Overseas warehouses facilitate efficient distribution of products sold on cross-border e-commerce

Overseas warehouses have become a game-changer for numerous cross-border e-commerce businesses and companies, thanks to their unique advantages.

According to data from China's Ministry of Commerce, China has more than 120,000 cross-border e-commerce entities, over 1,000 cross-border e-commerce industrial parks, and over 2,500 overseas warehouses covering a total area of over 30 million square meters.

Among these, there are over 1,800 specialized overseas warehouses catering specifically to the needs of cross-border e-commerce, covering an area of 22 million square meters.

As support facilities for cross-border e-commerce, overseas warehouses, self-built or leased, utilize digital and intelligent storage systems to house products from all corners of the world. They provide localized services such as warehousing and distribution, ensuring a steady influx of orders for cross-border sellers.

Shortening logistic times

Bright and early in a Los Angeles-based overseas warehouse owned by Miracle Miles, a Chinese footwear and clothing enterprise, workers were picking, handling, scanning, weighing, and packaging footwear from China based on order information, swiftly loading them onto trucks for delivery.

Photo shows the warehouse of Miracle Miles, a Chinese footwear and clothing enterprise, in Los Angeles, the U.S. (Photo courtesy of the interviewee)

"Our overseas warehouse integrates various functions, including storage, logistics, and after-sales support. It not only facilitates convenient receipt of goods for international customers but also enhances the overall shopping experience for consumers," said Ma Ning, director of public relations at Miracle Miles.

Traditional cross-border logistics involves lengthy procedures such as customs declaration and clearance, which can cause delays for domestic sellers in delivering goods to overseas buyers through international logistics.

"By shipping from overseas warehouses, customers can receive their orders within one to three days, greatly improving logistics efficiency. Additionally, the centralized storage and unified distribution of overseas warehouses also lower transportation costs, providing businesses with greater profit margins," explained Ma.

According to Li Peng, vice president of the international arm of Chinese express delivery company ZTO Express, it used to take around 15 to 25 days to ship goods from China to Africa. However, with the overseas warehouses, African consumers can now receive their orders within two to three days.

Digital empowerment

Today, the functions of overseas warehouses continue to evolve and upgrade. At the Shanghai headquarters of ZTO Express, several large screens display real-time footage from overseas warehouses.

The screens provide information on how much stock remains in the warehouse, how much is being shipped out daily, and much more information provided in real-time on the company's overseas warehouses.

"There is a high demand for returns and exchanges. Returning goods from overseas to China can be very costly, but handling returns and exchanges directly in the overseas warehouse provides a good experience for end-buyers," said Li.

In the recently jointly issued "Guidelines on Expanding Cross-Border E-commerce Exports and Promoting the Construction of Overseas Warehouses" by the Ministry of Commerce, the National Development and Reform Commission, and eight other departments, cross-border e-commerce and overseas warehouse companies are encouraged to legally and in compliance with regulations utilize data to empower upstream and downstream industries, enhancing the flexible supply capabilities of production enterprises.

"Through the application of digital business systems, we can more accurately grasp changes in market demand, optimize inventory management, and improve the responsiveness of the supply chain," said Ma.

He believes that, in terms of the market, by establishing a comprehensive data analysis system, companies can leverage big data and artificial intelligence technologies to analyze consumer behavior, market trends, and other information, providing customized and flexible supply chain solutions for cross-border operations.

Additionally, companies can establish close cooperative relationships with upstream and downstream enterprises, sharing data resources and jointly promoting the coordinated development of the industrial chain.