After receiving the goods, buyers are often dissatisfied with the goods and want to return or exchange them. In addition, the goods may be damaged, short-loaded, or sent incorrectly during transportation. At this time, customers may request a return, exchange, or re-send.
If the goods are sent and received across borders, the logistics time, round-trip logistics costs, packaging and mailing, and other manpower and material resources in the middle of the goods transportation will inevitably be wasted. However, if these situations are adjusted in the overseas warehouse, the logistics time can be greatly shortened, the cross-border transportation costs can be saved, and customers can be given a better business reputation and increase customer satisfaction.
10.2 Three types of overseas warehouses
There are three common types of overseas warehouses: third-party overseas warehouses, FBA, and self-built overseas warehouses. For these three types of overseas warehouses, we can choose according to our own stocking needs.
10.2.1 Third-party overseas warehouses: characteristics + selection criteria
Overseas warehouses are designed to address various problems in cross-border logistics. This new form of cross-border logistics is conducive to the overseas expansion of cross-border e-commerce. Through overseas warehouses, export enterprises can ship goods directly from local places, which can greatly shorten the transportation time, effectively reduce the risks and transportation costs in long-distance transportation, and it is also convenient for buyers to return and exchange goods. In addition, when shipping goods through overseas warehouses, there is no need to face double customs inspections at home and abroad, which reduces customs clearance obstacles. Finally, the comprehensive advantages of overseas warehouses can enhance customer experience and bring long-term benefits to cross-border logistics and sellers. Overseas warehouses can be built by themselves or in cooperation with third parties. The latter model is introduced here.
A third-party overseas warehouse is a warehouse built overseas by overseas enterprises alone or in cooperation with cross-border e-commerce. If it is built by an overseas enterprise alone, the form of cooperation is leasing, and it is necessary to pay operating fees, warehousing fees and logistics fees: if it is a cooperative construction, only logistics fees need to be paid.
From the current situation, the demand for overseas warehouses for exports is increasing, so the use of third-party overseas warehouses by cross-border e-commerce is in line with the times and can bring many conveniences to itself. This cooperation model can not only reduce costs (“saving money”), but also “increase income”.
For example, this model can break the restrictions on the volume and quality of goods in transportation and expand the product categories: the average selling price of such goods is generally higher than that of direct mail and other models, which can increase the profit of goods; the warehousing and transportation system is relatively stable, the time cycle is short, and it can effectively increase sales. These advantages will enhance customer experience, increase praise, and form a positive effect.
Of course, everything cannot be all good without any harm, and this model also has some disadvantages. First of all, facing such high market demand, third-party overseas warehouses have sprung up in recent years, not only e-commerce companies, logistics companies, but even the IT industry has joined in, making it difficult for sellers to choose.
In addition, overseas warehouses are in the initial stage of construction after all, and a good supply system has not yet been formed. Information is missing and the phenomenon of insufficient goods being sent to the wrong place frequently occurs, which brings a lot of trouble to sellers, not only affecting buyers and sellers, but also having a negative impact on the development of themselves and third-party overseas warehouses. Moreover, in terms of inventory in third-party overseas warehouses, it is often difficult for sellers to make accurate predictions. Sometimes the inventory is piled up, and sometimes the inventory is insufficient, which either leads to supply exceeding demand or causes goods to be unsalable.
In short, overseas warehouses are an important part of the development of cross-border e-commerce, and the third-party overseas warehouse cooperation model is an important part of this part. What cross-border e-commerce and overseas warehouse companies need to do is to maximize their advantages and minimize their disadvantages.