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Status And Development Of Overseas Warehouses
Kinghood International Logistics Inc | Updated: Sep 28, 2018

As an important logistics supporting facility for the development of cross-border e-commerce, overseas warehouses have been deeply rooted in people's mind with the development of many years, and gradually become an important choice for cross-border logistics.FBA warehouses and third-party overseas warehouses are blooming comprehensively, which promotes the rapid development of overseas warehouses.

1. FBA warehouse

The full name of FBA is Fulfillment By Amazon. It is a one-stop logistics service provided By Amazon, including warehousing, picking and packing, delivery, collection, customer service and return processing.According to statistics, 83% of sellers are using FBA.Professional logistics service and fast delivery time is the biggest advantage of FBA.For amazon sellers, using FBA can help to improve in-station ranking, get more traffic and save them from logistics disputes.But it has the following problems:

1. FBA costs are relatively high.

2. If something goes wrong when the label is pasted, it will affect the storage of the goods.

3. Return address only supports local returns.

4. The buyer can return the goods without reason for 7 days, during which there will be no communication with the seller.And amazon rules, the same label bar code after the withdrawal of warehouses, six months can not be returned.Once the phenomenon that returns goods to replace, can destroy goods on the spot only, and entrust destroy also want additional charge.

5. Amazon's customer service feedback is not timely, and can only communicate in English.

Third party overseas warehouse

In view of these problems, third-party overseas warehouses have their advantages in toucheng clearance and inventory management, which makes more and more sellers consider using third-party overseas warehouses, or FBA warehouses cooperate with third-party overseas warehouses.Huge market demand drives the development of third-party overseas warehouses faster.Based on the seller's demand, we summarize the advantages of third-party overseas warehouses as follows:

1. The demand for high cost performance of initial transportation and warehousing services

The seller can ship some of the goods to third-party overseas warehouses by sea.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.In addition, overseas warehouses can help merchants reduce warehousing 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. Handle 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.

3. Timely delivery requirements

The delivery time is faster, and 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, customs clearance and so on, we will no longer have to worry about the customs clearance of goods in the warehouse. We will wait for the order and deliver the goods at any time.

The development of overseas warehouses

(1) implement multi-warehouse linkage and optimize the layout

Look for the warehouse with low cost of integrated logistics considering regional factors.For example, distance from the FBA warehouse, regional population density, distribution path and local logistics.As the time and cost of logistics is proportional to distance, multi-warehouse layout is the best means to reduce logistics cost and improve distribution speed.

(2) enhance local advantages and provide value-added services

Overseas warehouse needs to give play to its localization advantages, give play to its unique value in customer service, inventory sales and after-sales service, create business value for sellers and provide better shopping experience for customers.

(3) improve efficiency and reduce costs by supporting information

Internet application, information management, to achieve efficient logistics operations.The WMS system can be used to help the sellers better control the logistics situation.Visualization of inventory, financial and other data enables overseas warehouse to better grasp operation status and business analysis.

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