As the name implies, this type of overseas warehouse is established by a cross-border e-commerce platform, such as Amazon’s FBA overseas warehouse model. FBA is the abbreviation of Fulfilment by Amazon, which means that Amazon completes the logistics and delivery. For Amazon sellers who use FBA to ship goods, the goods are first shipped to Amazon’s warehouse. After the customer places an order, Amazon directly arranges the delivery, which can usually be delivered to the customer 2 to 3 days after the order is placed. When using FBA for delivery, in addition to the platform commission, Amazon also charges order processing fees, packaging fees, weighing fees, and storage fees. This method is more suitable for three types of cross-border e-commerce export companies of consumer goods.
The first type is companies that have just started cross-border e-commerce export trade. These companies have been engaged in cross-border e-commerce business for a short time, and the future business development trend is not easy to control. They have not yet established a stable cross-border e-commerce customer base in the importing country (region). Using a similar Amazon FBA overseas warehouse model can make full use of the brand influence of the cross-border e-commerce platform and develop new customers based on the platform’s inherent customer base, which can greatly save the cost of cross-border e-commerce export market development and quickly establish a customer base.
The second category is small and medium-sized manufacturing enterprises that lack brand effects and cross-border warehousing and logistics talents and management experience. Although such enterprises have accumulated a certain amount of customers in cross-border e-commerce business, due to the lack of influence of their own brands and the high operating risks of independently carrying out cross-border warehousing and logistics business, the biggest benefit of adopting a model similar to Amazon FBA is that they can use the cross-border warehousing and logistics business network to realize their own commodity distribution, effectively reducing the cross-border export trade risks and costs caused by logistics distribution.
The third category is cross-border e-commerce export enterprises of durable goods with mature brands but small sales in the target country (region) market. The commodity consumption cycle of such enterprises is long, the consumption quantity in the short term is controllable, and there is no emergency large-scale transfer of goods. They can use regular and stable transportation methods to supply goods to the importing country market, and use a similar Amazon FBA overseas warehouse model as the form of goods distribution and after-sales service in the target country (region), which can not only reduce warehousing operation costs, but also do not affect customer consumption experience.