Overseas warehouse refers to the storage facilities built overseas. In simple terms, it means building your own product sales warehouse overseas. If there are customers who buy products, they can be shipped directly from overseas, which not only saves time but also has low logistics costs. So, do you know what kinds of overseas warehouses there are? What are the advantages and disadvantages of building overseas warehouses for cross-border e-commerce? Let’s take a look with the editor.
At present, there are three forms of overseas warehouses in the market: Amazon FBA, merchants’ self-built overseas warehouses and third-party overseas warehouses. So, what are the differences between these three models?
Amazon FBA:
Amazon FBA is a series of e-commerce services provided by Amazon, including warehousing, picking and packing, delivery, payment, return and exchange, etc. As one of the world’s largest e-commerce retail platforms, its warehouses are mostly close to airports, and the delivery efficiency is very high. Moreover, with many years of logistics experience, logistics problems are relatively small.
However, its fees are relatively high, and customer service can only communicate in English through emails, and the response speed is very slow, which will affect the user’s shopping experience.
Merchants can also build their own overseas warehouses, and their own people can provide a series of problems from customs clearance, tax declaration, logistics and distribution. The company can master the system and manage it by itself. However, the risks and costs of building overseas warehouses by themselves will be higher, and if the volume is not large, it is difficult to get local preferential delivery prices without scale advantages.
Third-party overseas warehouses:
In addition to the above two overseas warehouse models, there is also a third-party overseas warehouse. There are two ways for cross-border e-commerce to cooperate with third-party overseas warehouses. One is leasing and the other is cooperative construction. If leasing, there will be leasing fees, logistics fees, etc., and if cooperating, there are generally only logistics fees.
Third-party overseas warehouses are conducive to improving the profit margin of a single item, and because of the stable supply chain, it is also conducive to the sales of goods, and it will also drive customer experience and increase the repurchase rate.
However, this model also has certain disadvantages. For example, if the inventory forecast is inaccurate, it may lead to a backlog of goods, and if there is a problem with the tracking of goods, it may lead to the loss of goods.
In fact, no matter which overseas warehouse model is used, there are pros and cons. The above is an introduction to the three models of establishing overseas warehouses and their advantages and disadvantages. I believe everyone has understood it after reading it. Friends in need can refer to it.