What is an overseas warehouse?
“Overseas warehouse” means a storage facility established overseas. That is, the seller will first batch of goods will be prepared at the overseas warehouse closer to the consumer after the consumer placed an order, directly from the overseas warehouse and sent to the hands of consumers. Overseas warehouses belong to the mode of advanced stocking model.
The “overseas warehouse model” refers to domestic enterprises transporting goods to target market countries in bulk, storing them in local warehouses, and then picking, packing, distributing, and returning them directly from the warehouses after local sales orders are generated.
Since the outbreak of the overseas epidemic in 2020, a large number of overseas offline retail markets have been closed, consumers have shifted to online shopping and consumption under the “home economy”, the demand for cross-border e-commerce stockpiling has soared, FBA storage capacity is seriously insufficient, and non-Amazon platforms such as eBay, and Shopify have also ushered in a high-speed exhibition, coupled with the unstable timeliness of direct shipping mode under the epidemic. Stability, so that the third-party overseas warehouse ushered in a wave of “burst tide”, the entire overseas storage industry has been rapidly expanding.
In addition to the players who have entered the game to expand their warehouses, various large and small overseas warehouses have sprung up to meet this wave of market dividends. According to the data of the Ministry of Commerce, the number of overseas warehouses in China just exceeded 1,000 in 2019, and exceeded 1,800 in 2020, with a growth rate of 80% and a total area of 12 million ㎡; the number of overseas warehouses exceeded 2,000 in 2021, and the total area exceeded 16 million ㎡.
The reason why overseas warehouses can develop rapidly
It is because compared with direct shipping, overseas warehouse shipping can achieve faster timeliness and more stable delivery service. Local shipments can reach buyers in 1-3 days, and there is no risk of uncertainty in the first journey. Especially in the “home” environment and mentality, can significantly improve the logistics experience of consumers; Secondly, under the premise of controlling the amount of stock can greatly reduce logistics costs, especially for heavy sellers, overseas warehouse mode is undoubtedly the optimal solution for stocking.
The inevitable defects of overseas warehouse
- Advance stocking will take up funds for a certain period of time, such as sellers appearing to be too optimistic about market forecasts, deviations in product selection, backlog, and stagnant sales, etc., in the long-term bear warehouse rental costs at the same time, may affect business capital turnover.
- The explosion of the overseas warehouse market makes a large number of cross-border players see the huge demand and space for overseas warehouses. A large number of players are optimistic about the market forecast and enter the market without industry experience, giving birth to the situation of wild growth of overseas warehouses in 2020.
The future development trend of overseas warehouse
As the market calms down, the supply of overseas warehouses exceeds the demand, some enterprises are forced to withdraw from the stage, the industry is reshuffled, and the new brand owners and sellers with integrated industry and trade put forward higher quality, more stable and more compliant requirements for logistics, which require overseas warehouse service providers to continuously improve the comprehensive strength of internal and external work, keep their own evolution, open up more categories of business, and create more personalized solutions with customer-centered supply chain full-chain synergy, which is the moat of overseas warehouse service.
The overseas warehouse is not only a warehouse but also an extremely high-threshold supply chain system. Intelligence, refinement, integration, and informatization are the main themes of overseas warehouse development in the future, and the leading service provider of overseas warehouses committed to providing “end-to-end Rui” service, which is more stable, safer and more compliant, will become a scarce resource in the industry. If you want to operate an overseas warehouse well for a long time, you need strong financial strength, rich experience in site selection, refined management in the warehouse, formation of the overseas team, localized operation ability, smooth information system, and other elements.
Veeddy dropshipping has a number of experienced and mature overseas warehouses if you have a need welcome to contact us.
