Overseas warehousing services refer to one-stop management and control services for cross-border e-commerce sellers to store, sort, pack and deliver goods in the destination country. Generally speaking, the relatively standardized overseas warehousing services on the market now include three parts, namely the first-leg transportation of the goods, warehousing management after the goods arrive, and last-leg transportation (local distribution).
The specific operating procedures of overseas warehouses are as follows:
1) First-leg transportation: As the name suggests, it is the initial transportation process of goods. After the buyer purchases, how does the cross-border seller transport the goods to the overseas warehouse in the destination country? There are several types of sea, air and land transportation. The seller will choose according to the value of the goods and products.
2) Warehousing management: Sellers can remotely operate overseas warehoused goods through the logistics information system and manage inventory in real time.
3) Last leg transportation: To put it simply, it is the problem of local transportation of goods. After the goods arrive at the transit warehousing center, the overseas warehousing center will deliver the goods to the customer by local mail or express delivery.
If cross-border e-commerce sellers provide overseas warehousing services, they should make full use of its various functions to make their cross-border e-commerce more cost-effective and save time and effort.
What are the advantages and disadvantages of using overseas warehouses
Advantages
1. Low cost increases profit margins
2. Personalized packaging< /p>
3. Flexible return and exchange processing
Disadvantages
1. Enterprises that have entered the e-commerce field have not long since entered the e-commerce field. During the market development stage, the shipment volume is small and orders cannot be processed. In the case of rapid formation, overseas warehouses should not be selected. Although Amazon FBA compresses profit margins, it can help sellers increase product exposure. Once the product is recognized by the market, consider increasing profits.
2. Amazon Prime members can enjoy 2 days of free arrival in the United States. Currently, overseas warehouses cannot guarantee that the goods will arrive in the United States on the 2nd, and a certain delivery fee will be charged.
3. Not all products are suitable for “overseas warehouses”. Generally speaking, the products suitable for “overseas warehouses” mainly include:
(1) Products with large volume and weight: Due to the limitations of small packaging and dedicated line specifications of these products, the cost of using international express delivery is very expensive , and using overseas warehouses will break through product specification restrictions and reduce logistics costs.
(2) Products with high unit price and high gross profit: This is because high-quality overseas warehousing service providers can control the damage rate and loss rate to a very low level, reducing the risks for sellers of high-value goods.
(3) High cargo turnover rate: This is what we often call best-selling goods. For best-selling products, buyers can process orders faster and collect funds through overseas warehouses; for slow-selling products, while occupying funds, corresponding warehousing fees will also be incurred. Therefore, in comparison, goods with high turnover rates are more suitable for overseas warehouses.