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Cross-border E-commerce encounters logistics pain points

Time:2018-08-07Posted:BR1 express 巴通供应链
For China's cross-border e-commerce, this spring is full of life.
On March 5th, in the “Government Work Report” of Premier Li Keqiang of the State Council, “cross-border e-commerce” was put forward as the focus of government work. At the same time, the “overseas warehouse” was also mentioned: “To encourage business model innovation We will expand cross-border e-commerce pilots and support enterprises in building a number of 'overseas warehouses' for export products and promote the development of foreign trade comprehensive service companies."
At the beginning of this year, the “Thirteenth Five-Year Plan for Foreign Trade Development” issued by the Ministry of Commerce also clearly stated that the promotion of healthy and rapid development of cross-border e-commerce. Promote the construction of a comprehensive pilot zone for cross-border e-commerce. Encourage the establishment of overseas warehousing and promote the innovation and development of B2B business.
On March 2nd, similar requirements such as "innovation of overseas consumer service trade development" and "building a new service trade promotion and trading platform" reappeared in the "13th Five-Year Plan for Development of Service Trade" issued by 13 departments such as the Ministry of Commerce. in.
What is "overseas warehouse"? For cross-border e-commerce, what are the dividends from “overseas positions”? And how do e-commerce companies that develop cross-border e-commerce rely on “overseas warehouses” as a basis for further development?
Cross-border establishment
Li Wei has been in the foreign trade clothing business in Beijing for seven years. In recent years, the vigorous development of overseas cross-border e-commerce has brought good returns to his foreign trade companies, but whenever he refers to “logistics,” he often has headaches to send goods from Beijing to the rest of the world almost every day.
Li Wei told the Economic Observer newspaper that overseas logistics takes a long time and costs are high. At the same time, the transparency of the international logistics market is very low and disputes are likely to arise. Although domestic products do not lack "selling points," logistics has become a major "pain point" for the foreign trade industry.
In recent years, as Chinese manufacturing companies have actively “goed out”, “Made in China” products have also been welcomed by many countries. At the same time, according to Haitao’s product category report, domestic consumers’ demand for overseas maternal and child products, cosmetics, luxury goods, and luggage is also expanding. For all buyers at home and abroad, access to affordable supplies, convenient and efficient logistics, and symmetrical and transparent information are key.
At this time, the “overseas warehouse” that was dedicated to reducing logistics costs, improving distribution efficiency, and providing one-stop solutions came into being.
"Overseas warehouse" is not only simple to store goods in bulk outside the country. According to the Economic Observer, the director of the Shanghai Overseas Business Division of Longchuan, Shanghai, has established overseas warehouses in other countries and is generally used in e-commerce. Goods are exported from domestic exports to the country's warehouses through shipping, freight, and air freight. Buyers purchase orders through online orders. Sellers only need to operate on the Internet and issue orders to overseas warehouses to fulfill orders. Goods are sent from the country where the buyer is located, effectively reducing the time required to ship logistics from home.
At present, overseas direct mail is the mainstream model for cross-border small and medium-sized electricity providers. "Overseas warehouse" as the overseas direct mail collection and transit warehouse is becoming the "just needed" of the vast majority of imported electricity suppliers. Whether it is the diversified shopping needs of consumers, or the guarantee of the circulation of goods through direct mail overseas, and the deepening preference of consumers for direct mail, it reveals the importance of “overseas positions” in the development of cross-border e-commerce.
To build your own “overseas warehouse” by self-building, investment, or cooperation is a plan that the seller has already or is considering. A survey report on “Overseas Warehouse” shows that through three rounds of research on a total of 150 sellers in 2016, it was concluded that sellers would be dissatisfied with personalized services, are not satisfied with third-party services, and want to reduce overall costs. And other product reasons to build "overseas warehouse." Among them, personalized service is the primary reason for big sellers to build “overseas warehouses”, accounting for 31% of the four factors.
The survey results show that the United States is currently the largest market for cross-border e-commerce in China. Eighty-one percent of the self-built "overseas warehouse" sellers have warehouses in the United States, 50% have warehouses in Germany, and 37% have warehouses in the United Kingdom.
Layout "Overseas warehouse"
Shanghai Xinchuan built Brazilian overseas warehouses in Sao Paulo, Brazil. The risks and costs of self-building warehouses are high. The customs, legal affairs and taxation issues involved are also cumbersome. In addition, if the sales volume does not reach the freight discount, there is no scale advantage. It is difficult to get good delivery prices in the local area. "The current third-party warehousing charges are very cheap, the profit margin is decreasing, and the advantages for self-building warehouses are reduced.
Mr. Li is the general manager of a private enterprise in Jiangsu. The company exports cameras and other components to the United States. He told the Economic Observer newspaper that the company originally planned to establish a self-built warehouse in the United States last year. However, after investigation and research, it was found that the total volume of the sunrise was less than 1000 pieces, and the cost of self-building warehouses was higher than expected. In addition, related to the local laws and regulations and staff recruitment issues, but also made Mr. Lee quite a headache, and ultimately gave up the intention of self-building positions, chose an "overseas warehouse" third-party platform.
For future e-commerce overseas e-commerce's "overseas warehouse" trend, Chen Huahui's point of view is that in the future, big sellers will choose custom warehouses, super-large sellers will deploy overseas self-built positions, and most small and medium sellers will choose third-party overseas warehouses.
Founding Steel Network, which was born in 2012, is a trading platform based on the cooperation of steel trading as its main operating model. The company currently has branch offices in South Korea, Vietnam, and Dubai, and develops and collaborates with local companies to develop an "overseas warehouse" internet platform. In addition to continuing information services in the past vertical industries, it also includes warehousing, logistics, processing, finance, etc. Productive service. Yao Jinhe, general manager of Zhansteel.com, told us that at present, Zhansteel.com has placed its platform resources in local cooperative warehouses and conducted unified management.
Yao Jinhe introduced to the Economic Observer News that while looking for steel nets to help steel companies sell, they also paid attention to transportation and warehousing, that is, “one-stop” service. This means that domestic steel companies that are not familiar with the overseas environment do not need to put in manpower to manage warehousing and logistics overseas. They only need to consider the rationality of the local inventory and sales price according to the real-time quotation of the platform and sell it.
According to the relevant person in charge of overseas warehouses interviewed by the Economic Observer newspaper, most employees of the “overseas warehouse” are local people. For foreign teams and domestic teams, completely different management tools and management ideas should be adopted. Yao Jinhe analyzed that “overseas warehouse” is established in the local area. All local branch employees are local people and can be better.
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