First, let’s look at the basic process of using overseas warehouses. From the figure, we can see that the process of using overseas warehouses can be simply divided into six major sections. For merchants with more concentrated products, the corresponding product export customs are made. Applying for tax subsidies is also a necessary link.
In the entire process of using overseas warehouses, for merchants who use service providers for both the first and last leg, only the purchase and sealing of goods are in the hands of the merchants themselves. For the first and last leg, merchants can usually choose different service providers according to their own needs.
At present, many merchants also have their own fully managed warehouses and delivery points overseas. We recommend that when the overseas warehouse orders are less than 400 pieces per day (a month of stable sales), do not adopt the model of self-built overseas warehouses. After reaching a certain order base, it is also necessary to compare and analyze the prices obtained from overseas logistics channels (similar to USPS, Roval Mail) with the prices of service providers. Usually, the prices of various countries’ postal services can be obtained through quotations on their websites, or they can confirm the prices with local logistics channel agents through emails. Self-built overseas warehouses are naturally more advantageous than service providers in terms of logistics costs and processing efficiency, but the management costs are high, and issues involving local regulations are very cumbersome to deal with, so it is recommended that you carefully consider it in combination with your own product situation and order base.
The fees charged by service providers are usually divided into door-to-door pickup fees (including packaging and trailer fees), warehouse rental fees, order handling fees, customs clearance fees, tariffs (value-added tax), first-leg fees, last-leg fees, and other value-added fees. When choosing a service provider, it is necessary to clarify the other party’s charging method and all items that will incur fees. Many merchants tend to choose double-clearance, tax-inclusive and similar trouble-free services, but many times the costs incurred are not as simple as imagined, so it is recommended that merchants find out which links cannot be saved before establishing cooperation.
In the entire process of using overseas warehouses, the risk of customs clearance is relatively high. It is recommended that when using sea transportation for the first leg, the customs clearance capabilities of the carrier and the risk of the goods themselves should be evaluated.