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The difference & summary of virtual/physical overseas warehouses

Date:Jun 22,2020

Along with the development and maturity of cross-border e-commerce platforms, cross-border e-commerce sellers have sprung up everywhere, and various problems of cross-border e-commerce logistics have prompted overseas warehouses to become a good medicine to rescue logistics defects. However, not all sellers are suitable for overseas warehouses. If there are many types of SKUs, seasonal products, and the continuation of the explosions are unknown, then it is not necessarily a huge risk to stock up to overseas warehouses.

Advantages of overseas warehouses

The location of the item is overseas, and it is easy to become an overseas seller, increasing product exposure.

2) Increase the selling price of goods and achieve competitive local sales.

3) Improve the timeliness of logistics distribution. (can meet the requirements of the 5 days of the platform)

4) Ship the goods overseas in batches to reduce logistics costs.

5) Fast return and exchange processing to improve customer satisfaction.

 

Disadvantages of overseas warehouses

1) Need to stock up, have inventory risks and increase capital cycle cost

2) It is not convenient to operate multiple SKUs at the same time

3) Increase inventory storage costs and operating costs

4) Changes in overseas national policies will cause certain losses and troubles

Virtual overseas warehouse

The virtual overseas warehouse is a mode of direct domestic shipment and overseas warehouse delivery. The operation mode is: when the platform generates the order, the system will be in the back of the transportation form, and after packaging, it will be packaged through various channels. Send to the overseas warehouse and then unboxing the distribution mode.

1) It is possible to control the timeliness of the entire process according to the timeliness requirements of the platform.

2) Display local shipment

3) Can return and exchange goods in overseas warehouses to solve the problem of malicious return

4) No need to stock up, no inventory risk, no financial pressure

5) Modes that comply with multiple SKU operations

6) No storage costs

7) Respond to changes in foreign policies and operate flexibly

First, not all products are suitable for overseas warehouses: large, heavy, or very popular, these are the first choice for overseas warehouses.

Second, in case the goods are not sold well, there is a crisis of stockpiling, and the cost of the warehouse to generate the rent will be very high. The overseas warehouse is not free of warehouse rent, and there is no free lunch in the world.

Third, cross-border e-commerce needs to be localized. It is not necessary to choose a real overseas warehouse to go overseas. As long as you choose a fast-responsible channel, you can do it.

Fourth, the shipping address of the virtual overseas warehouse is foreign, and the customer return can still be returned to the overseas warehouse address.

Fifth, no matter how many SKUs you have, you don't have to worry about the troubles of dumping goods to overseas warehouses.

Use overseas warehouse fee = head-to-head fee + storage and handling fee + local distribution fee

a. Head cost: freight generated from the warehouse of China to overseas

b. Warehousing and handling fees: the cost of the customer's goods stored in overseas warehouses and handling local distribution

c. Local delivery fee: refers to the local courier fee generated by the delivery of customer goods in the United States.

Expenses for using virtual overseas warehouses = head-to-head fee + order processing fee + local delivery fee

a. Head cost: freight generated from the warehouse of China to overseas

b. Order processing fee: system order processing fee

c. Local delivery fee: refers to the local courier fee generated by distributing the customer's goods overseas.

TypeInfo: Engineering Case

Keywords for the information:overseas warehouses 

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