JCEX Classroom Lesson 4 | What are the overseas warehouse models? What can they provide?

First of all, we need to know that overseas warehouses are the product of cross-border e-commerce. Its model classification can be roughly divided into three types, namely, third-party overseas warehouses, Amazon FBA, and self-operated overseas warehouses.

Amazon FBA refers to the one-stop logistics services provided by Amazon including warehousing, picking and packaging, delivery, collection, customer service and return processing.

At present, in the industry, the logistics level of Amazon FBA warehouses is the benchmark in the overseas warehouse industry. The daily shipment volume, product types, and number of consumers of FBA warehouses far exceed those of third-party overseas warehouses, and the management difficulty is also quite large. , What this brings is the shortcomings of expensive freight and troublesome return. But beyond that, FBA's logistics almost makes sellers impeccable.

Data shows that in 2016, Amazon FBA delivered more than 2 billion products to global sellers, and the number of global active sellers using FBA services increased by more than 70%.

Outside the United States, the number of goods distributed by FBA has increased by more than 80%.

Amazon also provides users with many incentives: for example, helping sellers improve their product rankings on Amazon web pages, making them featured sellers, and so on.

Self-operated overseas warehouses refer to the self-built overseas warehouses by e-commerce companies that are "sellers". As a facility that only provides warehousing and distribution services for their own company products, they are naturally much higher than other overseas warehouses in meeting the needs of sellers. Yes, but the cost of self-operating overseas warehouses is relatively high, and usually only large-scale enterprises will choose to build their own overseas warehouses. It cannot be ignored that the risks are also not small on top of the relatively high cost.

Third-party overseas warehouses are overseas warehouses established and operated by third-party companies (mostly logistics service providers). Such overseas warehouses can usually provide all the one-stop logistics services of FBA warehouses, as well as value-added services such as customs clearance, warehousing quality inspection, label replacement, and one piece distribution. For example, the overseas warehouses of JCEX International will provide a variety of services including customer service, operation, sales, warehouse management (temporary storage, return and exchange, one-piece delivery), parcel consolidation, import agents, overseas distribution and other services.

From the perspective of market size, the number and scale of overseas warehouses in the United States have grown the fastest. The number of overseas warehouses in Britain, Germany, and Japan has nearly doubled compared with 2019. The growth rate of the total area of overseas warehouses in Australia in 2019 has reached that of 2018. 6 times, the rapid growth is surprising, showing that the saturation of the overseas warehouse market in certain regions is far from bottoming.

Obviously, if the direct mail model can solve the problem of cross-border e-commerce logistics services, overseas warehouses are unlikely to rise in general. Export-oriented overseas warehouses solve the problems in the supply chain of merchants. If it can further expand the scope of product selection and improve customs clearance capabilities , Reduce the number of transshipment operations, reduce cargo damage, and improve a series of service products related to buyer customer experience, such as warehouse adjustment and warehousing, return and exchange. It is believed that the development of overseas warehouses will become more and more marketable, becoming second only to the platform type. The new force of overseas warehouses.

As a seller, it is impossible to put eggs in one basket. Under normal circumstances, TOP sellers will use self-operated overseas warehouses, third parties, and platform-based overseas warehouses at the same time. The operation process of overseas warehouses needs to fully consider the adjustment and storage of warehouses. Different from the value-added service process outside the two.

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JCEX Classroom Lesson 4 | What are the overseas warehouse models? What can they provide?

Posted by SHREE SAI PACKER AND MOVERS BANGALORE

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