What are the advantages and disadvantages of UK overseas warehouses?
British overseas warehouses are overseas warehousing established in the UK. They generally provide services such as dropshipping, transfer, return and exchange, and warehousing. The UK is the fourth largest e-commerce market in the world, with annual online revenue of US$118 billion, an increase of 12%, ahead of Germany and Japan. In such a good market environment and network penetration rate, more and more small partners have begun to delve into the British market. Today, the editor will introduce to you the model, advantages and disadvantages of British overseas warehouses?
1) Third-party overseas warehouse
It is a model chosen by many sellers. In the warehouses of major logistics companies established in the UK, sellers can transport goods to overseas warehouses through the logistics company; overseas warehouses will provide consignment, transfer and other services at relatively low costs.
2) UK FBA is mainly used to store products from Amazon sellers.
In the first shipment from the UK Amazon warehouse, the seller needs to contact the logistics company by sea or air, and then send it to the designated Amazon warehouse. For Amazon products, it can improve product rankings and the delivery efficiency is very fast.
At present, there are relatively few self-operated overseas warehouses. Mainly, some large companies establish their own overseas warehouses to provide warehousing, delivery and other services for their products. Since it is managed by the enterprise itself, the operation is relatively flexible and the controllability is relatively high.
The costs involved in UK overseas warehouses include the following: Overseas warehouses will calculate storage fees based on the weight and occupied area of the product, and will be calculated on a monthly basis.
Labor costs, such as maintenance, delivery and transportation of products from overseas warehouses. Order management, product packaging, etc. all require manual operations and require labor costs.
Other service fees include the above-mentioned transfer, labeling, warehouse replenishment, value-added tax and other services, and a certain service fee needs to be paid.
1. Improve the delivery time of goods. By shipping the goods to the British overseas warehouse in advance, the buyer can ship the goods through the overseas warehouse after placing the order, saving the time of the first-leg logistics, and can be delivered to the buyer in 1-2 working days, which is a great benefit It improves the delivery timeliness and the performance of their own stores on the platform, allowing sellers to focus on optimizing their products and improving customer experience.
2. Reduce logistics and transportation costs. When stocking the FBA transit warehouse, you can prepare more of some hot-selling products to avoid the possibility of out-of-stock and out-of-stocks due to hot orders. This can also save part of the logistics and transportation costs, because you are selling in large quantities. The stocking is delivered from local warehouses to buyers, thereby improving the competitiveness of their products.
3. Help yourself to open up the market. The seller has a British overseas warehouse in the UK, which makes returns, exchanges and after-sales services more convenient. It is very important to win the trust of customers and help you develop the market.
1. It will cause inventory pressure on sellers
As a logistics warehousing service, the most basic function of overseas warehouses is to store goods. Seller friends are also taking advantage of the convenience of local warehousing areas to improve the efficiency of product delivery. The premise is to return goods at the local warehouse. Therefore, once the seller selects products or has a slightly different understanding of the market, it is easy to cause the goods to be unsalable. The backlog of inventory will lead to an increase in warehousing costs, so sellers should carefully consider when choosing products to stock.
2. Communication costs are high and efficiency is low
This is a common problem with almost all third-party overseas warehouses. Self-operated overseas warehouses are not part of the standard service system like Amazon FBA. Precisely because the services they provide are diverse and flexible, they also cause problems such as difficulty in management. In addition, the language barrier between the two parties and the different working hours will cause some unnecessary troubles. It is recommended that buyers choose an overseas warehouse service provider that also has branches in China, so that communication costs can be minimized.
3. There is considerable financial pressure.
Sluggish goods will inevitably lead to a backlog of products, and the subsequent capital turnover will be a problem. If the products cannot be sold and placed in the warehouse, certain warehousing fees will be charged. These products cannot be cashed in in the short term, and at the same time, they have to pay warehousing management fees. The financial pressure is really not small.
What is the model for UK overseas warehouses? What are the advantages and disadvantages of UK overseas warehouses? UK overseas warehouses play an important role in promoting the efficiency and quality of cross-border e-commerce logistics. If necessary, sellers must research and choose a suitable model in advance. It is very important to choose the right overseas warehouse company. If you are interested, you can consult online.