Advantages:
1. Improved logistics efficiency
Direct local delivery from overseas warehouses effectively reduces order response time, greatly shortens the time used for transportation and customs clearance, improves logistics delivery efficiency, and consumers can receive express parcels faster.
2. Improved customer consumption experience and satisfaction
Consumers of local delivery can query logistics and delivery information throughout the process; the reduction of transit procedures has greatly reduced the rate of express damage and loss; if the products received by customers are damaged, short-loaded, or sent to the wrong goods, overseas warehouses can provide fast return and exchange processing. Value-added services not only improve customer satisfaction, but also save transportation costs and reduce losses for sellers.
3. Reduced logistics costs
The first-leg transportation of overseas warehouses adopts traditional foreign trade logistics methods, and transports goods abroad in batches, effectively reducing the logistics costs of sellers; imports according to normal customs clearance procedures greatly reduce customs clearance obstacles, and also break through the restrictions on the weight, volume, value, etc. of postal packages and international dedicated logistics on the transportation of goods, expanding the transportation category and reducing logistics costs.
4. Increase exposure
By changing the location of the item, you can easily become an overseas seller, increase the exposure of the product in the sales location, and increase the sales of the store.
5. Increase the selling price
You can increase the price of the items sold according to the local price level to achieve competitive local sales.
6. Help expand the market
Sellers can gain more recognition from overseas buyers through overseas warehouse operations and word-of-mouth marketing, which facilitates sellers to accumulate more local resources to expand the product sales field and sales scope.
Disadvantages of overseas warehouses
(1) You need to pay for overseas warehousing costs, and the costs vary from country to country (region). Sellers need to compare the costs of overseas warehouse delivery with other delivery methods and make a choice based on the comparison.
(2) Overseas warehouses require sellers to have a certain amount of inventory. Some buyers’ specially customized products are not suitable for overseas warehouse sales.
(3) Overseas warehouses are difficult to handle if the inventory is large. How to classify and centrally handle the unsalable inventory of sellers and then sell it through appropriate channels is a big problem.
(4) Setting up overseas warehouses faces numerous localization challenges.