Early overseas warehouse companies are all going through the adjustment phase after expansion. There is a process of optimization to match the high cost with the marketing of front-end sellers and the order scale. Now, with the popularity of Amazon’s global store and FBA, overseas warehouses have started a new round of expansion, and the trend of direct mail shifting to local shipments is irreversible. Overseas warehouses are not a panacea, and some markets are not suitable for overseas warehouses. Overseas warehouses are an important milestone in the development of the cross-border e-commerce industry. Overseas warehouses cannot be regarded as a logistics improvement behavior, but should be comprehensively evaluated. The various potential opportunities and challenges that overseas warehouses may bring.
(I) Localized service upgrade
Overseas warehouses are a comprehensive integration of cross-border e-commerce companies in supply, service, cost, customer experience, precision sales and other aspects. This has also become a window for cross-border e-commerce to display brands and provide after-sales and consulting services. This integrated attribute of overseas warehouses determines the continuous optimization and upgrading of its services, which can improve customer experience, achieve product upgrades and enhance brand effects. Overseas warehouses allow many manufacturers to directly send goods to the destination country (region) for direct sales, and deliver goods to the local area, thereby “fighting hand-to-hand” with local companies, thus forcing domestic manufacturers to establish a true sense of service, brand awareness and quality awareness.
(II) Low-price competition and free warehouse rent have become the norm of competition
Except for a few large overseas warehouses, many emerging small and medium-sized overseas warehouses have opened a free model, which means that third-party overseas warehouses can only make money through freight, operating fees and value-added services. Some overseas warehouse giants have strong funds, many warehouses, platform channels and wide sources of goods, and have been operating in overseas markets for many years, which has a great advantage. In order to win customers, small and medium-sized third-party overseas warehouses often waive warehouse rent in the early stage, and make up for the income by providing faster delivery and response speed, return services, convenient refunds and insurance services and other personalized services.
(III) E-commerce platforms promote overseas warehouse construction, which will drive the development of third-party overseas warehouses
Overseas warehouses have promoted the transformation of platforms to B2C and prospered the independent sites of large sellers. Amazon platform will continue to move towards the main population market occupied by big sellers, and special niche market sellers will use direct mail to fill the gap. Small sellers wander around the periphery, and those who survive have unique product features or marketing features. Therefore, global warehouses must first meet the needs of mainstream consumer areas, and the superior products will be branded bestsellers, and obvious regional distinctions will be weakened. Advantageous overseas warehouses will directly become the recommended logistics channels of the platform, and the binding will be closer. At present, overseas warehouses are either fighting alone or too scattered, so large logistics companies are urgently needed to integrate them.
(IV) Establish cross-border logistics parks in Europe and the United States to undertake domestic business, build bonded warehouses in emerging markets, cooperate with large foreign trade companies and brand companies, and build full-chain overseas operation centers
International express, postal parcels, dedicated line logistics and other products will continue to survive in the cross-border e-commerce logistics industry as complementary logistics channels for overseas warehouses. These products will serve more C (customer, individual consumers) end. Many overseas warehouse merchants will participate in the entire logistics and first-leg dedicated line transportation, and middlemen will become the receiving points of large logistics companies.