are suitable for the development of their products. Haituotong is a modern logistics company that integrates cross-border e-commerce logistics and overseas warehousing services. It has six overseas warehouses around the world and can provide stable overseas warehousing services for your products.