Overseas warehouse refers to the storage facilities established by enterprises overseas. Overseas warehouse plays an important role in cross-border trade and cross-border e-commerce sales. It allows domestic enterprises to send goods to the target market country through international transportation and establish warehouses locally to store goods. This model can greatly reduce the customs clearance steps, enabling domestic enterprises to respond quickly to local sales orders, thereby increasing the delivery speed of goods. Next, let’s take a look at the model and advantages and disadvantages of overseas warehouses.
The model of overseas warehouses has many advantages, which will be highlighted below.
First, overseas warehouses can greatly increase the delivery speed of goods. Since overseas warehouses are located in the buyer’s country, sellers can prepare the goods for sale in overseas warehouses in advance and ship them directly from the buyer’s country. Compared with overseas direct mail, the logistics speed of overseas warehouses is unparalleled, which greatly shortens the delivery time of goods. This not only improves the buyer’s logistics experience, but also reduces disputes and refunds caused by logistics.
Secondly, overseas warehouses can enhance the buyer’s shopping experience. Overseas warehouses can effectively avoid the troubles of overseas direct mail returns and exchanges, facilitate return and exchange services, and improve the quality of after-sales service. This not only improves the buyer’s shopping experience, but also helps to cultivate repeat customers and increase the repurchase rate of stores and products.
Third, the overseas warehouse model can save logistics costs. In the off-season of logistics, freight is often lower, and sellers can prepare goods in overseas warehouses in advance. In this way, from a logistics perspective, a large amount of logistics costs can be reduced.
In addition, overseas warehouses can also avoid the problem of logistics peak season. In the peak season of logistics, prices of various channels soar, and there is often a problem of insufficient warehouse space, which brings great trouble to cross-border e-commerce sellers. Overseas warehouses can avoid these problems very well. Sellers can prepare goods in the off-season and sell in the peak season, and no longer worry about the problem of insufficient warehouse space, which is of great significance to sales stability.
Finally, the overseas warehouse model helps to increase store sales and is more conducive to market expansion. When shopping online, buyers usually choose merchants with fast logistics speed and fast local delivery. The fast logistics and convenient after-sales return and exchange services of the overseas warehouse model have greatly improved the store’s praise rate, increased the exposure of the store and products, and thus increased the store’s sales. This has an important role in promoting market expansion and large-scale operations.
Since it is the model and advantages and disadvantages of overseas warehouses, after understanding the advantages, let’s take a look at the disadvantages.
First, the storage cost is high. Although the overseas warehouse model reduces logistics costs by staggered delivery, the storage cost is generally charged on a daily basis after the goods arrive at the overseas warehouse. This has brought certain economic pressure to sellers.
Secondly, the inventory pressure of overseas warehouses is relatively large. Once there is an error in market grasp, resulting in unsalable or poor sales of goods, a large amount of goods will be piled up in the warehouse and cannot be realized in time, and the storage cost will also increase. This has brought sellers a dilemma.
In addition, the overseas warehouse model also has the problem of inconvenient capital turnover. Under the overseas warehouse model, a large amount of funds are required for investment in batch stocking, logistics, warehousing, etc. However, these funds often require a long repatriation cycle, resulting in poor capital flow for sellers and a tendency to break their capital chain.
In addition, the overseas warehouse model is also subject to some other factors. For example, the site selection, warehouse management, and operating costs of overseas warehouses all require sellers to fully consider and implement, otherwise it may affect the effectiveness and operating results of the entire overseas warehouse model.
The above is roughly the content related to the overseas warehouse model and its advantages and disadvantages. When choosing an overseas warehouse model, sellers need to consider the pros and cons comprehensively and make reasonable decisions based on their actual situation. At the same time, flexible business strategies and good warehousing management can help sellers overcome the challenges faced by the overseas warehouse model and achieve better operating results and market expansion.