Warehouses are a key node connecting buyers and sellers in modern logistics. Placing this node overseas is not only conducive to the expansion of overseas markets, but also reduces logistics costs. Goods exported from a country are stored in the country’s warehouses by sea, freight, or air transport. Buyers place orders online to purchase the required items. Sellers only need to operate online and promptly notify foreign warehouses to sort and pack the goods, and transport them from the country’s warehouses to other regions or countries, which improves the logistics response time. At the same time, combined with the local logistics characteristics of foreign warehouses, it can ensure that the goods reach the hands of terminal buyers safely, accurately, timely, and at low cost.
1. Operation mode
The operation mode of overseas warehousing and cargo logistics is roughly as follows: Chinese sellers transport goods to overseas storage centers for storage by sea, air, or express delivery, and issue operation instructions through the inventory management system of logistics carriers.
Step 1: The seller transports the goods to the overseas storage center by himself, or entrusts the carrier to send the goods to the carrier’s overseas warehouse. This section of international freight can be transported to the warehouse by sea, air, or express delivery.
Step 2: The seller remotely manages overseas warehousing online. Sellers use the logistics information system of logistics providers to remotely operate the goods stored overseas and keep them updated in real time.
Step 3: Operate goods according to the seller’s instructions. Operate the equipment according to the automated process of the logistics provider’s overseas storage center, and strictly store, sort, pack, and distribute the goods according to the seller’s instructions.
Step 4: Real-time update of system information. After the delivery is completed, the system will be updated in time to display the inventory status so that sellers can grasp it in real time.
2. Cost Analysis
Overseas warehousing costs = first-leg costs + warehousing and handling fees + local delivery costs
First-leg costs: freight costs incurred from China to overseas warehouses.
Warehousing and handling fees: costs incurred when customer goods are stored in overseas warehouses and when local delivery is handled.
Local delivery costs: local express delivery costs incurred when delivering customer goods in the UK, the US, Australia, and Europe.
The cross-border e-commerce platform eBay has adjusted its international logistics solutions, requiring that for all items delivered to the United States, sellers must use solutions and procedures that can provide logistics tracking numbers that match the corresponding U.S. transactions, and can query complete logistics tracking information on the English website. The policy specifies eight logistics solutions, including international. Postal, Hong Kong Post, EMS, FedEx, DHL, TNT, UPS, etc., and stipulates that logistics providers outside of this policy will not be accepted and will be deemed to have violated the policy and will be subject to corresponding penalties. Among them, the use of overseas warehousing is once again encouraged and supported. At present, in addition to the overseas warehouse policy involved in international logistics solutions, eBay has also cooperated with foreign trade e-commerce service provider Wanyitong to vigorously promote Wanyitong’s U.S. overseas warehouses and encourage sellers to expand into the North American market.