Exporting to overseas warehouses means that cross-border e-commerce sellers export goods in batches to overseas warehouses in accordance with general trade methods. After completing the sales transaction online, the goods are sent directly from the overseas warehouse to overseas consumers. Competition among cross-border export e-commerce is increasingly intensifying, and the requirements for localized logistics services are becoming increasingly stringent.
There have always been various pain points in direct mail logistics, and the establishment of standard overseas warehouses seems to have been considered a good solution. Overseas warehouse delivery has the advantage of increasing localization, broadening the scope of product selection, reducing customs clearance obstacles, reducing transshipment processes, reducing damage and packet loss rates, and increasing value-added services such as returns and exchanges. If direct mail could solve cross-border logistics problems, overseas warehouses would not rise.
When the product structure becomes stable, the logistics model will also become mature. Air routes are overwhelmed during peak seasons. Shipping from overseas warehouses still has significant advantages. Overseas warehouses also have a transit role. Many sellers use overseas warehouses and FBA warehouses (the delivery service provided by Amazon) at the same time. During peak seasons, they can directly transfer goods from overseas warehouses to FBA warehouses, or receive and process FBA returns. The specific advantages are as follows.
The first is to increase exposure, order conversion, and increase sales. Have overseas warehouses, change the location of items, and easily become an overseas seller. When local customers choose to shop, they will generally give priority to local delivery to shorten the delivery time. When buyers search for products, the location is in the list of the buyer’s country. It will rank higher than in other regions, thereby increasing product exposure and increasing store sales.
The second is short transportation time, reducing buyer logistics disputes and shortening the payment collection cycle for goods. Overseas warehouses reduce order response and delivery speeds, and improve the quality and efficiency of logistics and distribution, so that goods of various specifications can be delivered on time and with high quality.
The third is to expand the scope of product selection. Overseas warehouses have expanded the adaptability of cross-border logistics and distribution, providing strong protection for large, heavy, and high-value commodities such as home furnishings, gardening, and auto parts, and further It has broadened the categories of China’s manufacturing exports. Using overseas warehouses, sellers can expand their product selection unlimitedly. Some products have a long service life, such as barbecue grills, electromechanical beds, dog houses, furniture, etc. The market demand is large, and the retail price and gross profit are high. Nowadays, many foreign trade factories also use cross-border e-commerce to cut out multiple layers of middlemen and use overseas warehouses to do business.
The fourth is to reduce cross-border logistics costs for sellers. Transporting goods through shipping containers can overcome the limitations of ordinary air transportation for single commodities, especially items that cannot be transported due to various reasons. With the help of scale effect, bulk shipments can be made to Overseas, effectively reducing logistics costs. Local delivery is similar to domestic express delivery. It is based on the “sinking of popular products” to the warehouse in advance, and the turnover speed dilutes the warehouse rent. The overall logistics cost is still advantageous.
The fifth is to upgrade after-sales service and improve customer satisfaction. Use overseas warehouses for after-sales services, including after-sales services such as timeliness, goods returns, and exchanges. Achieve competitive local sales and improve store satisfaction. Overseas warehouses are very close to consumers and can be returned, exchanged or even repaired. This improves the experience of localized services, helps stimulate customers to make second purchases, and promotes accurate sales of products.
The sixth is to increase the selling price of products and increase gross profits. The expansion of categories promotes increased sales, fast delivery, good after-sales service, recognition by foreign buyers, and getting rid of vicious low-price competition, which helps sellers accumulate more resources to expand the market and further expand product sales areas.