Why eBay recommends using overseas warehouses when opening a store and the impact of not using them

When operating business on e-commerce platforms, logistics costs and logistics efficiency have always been the focus of sellers. For eBay sellers, the use of overseas warehouses can not only improve account performance, but also help sellers reduce costs and increase profits. However, if sellers choose not to use overseas warehouses, they may face a series of adverse effects, including increased logistics costs and extended delivery cycles.

Advantages of using overseas warehouses

Improve account performance

• Filling in the overseas warehouse address will help improve the search ranking and exposure of your eBay store.
• It is easier for products shipped from overseas warehouses to obtain the “Fast & Free” logo, thereby increasing the click-through rate by approximately 11%.
• It helps to avoid medium and low reviews and low ratings due to logistics reasons, thereby improving the seller’s overall evaluation.

Increase profits

• Through the centralized transportation mode of overseas warehouses, especially for products weighing more than 400 grams, logistics costs can be significantly reduced.
• Overseas warehouses allow sellers to sell a wider variety of products, including those that are difficult to sell through direct mail due to their large size or weight.
• This approach not only expands the product line, but also increases profit margins.

Reduce costs

• For heavier products, using overseas warehouses can significantly reduce logistics costs.
• The outsourced warehouse is responsible for product packaging, simplifying the operating process and further reducing management costs.

The impact of not using overseas warehouses

Influence buyers’ purchase intention

• The lack of overseas warehouses may result in lower unit prices and affect sales conversion rates.
• Compared to products shipped directly from overseas, products using overseas warehouses have higher sales volume.

Increase in logistics costs

• Failure to utilize overseas warehouses will lead to increased logistics costs, especially when the weight of the goods exceeds a certain standard.
• Concentrated water transportation is more cost-effective than direct mail.

Delivery cycle extended

• If overseas warehouses are not used, the delivery time may be extended, affecting the ability to cooperate with sales in other places.

Account performance is poor

• Good buyer feedback is one of the important factors in improving seller account performance.
• Data shows that using overseas warehouses can help reduce the rate of logistics problems.

Sales categories are limited

• Overseas warehouses allow sellers to break through the restrictions on weight, volume and price of goods and expand more product categories.

Order response time extended

• The management system of overseas warehouses helps shorten order response time and improve logistics and distribution efficiency.

Customer satisfaction dropped

• Fast and effective return and exchange services can enhance customer satisfaction and build brand loyalty.

To sum up, although opening an overseas warehouse requires a certain cost and corresponding management pressure, for eBay sellers with a certain scale of cross-border e-commerce sales, the many benefits it brings are obvious.