Models and Considerations for Cross-border Overseas Warehouses
2024.12.18
1. Self-built overseas warehouse
Site selection planning and market research
First, you need to study factors such as the size of the target market, growth trends, consumer demand characteristics, etc. For example, if the main target market is the United States, you need to understand the level of activity in the e-commerce market in different states in the United States. States like California and New York have a huge e-commerce consumer market, with a diverse range of product demands and high expectations for delivery timeliness.
Analyze the local logistics infrastructure situation, including the convenience of transportation networks such as ports, roads, and railways. Being close to major ports and transportation hubs facilitates the rapid entry and exit of goods.
Venue rental or purchase
Based on business planning and budget, decide whether to lease or purchase land and warehouse buildings. Leasing is relatively flexible, requires less initial capital investment, and is suitable for newly established enterprises; purchasing, on the other hand, is more conducive to long-term layout and asset accumulation. When leasing or purchasing, factors to consider include the warehouse's area, layout (such as whether there are suitable zones for storing different types of goods), building quality (including ventilation, moisture-proof conditions, etc.).
Team Building and Operations Management
We need to recruit personnel with overseas warehouse management experience. They should be familiar with warehouse operation processes, including receiving, storing, sorting, packaging, and shipping of goods. For example, they should be able to arrange warehouse space reasonably, plan storage based on factors such as sales frequency and volume of goods, ensuring orderly and easy-to-find storage of goods.
Responsible for inventory management, able to accurately conduct inventory counting, replenishment planning, etc. Utilize inventory management system to monitor inventory levels in real time, avoiding inventory backlog or stockout situations.
Logistics and Distribution
Recruit local logistics and delivery personnel who are familiar with local traffic rules and road conditions to ensure timely and accurate delivery of goods to customers. For example, when forming a delivery team in the United States, consider the delivery personnel's knowledge of the local community environment and their ability to collaborate effectively with local courier services such as UPS and FedEx.
Establish cooperation with local logistics suppliers so that more competitive logistics prices can be obtained when the order volume is large, and also utilize their wider distribution network to improve delivery efficiency.
Procurement and System Construction of Warehouse Equipment
Equipment procurement
According to the business type and scale of the warehouse, purchase necessary storage equipment such as shelves, forklifts, pallets, etc. The selection of shelves should consider the weight, size, and storage method of the goods. For heavy and large mechanical products, heavy-duty shelves are needed; for small items, light-duty shelves or mezzanine shelves can be used to increase space utilization.
Equipped with automated equipment, such as automatic sorting machines, packaging machines, etc., can improve the efficiency of the warehouse. Automatic sorting machines can quickly sort goods to different shipping areas based on order information, and packaging machines can package goods according to the set packaging standards.
System construction
Establish a Warehouse Management System (WMS) to achieve the informatization management of goods in the warehouse. Through WMS, real-time tracking of the goods' entry time, storage location, inventory quantity, and other information can be achieved. For example, when new goods are stored, the system can automatically allocate storage locations and update inventory data.
Integrate the order management system (OMS) with the e-commerce platform to ensure that order information can be transmitted to the overseas warehouse in a timely and accurate manner, achieving automation of order processing. This way, when consumers place orders on the e-commerce platform, the order information can be quickly received by the overseas warehouse, and warehouse staff can proceed with shipping operations.
2. Cooperating with third-party overseas warehouses.
Service provider selection
Qualification and Reputation Assessment
View the qualifications of third-party overseas warehouse service providers, such as business licenses, storage qualifications, etc., to ensure that they are legitimate and compliant enterprises. For example, you can check the service provider's registration information and operating history through the local business registration agency.
Understanding its reputation in the industry can be done by checking customer reviews, consulting with other cross-border e-commerce sellers, etc. Service providers with good reputation usually can provide more stable and reliable services, such as high on-time delivery rates, low rates of lost or damaged goods.
Ability assessment of services
Examine its warehouse facilities, including the area of the warehouse, storage environment (temperature, humidity control, etc.), safety facilities (such as fire prevention, anti-theft systems), etc. For some products with higher requirements for storage environment, such as food, cosmetics, etc., it is necessary to ensure that the warehouse has suitable temperature and humidity control equipment.
Evaluate the coverage and efficiency of its logistics distribution network. Understand whether it can cover your target sales area and whether the timeliness of delivery can meet your business needs. For example, some third-party overseas warehouses can provide same-day or next-day delivery services, which is very helpful in improving customer satisfaction.
The cooperation mode is determined.
Storage Service Agreement
Sign a detailed warehousing service agreement with a third-party overseas warehouse, clarify the rights and obligations of both parties. The agreement includes the calculation method of warehouse rent (whether charged based on area or based on the volume of goods stored), the responsibility for the custody of goods (such as compensation standards for lost or damaged goods), etc.
Determine the storage rules for the goods, such as whether different sellers' goods can be mixed, the stacking method and labeling requirements for the goods, etc. For goods with special storage requirements, the agreement should specify the special services that the service provider should provide.
Value-added service negotiation
Negotiate value-added services such as product quality inspection, customized packaging, labeling, etc. If cross-border e-commerce sellers need to repackage products or apply new brand labels, the charging standards and quality requirements of these services should be clearly defined.
Determine the way and scope of data sharing so that sellers can promptly understand the inventory status of goods and order processing progress. Through data sharing, sellers can better manage inventory and adjust sales plans.
Three, using overseas warehouse services on overseas e-commerce platforms (taking Amazon FBA as an example)
Understand platform rules and requirements
Product access conditions
Different e-commerce platforms have different entry requirements for products. For example, with Amazon FBA, certain products may be restricted, such as dangerous goods, perishable items, etc., which need to meet specific regulations to be stored. Sellers need to carefully study the platform's product classification guidelines and list of prohibited items to ensure their products meet the requirements.
Understanding the packaging and labeling requirements of products. Amazon FBA has strict regulations on the packaging size, material, label format, content, etc. For example, product labels must include scannable barcodes for identifying products and tracking inventory.
Registration and preparation work
Account Registration
Sellers need to register a seller account on e-commerce platforms (such as Amazon) and apply for opening overseas warehouse services (such as FBA services). During the registration process, relevant information of the enterprise or individual needs to be provided, such as business license, tax registration number, bank account information, etc.
After completing the account verification, set up store and product information, including product titles, descriptions, prices, etc., to ensure that the product information is accurate and complete, in order to attract consumers to make purchases.
Goods preparation and shipment
Preprocess the goods according to platform requirements, such as packaging, labeling, etc. Ensure that the goods are securely packaged to withstand impacts and pressures during transportation. When labeling, strictly adhere to the platform's specified position and format for affixing labels.
Send the goods to the overseas warehouse address specified by the platform. During the shipping process, choose a reliable logistics provider to ensure that the goods are safely and promptly delivered to the overseas warehouse. Also, keep a record of the shipment, including the shipping time, quantity of goods, logistics tracking number, and other information for future tracking and inquiries.
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