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What is the use of overseas warehousing for cross-border e-commerce logistics?

Overseas warehouses built in other countries are generally used for e-commerce transactions and cross-border e-commerce logistics warehousing. Goods are exported from the country and stored in warehouses in the destination country by sea, land and air. Buyers can directly place an order online to buy their favorite products. No matter where the seller is, as long as the platform operation instructions are used, the country where the buyer is located can complete the order picking and delivery. With overseas warehouses, the goods are shipped directly from the buyer's country, which shortens the time for cross-border logistics from the country.

For many cross-border e-commerce sellers, Amazon FBA is a common logistics method. Generally speaking, only larger companies have the strength to build their own overseas warehouses, because the rent is relatively expensive, and small companies cannot afford this part of the cost. For large companies with large volumes, this can facilitate their own delivery speed, centralize product management, and save delivery time, which is a very good aspect.


Functions of overseas warehousing


Functions of overseas warehousing:

(1) Bonded function

After the overseas warehouse is approved by the customs as a bonded warehouse, it has a wider range of functions and uses, which can simplify the customs declaration process and related procedures. At the same time, export trade can be carried out in bonded warehouses, and overseas warehouses are located in third countries. By connecting seller and buyer countries, trade sanctions can be effectively avoided. Bonded overseas warehouses can provide value-added services such as simple processing, effectively enrich the functions of warehouses, and improve competitiveness.

(2) Reduce shipping costs

Overseas warehousing can provide corresponding delivery services for cross-border e-commerce, and express delivery in the destination country is much cheaper than domestic express delivery. With the development of cross-border e-commerce in recent years, if overseas warehouses still face problems such as rising warehouse operating costs and labor costs.


Amazon FBA transit function


(3) Amazon FBA transit function

First send the goods to the overseas warehouse by air or sea, and then if the warehouse allows, it is necessary to affix the FBA label to the overseas warehouse and send the goods to FBA to reduce the risk of some delays.

(4) Amazon FBA returns and other functions

A single overseas warehouse is easy to replace, operating costs increase, and profit margins are compressed, which directly affects the development of the enterprise. It is necessary to change from the traditional agency thinking mode to a multi-functional logistics transfer center.

(5) Integration of transportation resources

Due to relatively few B2C orders in international trade, the upstream supply resources of domestic warehouses and the downstream supply resources of foreign warehouses are well integrated. In order to meet the timely transportation requirements of international logistics, the domestic warehouse is the end point of the combined transport, and the foreign warehouse is the starting point of the combined transport. Realize the effective integration of transportation resources, achieve transportation scale effect, and reduce transportation costs.

Remarks: The above content is only an internal opinion and is for reference only.

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