The layout of planting flags is a strategic consideration. At present, there are very few countries that really need and are suitable for overseas warehouses, and there are only a few countries that are relatively mature in global location selection, such as the United States, Germany, Japan, etc. If you build a self-operated overseas warehouse next to the FBA warehouse through a wall, even if you want to fake it, the cost will not be affordable. Amazon has 60 operation centers in the United States, which are actually integrated warehousing and distribution. They are densely connected to major airports or ports through a network, which avoids long-distance transportation and shortens transportation time. The order flow and warehousing costs of overseas warehouses are key factors in location selection.
Wherever the market is, the warehouse is located. The first stop for overseas warehouses must be the United States. The United States has a large land area, and the threshold for logistics and warehousing is high. The location should be close to important ports and transportation hubs, close to densely populated areas, rich in Chinese labor resources, and large warehouse stocks. According to industry data, the eastern United States accounts for 50% of e-commerce orders in the United States, mainly distributed in: Florida, New York, Pennsylvania, and North Carolina; the western United States accounts for 25%, distributed in California and Washington; other regions account for 25%, such as southern Texas. and northern Chicago, etc.
In this way, the overseas warehouses in the United States are basically locked in a small number on the east and west coasts and in the south, including the distribution of Amazon warehouses. In addition to selecting warehouses in nearby consumption areas, reducing freight costs, and improving timeliness, factors such as labor force, tax-free states, and warehouse inventory are also critical. Because overseas expansion is difficult to achieve in one step, warehouse expansion and relocation are inevitable with business development, and long-term considerations must be considered.
Based on the above analysis, NJ, New Jersey in the eastern United States, is definitely the choice. It is close to New York, has warehouse clusters, Chinese people gather, and has developed transportation. It is said that e-commerce in southern Texas accounts for about 11% of the total, making it the third largest delivery destination area. It is suitable to set up a warehouse in the international port city of Houston to cover the southern United States.
California, Oregon, or tax-free states are preferred in the west. It is easier to recruit Chinese employees here than in the east. For example, in Los Angeles, transportation is convenient, and relatively low-cost Mexican and African-American workers can be easily hired. Industrial City warehouse rents there are also moderate. Most Chinese-funded overseas warehouses mainly employ local Chinese warehouse managers and operators in the United States. In addition to cost control, Chinese industriousness, and convenient cultural communication, hiring local American workers also faces complicated laws and regulations.
Renting a warehouse is more complicated. It takes a long time from negotiating with an agent, reviewing with a lawyer, negotiating with the landlord, to purchasing equipment. About 70% of warehouses in the United States are controlled by Jews, so be extra careful when doing business with them. , such as the handling of details such as environmental protection, explosion prevention, labor unions, and repairs. Therefore, when building an overseas warehouse, we must first solve the localization problem.
US warehouses can also partially cover Canada, but due to the relatively low threshold, goods may have incurred tariffs in the past and the timeliness is not good. If you set up a warehouse in Canada and the area is too wide, you usually choose Vancouver or Toronto, near the urban agglomeration. Australia is also sparsely populated, but highly urbanized and has concentrated consumption areas. You can only set up warehouses in Sydney, Melbourne or Buenos Aires on the east coast. Lisbane line.
It is much easier to select locations for local warehouses with developed logistics. For example, Japan is a small country and express delivery time is almost not affected by location. Overseas warehouses are concentrated in the suburbs from Osaka, Nagoya to Tokyo, and focus on Depends on the supporting conditions of the warehouse itself. In the UK, there are options around the core Greater London area, and the extensions are connected to Portsmouth, Birmingham and Liverpool. Those who use local warehousing in the UK must register for VAT and make quarterly declarations.
Similarly, Germany has the largest concentration of warehouses at the airport in Frankfurt. The port of Bremen, the industrial city of Dusse, the railway port of Hamburg, and Stuttgart near France all have logistics centers with their own characteristics; while neighboring Belgium and The Netherlands is also close to the sea and has some tax avoidance policies.
Germany also requires VAT. According to the regulations of the German Federal Tax Office, overseas merchants and individual taxpayers do not have tax-free amounts for their local operations and service activities in Germany. Regardless of the size of the business, they need to register and declare. When importing to an overseas warehouse in Germany, import tax is paid first, and the sales value-added tax (VAT) is generated when the goods are sold in Germany. For example, Amazon is in Leipzig, 4PX is in Hamburg, Wanyitong is in Bremen, Export is in Berlin, Zebra and China Post are in Frankfurt, etc.
It is difficult to establish overseas warehouses in emerging markets. Special national conditions need to be considered. There are three main reasons: tariff barriers, weak regulations, and backward logistics. Russia and China’s cross-border e-commerce used to rely entirely on direct mail. Customs had certain restrictions on the weight, volume, and value of packages. The vast delivery range within the country made the time limit almost out of control.
The main purpose of Russian overseas warehouses is to solve the delivery time limit. In theory, it can increase the 20~50 days of direct mail to 3~10 days. But the difficulty is trade customs clearance. Very few sellers have this customs clearance capability. Overseas warehouses must provide sellers with a full range of comprehensive trade services. Customs inspections are very arbitrary, and the taxes and fees caused by frequent subsequent replenishment are also very high. All products There are complete access requirements for certification, insurance, tax payment, and commodity inspection. The central urban area accounts for the main demand, and Moscow weekly use is the focus. Russia Express, Wangji, Jiewang, etc. have successively launched Moscow overseas warehouses. The local labor and commercial express delivery costs are high, and the current effect is not obvious.