For cross-border e-commerce, if you want to get higher profits and let buyers recognize your services, you must shorten the delivery time, and logistics is a key point. For sellers, the phenomenon of logistics explosion and delay in the transportation of goods is not uncommon. In this context, many sellers will send goods overseas in advance, and thus, overseas warehouses came into being.
1. Reasons for the rise of overseas warehouses
Overseas warehouses are a warehousing model that has emerged in line with the development trend of cross-border e-commerce. Overseas warehouses not only have logistics and storage functions, but also serve as a window for sellers to obtain comprehensive services such as brand promotion, after-sales service, information collection, and overseas rights protection, which can effectively help sellers solve many problems.
2. Types of overseas warehouses
The main types of overseas warehouses are overseas warehouses related to cross-border e-commerce platforms (such as FBA warehouses), third-party overseas warehouses (such as overseas warehouses provided by professional overseas warehouse service providers or international logistics companies), and some are warehouses built by large sellers themselves or jointly built with others. However, the cost of building warehouses overseas is relatively high, and not all sellers can afford it. The following content is mainly about third-party overseas warehouses.
3. Composition of the cost of using overseas warehouses
The calculation formula for the cost of using overseas warehouses is as follows.
Overseas warehousing costs = first-leg costs of goods + monthly warehousing rent and handling fees + local delivery costs
First-leg costs of goods: costs incurred when goods are shipped from China to overseas warehouses, including freight, tariffs, service fees paid to customs clearance companies and other miscellaneous fees.
Monthly warehousing rent and handling fees: warehousing rent fees incurred when the seller’s goods are stored in overseas warehouses, as well as fees charged by overseas warehouse service providers for handling goods entering the warehouse, putting them on shelves, sorting them, and changing packaging and labels.
Local delivery costs: After the buyer places an order, the overseas warehouse service provider is responsible for the costs incurred when shipping, including express delivery fees and packaging fees.