Although overseas warehouses have played a very important role in the development of China’s cross-border e-commerce, at present, China’s overseas warehouse construction has also encountered problems and shortcomings. Enterprises that choose to operate cross-border e-commerce through overseas warehouses may not all be profitable. Some cross-border e-commerce companies have even suffered huge losses because of overseas warehouse plans. Based on many years of cross-border e-commerce experience, the current problems encountered by overseas warehouses are as follows.
1. Pressure of inventory and cost.
Although overseas warehouses have very significant advantages in customer experience, delivery speed, and supply chain efficiency, they are also very stressful and risky for cross-border e-commerce operators, especially those small and medium-sized cross-border e-commerce operators. The first is the pressure of inventory. Through pre-shipment and sea transportation, cross-border e-commerce companies first encounter inventory pressure. Overseas warehouses often have the problem of unsalable products, but at this time, it is difficult for products to be returned to China. Cross-border e-commerce operators need to make reasonable layouts through data analysis and research and overseas resources in the destination country from product categories, sales cycles, buyer purchasing habits, market forecasting and risk assessment. Overseas warehouses have very high management costs in terms of product inventory, warehouse rental in the destination country, labor costs, and delivery. This is the most important issue that small and medium-sized cross-border e-commerce companies should consider at present.
2. Foreign governments are increasingly strict in managing overseas warehouses.
2014 was the peak period for the construction of overseas warehouses for China’s cross-border e-commerce. From the government to cross-border enterprises, logistics companies, and IT companies, they have all established their own overseas warehouses overseas. At the same time, with the development of cross-border e-commerce exports, foreign governments have different attitudes. Because the development of China’s cross-border e-commerce, especially the construction of overseas warehouses, will bring certain market impacts to the local business and retail industries of the destination country, the European and American governments have been increasingly strict in managing overseas warehouses in the past two years, and have continuously intervened in the core links such as customs clearance, taxation, and commodity inspection of goods to strengthen the management of cross-border e-commerce. This is also an issue that many cross-border e-commerce operators should pay attention to.
3. The development of cross-border overseas warehouses is uneven.