In order to make e-commerce companies’ transactions smoother and reduce logistics troubles, overseas warehouses came into being. Building overseas warehouses can not only avoid customs issues, shorten transportation time, but also reduce the trouble of returns and exchanges. Customers’ shopping satisfaction will increase, and sales will continue to increase.
However, it is also troublesome to build warehouses overseas by yourself, because overseas warehouse rents and manpower and material resources are not cheaper than domestic ones. E-commerce companies with strong financial resources can consider building warehouses overseas by themselves.
Ordinary e-commerce companies generally use third-party warehouses. Now third-party overseas warehouses have their own professional logistics teams and logistics system facilities, and the warehouses are reasonably located, which can provide cross-border e-commerce companies with one-stop services such as warehousing, picking, packaging, and delivery.
10.3.1 First-leg transportation costs
The first-leg transportation costs refer to the costs incurred by e-commerce companies in the process of transporting goods to the destination country of overseas warehouses. Chinese e-commerce companies transport goods from China to overseas warehouses by air, sea or express delivery, such as Amazon FBA warehouses, or exporters’ self-built overseas warehouses. The costs incurred on the way are the first-leg transportation costs.
For example, if the destination country is the United States, Chinese e-commerce companies may incur costs in air freight, sea freight bulk, sea freight full container, local trailers, etc. when sending goods to the US warehouse.
10.3.2 Tariff Fees
Tariffs are fees levied by a country’s customs on goods coming to the country. Now countries generally no longer use transit tariffs, so current tariffs mainly refer to import tariffs. Tariffs will increase the cost of imported goods and increase the market price of imported goods, thereby affecting the import volume of foreign goods. It is a means to restrict the import of foreign goods to protect the sales of domestic goods without having a major impact.
When the goods pass through the local customs, the customs will impose tariffs on imported goods according to local legal requirements. Generally, customs will adhere to the principle of actual reporting and actual expenditure, and the expenses incurred will be borne by the e-commerce companies.