With the continuous development of the global cross-border e-commerce industry, overseas warehouses have become a highly-regarded logistics solution. Overseas warehouses refer to warehouses set up by domestic enterprises in target markets to store goods, sort, pack and deliver them locally, and meet customer needs faster and more efficiently. This article will introduce the advantages and disadvantages of overseas warehouses.
1. What are the advantages of overseas warehouses?
1. Improve the speed of goods delivery.
The overseas warehouse is located in the buyer’s country. The seller prepares the goods to be sold to the overseas warehouse in advance and ships them from the buyer’s country. The logistics speed is unmatched by overseas direct mail, which greatly improves the delivery speed of goods, improves the buyer’s online shopping experience, and reduces various disputes and refunds caused by logistics.
2. Improve the shopping experience of shoppers.
Overseas warehouses can avoid the difficulties of overseas direct mail returns and exchanges, facilitate returns and exchanges, improve the quality of after-sales service, improve the buyer’s shopping experience, cultivate repeat customers, and increase the repurchase rate of stores and goods.
3. Save logistics costs.
If the off-season logistics freight is lower, you can prepare goods in overseas warehouses in advance. From the perspective of logistics alone, the logistics cost is reduced a lot.
4. Avoid the problem of warehouse arrangement during the peak season of logistics.
During the peak season of logistics, not only the prices of various channels have risen sharply, but also warehouse explosions often occur, which is a headache for cross-border e-commerce sellers. Overseas warehouses can avoid these problems very well. Don’t worry about warehouse explosions during the peak season, because the off-season inventory is sold during the peak season.
5. Increasing store sales is more conducive to market expansion.
When shopping online, buyers will choose merchants with fast logistics and fast local delivery. The overseas warehouse model has fast logistics and convenient after-sales returns, which greatly improves the store’s praise rate, increases the product repurchase rate, and increases the exposure of store products, thereby increasing the store’s sales and is conducive to market expansion.
2. What are the disadvantages of overseas warehouses?
1. High storage costs.
Although the logistics costs are reduced by staggered distribution, the storage costs are generally charged on a daily basis since the goods arrive at the overseas warehouse.
2. High inventory pressure.
Once there is a slight mistake in the selection or market grasp, resulting in unsalable goods and poor sales, a large number of goods in the warehouse will be squeezed, which will not only fail to achieve the goal, but also increase the storage cost, making it difficult to sell the goods, and a dilemma.
3. Inconvenient capital turnover.
Overseas warehouses invest a lot of money, such as batch stocking, stocking, logistics, warehousing, etc. Moreover, the capital return cycle is long, which brings inconvenience to the seller’s capital turnover and easily leads to a break in the capital chain.