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Reasons For The Rise Of Overseas Warehouses
Kinghood International Logistics Inc | Updated: Aug 24, 2018

Overseas warehouse refers to the transnational logistics situation in which enterprises export bulk goods to overseas warehouses in accordance with the general trade mode to achieve local sales and distribution.It is a major innovation of cross-border e-commerce logistics mode, which solves various difficulties of cross-border e-commerce and brings good shopping experience to customers.For amazon sellers, 75% currently use third-party overseas warehouses, and 85% use FBA.Overseas warehouse is an inevitable trend of logistics industry development in the age of e-commerce. Do you know the reason for the rise of overseas warehouse?

I. the rapid development of cross-border e-commerce trade demands the logistics industry increasingly

The mentality of foreign buyers and domestic buyers are the same, both hope to purchase goods can be quickly sent to the hands.However, it takes a lot of transportation time and customs clearance time for the seller to deliver the goods to the buyer. Undoubtedly, the long waiting period will make the buyer's shopping experience greatly discounted.So how do we solve this problem?The answer is to go abroad and provide the same local services as foreign e-commerce.The seller can ship some of the goods to third-party overseas warehouses by sea.When the amazon warehouse is out of stock, goods can be shipped and replenished directly from overseas warehouse, which saves the time of the parcel's journey from home to abroad and the link of passing the customs.Increase efficiency.

When customers are not satisfied with the products, the amazon platform supports the buyers to return and replace the products without reason for 7 days. For cross-border e-commerce companies, they not only have to bear the freight, but also the products returned by amazon to the sellers cannot be resold.The appearance of overseas warehouse can well solve this problem. When amazon merchants have the problem of returning and replacing goods, they can contact with the third-party forwarder company to realize the operation of FBA goods' returning to the warehouse by labeling.The overseas warehouse can help the seller to change the label, pack, and enter the FBA warehouse for resale.

Ii. Cross-border e-commerce seeks overseas warehouses based on enterprises' own needs

Firstly, the biggest difference between cross-border e-commerce and domestic e-commerce is to sell goods abroad. The unstable logistics system is a major challenge.For both enterprises and individuals to expand their businesses, they need not only to maintain their own e-commerce platforms, but also a logistics mode that can reduce costs, accelerate the delivery time and avoid risks.If the seller chooses FBA, amazon will charge the seller two fees, one is commission sale fee, which is about 15% to 26% of the value of goods, and the other is FBA storage fee.Both costs add to the seller's costs.

The choice of overseas warehouse is to reduce logistics costs, and sellers can transport some goods to the third party overseas warehouse by sea through the most economical mode of transport.When the seller needs timely replenishment to the FBA warehouse, the goods can be delivered directly from the overseas warehouse.Saving the cost of shipping goods again from home.Second, overseas warehouse can help merchants reduce warehousing costs.The first six months of storage at an FBA warehouse is very cheap, but after six months storage costs have skyrocketed tenfold, creating another huge charge for amazon merchants.At this time, merchants can choose to transfer the goods to a third party overseas warehouse.Replace the label and return to the FBA warehouse with a brand new product.The FBA warehouse will also charge the storage fee according to the charge method of the newly stored goods.Reduced the warehouse cost of the business effectively.

Second, the goods are far abroad, domestic sellers are difficult to manage and emergency treatment of goods.The use of overseas warehouses can effectively manage goods.After the goods are sent to the third-party overseas warehouse, the overseas warehouse will directly assist the management.The work such as post and exchange is operated by the overseas warehouse.For sellers, it's easier.

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