1. Convenient transportation and diverse functions
Overseas warehouses are generally located in places with convenient transportation. Some overseas warehouses are also close to hub airports. They are suitable for various customs clearance modes such as direct mail, direct purchase, bonded stocking, and general trade. They have both import stocking functions and export stocking functions. For cross-border e-commerce, choosing overseas warehouses can be even more powerful.
2. Reduce logistics costs
Cross-border e-commerce exports goods to overseas warehouses in the form of general trade, and completes the first-leg transportation in the form of bulk shipments, which is more cost-effective than scattered international express delivery. Some products can also enjoy preferential policies for export tax rebates.
3. Shorten delivery time and improve customer satisfaction
For example, if commercial express is used to ship from China to American sellers at the same time, postal parcels take 7 to 15 days, and express delivery takes 3 to 7 days, or even longer. If overseas warehouses are used for delivery, it only takes about 2 days. Speeding up delivery and shortening delivery time will also shorten the transaction time of the entire order, allowing consumers to enjoy a localized shopping experience, making it easier to gain the trust of buyers, and improving customer satisfaction.
4. Returns and exchanges are available to improve the shopping experience of overseas buyers
Every buyer attaches great importance to after-sales service. If an overseas buyer purchases a product and needs to return or exchange the product for various reasons, it would be uneconomical for the seller to ask the buyer to return the product to China. It would be much more convenient if the product is returned to an overseas warehouse. Overseas warehouses can provide buyers with return and exchange services, which can also improve buyers’ shopping experience and increase buyers’ repeat purchase rate.
5. It helps sellers expand product sales and occupy the market
There is no need to elaborate on this effect. Why do sellers use overseas warehouses? Because using overseas warehouses can sell more products, make more money, and occupy a larger market.
6. It can make sellers more rigorous in product selection
Products shipped from overseas warehouses need to be of guaranteed quality and meet the needs of local buyers in order to make sellers profitable. In this way, sellers will be more rigorous in product selection.
7. Sellers do not need to worry about warehousing and distribution issues
Sending goods to overseas warehouses is equivalent to outsourcing the warehousing and distribution business to overseas warehouse service providers, who have professional teams and rich experience in warehousing management. As long as the seller issues a shipping order, they will process the order for the seller. Sellers do not have to spend time on product warehousing, inventory counting, and packaging and distribution.
8. Can effectively avoid cross-border logistics peaks
Take holidays as an example. During holidays in Western countries, such as Christmas, Halloween or Black Friday, domestic sellers will concentrate on shipping in large quantities after the holidays, which will inevitably seriously affect the speed of logistics operations and thus affect the buyer’s delivery time. The long wait will make buyers dissatisfied and even cancel orders, which can easily cause sellers to lose customers. At this time, the advantages of overseas warehouses are highlighted. If sellers send goods to overseas warehouses in batches in advance, they only need to issue instructions for delivery, without the trouble of slow logistics during peak periods.