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Amazon Seller Speed Read!What You Need To Know About Using An Overseas Warehouse
Kinghood International Logistics Inc | Updated: Oct 29, 2018

For amazon sellers, logistics is a barrier that has to be broken if they want to get higher profits. Overseas warehouses are emerging in such market demands.By using an overseas warehouse, you can ship goods abroad and locally, giving you a fair chance to compete for product quality and marketing skills.Many sellers may not know much about overseas warehouses, but today we're going to look at all the things you need to know about using them.

Overseas warehouse as its name implies is overseas storage service.The one-stop control and management service of goods storage, sorting, packaging and delivery provided by online foreign trade trading platform and logistics service providers independently or jointly for sellers in the target area of sales.The seller stores the goods to the local warehouse. When the buyer is in need, he/she will respond quickly and sort, pack and deliver the goods in time.

We summarize the advantages of overseas warehouse as follows:

1. Reduce logistics and storage costs

Overseas warehouse can help reduce warehouse costs.According to amazon's latest long-term storage policy, storage costs for items that have been stored in amazon's FBA warehouses for 365 days or more will skyrocket.The "inventory performance indicator", which has been in place since July 1, 2018, limits inventory on sellers' accounts with scores below 350 and requires payment of an excess inventory charge of $10 per cubic foot per month.At this time, merchants can choose to transfer some of the goods to third-party overseas warehouses.Replace the label and return to the FBA warehouse with a brand new product.

2. Speed up the replenishment time

The seller delivers the goods directly from the overseas warehouse, saving the time for the package to travel from home to abroad.At the same time, after solving the complicated problems of transportation, customs declaration and customs clearance, the goods in the warehouse will no longer have to worry about customs clearance.

3. Meet personalized demands such as returns

When amazon merchants encounter the problem of returning and replacing goods, the merchants can contact with the third-party forwarder company to achieve the operation of FBA goods' returning to the warehouse by labeling.The overseas warehouse can help customers change labels, pack, and enter the FBA warehouse for resale.

Why do amazon sellers use overseas warehouses?

First, speed up the replenishment of amazon warehouse.The overseas warehouse will be delivered directly from the local market and quickly replenished to the amazon warehouse.With the same space and time advantages as local merchants, it is an efficient choice for sellers to choose overseas warehouses, which can not only greatly improve buyers' shopping experience, but also comply with the development of cross-border e-commerce market.

Second, reduce the risk that amazon's warehouses will refuse entry.Sellers using overseas warehouses can not only restock goods to amazon warehouses faster, but also check the logistics distribution information throughout the process. Meanwhile, due to the reduction of the transfer process, the rate of product damage and loss is also greatly reduced.

Third, reduce customs risks.For sellers, the overseas warehouse is the traditional foreign trade logistics mode, which is imported in accordance with the normal customs clearance process, which greatly reduces the customs clearance obstacles. Meanwhile, it breaks through the restrictions on the weight, volume and value of the transported goods, expands the transportation category and reduces the logistics costs.

At present, overseas warehouses have become a favorable weapon for cross-border e-commerce competition. Who can use overseas warehouses well will be the biggest winner in localization of cross-border e-commerce sellers.

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