Amazon has been able to stabilize the position of the head of the cross-border platform for a long time. The most important point is to do local overseas warehouses in various countries. In 2021, the price of most industrial land exceeds that of commercial and residential land. Based on a forecast by real estate services firm CBRE that U.S. e-commerce sales will grow by $330 billion from 2020 to 2025, the U.S. will need to add about 330 million square feet of storage space by 2025.
A generation of hot is an inevitable trend
According to data from the Ministry of Commerce, as of December 2021, the number of overseas warehouses in my country has exceeded 2,000, with a total area of more than 16 million square meters.
Overseas warehouses in the United States are generally concentrated in the east and west regions of the United States. The west of the United States is close to my country, and the lead time is shorter. The east of the United States covers about 70% of the population, and has an inherent advantage in the timeliness of goods delivery. US orders from overseas warehouses are generally dispatched within 1~2 days, not more than four days. Cross-border sellers can compete with local US e-commerce sellers!
At present, there are two main methods for drop shipping from overseas warehouses. One is to ship goods from overseas warehouse suppliers, and the other is that sellers stock up their own goods to overseas warehouses and then ask service providers to help them on behalf of them. Most sellers choose the latter.
The charm of overseas warehouse drop shipping
Warehousing costs are lower
As the world's largest e-commerce platform, Amazon is the best choice for many cross-border sellers. However, the warehousing cost and the processing cost of slow-moving products on the Amazon platform are very expensive. In this case, many sellers have to consider third-party warehousing as a "transit station" to reduce operating costs without affecting Amazon store operations. At this time, overseas Warehouse has become the "best choice" for cross-border sellers.
The goods sold are exported to overseas warehouses, mainly by sea and land transportation in bulk, and the required logistics costs are doubled compared to retail direct mail air transportation.
The disadvantages of self-built warehouses are highlighted
In the past few years, the disadvantage of "self-built warehouses" in the cross-border e-commerce industry has gradually become prominent.
According to the survey, 63% of sellers are troubled by local policies and regulations, and 56% of sellers are troubled by overseas recruitment and management. Another 30% of sellers are worried about policy and tax risks; 30% of sellers are worried about the risk of unsalable goods, and they also face risks such as financial pressure, goods safety, and poor management.
Complete chain
Overseas warehouses are not simply renting a warehouse, but a window to display brand, after-sales, consulting and even maintenance services.
At present, the overseas warehouse service provided by mainstream platforms is to provide sellers with one-stop services for warehousing, sorting, packaging, delivery and other items. Combined with the local logistics characteristics of foreign warehouses, it can ensure that the goods arrive at the terminal safely, accurately, timely and at low cost. in the hands of the buyer.
At present, retail direct mail is generally carried by air, which greatly limits the type and volume of goods. If the goods are shipped to overseas warehouses in bulk, large and fragile goods can also be traded through cross-border e-commerce. Compared with the era of postal parcels, overseas warehouses are more formalized and comprehensive.
