Overseas or Local Warehouse? It Makes a Difference!

Even under the stress of the COVID-19 pandemic, being the world’s factory, China remains the world’s largest manufacturer, and its foreign trade hits a new high exceeding $6 trillion for the first time in 2021 [1]. Correspondingly, China’s logistics and warehousing industry have been thriving as well, with the logistics performance index (an indicator for the business volume, new orders, employment, inventory turnovers and equipment utility rates in the sector) reaching 49.3% by May 2022, according to the data released by the China Federation of Logistics [2]. The position of China’s logistics in global shipping logistics is beyond doubt. While many e-commerce practitioners rest assured in choosing China’s logistics, some are unsure about China’s warehousing and storage, wondering if it is trustworthy as well, and struggling between two seemingly equally tempting options: overseas warehouses and local ones. What are their differences? Where exactly should I store my goods for the best? How do we maximize the profitability and minimize the cost?

If you are one of them, this article will answer your question by sharing some facts about China’s local warehouse, which set it apart from its overseas counterparts and, hopefully, help you reach the ultimate decision.

4 Merits of China’s Local Warehouse

Exemplified by Yun Fulfillment Warehouse, most of China’s local warehouses earn the trust of e-commerce practitioners with 4 merits, respectively: high integrity, price competitiveness, extensive coverage, and loss reduction. More details will be given to specify each point in the following part.  

• High integrity

No one wants to coordinate simultaneously dozens of suppliers, each of who only carries out one particular task, from storage, pick and pack service, quality inspection, stock control to actual logistics. Once anything goes wrong, the more parties involved in a task, the larger room there is for miscommunication, incoordination and buck-passing.

Why must you trouble yourself with these unnecessary communications and coordination when you can find a partner that covers them all up for you? With storage, pick and pack service, appearance quality inspection, inventory management and logistics all integrated into one service chain, Yun Fulfillment offers its clients a one-stop solution. To sweeten the deal, Yun Fulfillment allows them to choose their packing materials to their needs and covers the packing fee.

• Price competitiveness

Even if you do not get yourself burnout working with multiple suppliers, your budgets will surely do, given the fact you have to pay them separately. Once again, Yun Fulfillment’s local warehouse frees you from the lengthy calculation, with one and only one quote that covers everything and even supports customization.

Still, some may wonder if that one quotation is higher than all those services combined. Yun Fulfillment has always been answering its customers with the best services at a reasonable price. Located in China, where abundant labor resources are available yet rents are low, China’s local warehouses have no trouble controlling the labor and head transport cost.

• Extensive coverage

Another merit of China’s local warehouse is the global delivery covering 200 countries worldwide. Once the order is placed, dispatch will be done within 24 hours with relevant logistics information updated online in real time, and your package is on the way to all the corners of the globe. Therefore, storing your goods in China’s local warehouse means you can reformulate your sales strategies and send the goods anywhere, anytime. However, this is less likely if you store the goods in a warehouse in your destination country, where you have to put up with the costly rents and limit your targeted customers to local consumers.

• Loss reduction

Regarding the losses generated from reformulating your marketing plan, China’s local warehouse cut your loss significantly. Just imagine storing your goods in an overseas warehouse. Once your products are not sold ideally in your initial target market, forcing you to send your goods elsewhere, here comes the nightmare. Not only must you pay the logistics fee once again, but you also lose the taxes and fees you already paid when doing the customs clearance. Ouch!

Conclusion

Thanks to ever-developing e-commerce, more options are now available in global shipping logistics. Yet, more options can lead to just as many challenges and risks as opportunities and favors. For example, choosing a suitable warehouse to store your goods is just as tricky as any other issue for online retailers of the third marketplace, as it determines both your cost and your customers’ shopping experience. With all the merits concluded above, China’s local warehouses benefit the e-commerce practitioners in many ways. Represented by Yun Fulfillment Warehouse, China’s local warehouses are doubtlessly recommendable.

References:

[1] China’s foreign trade hits new high in 2021. Available at: http://english.www.gov.cn/archive/statistics/202201/14/content_WS61e11577c6d09c94e48a3a0a.html (Accessed: 17 June, 2022)

[2] China’s logistics sector on the mend under govt support. Available at: http://english.www.gov.cn/news/topnews/202206/12/content_WS62a59fa5c6d02e533532c0b8.html (Accessed: 20 June, 2022)