Exploring the Functions of Overseas Warehouses and Their Operational Dynamics

Home > Details

FBA LCL Quote

ONT6
$140
30 Workdays
SNA4
$129
30 Workdays
PHX3
$129
30 Workdays
Get real-time quotes

FBA 40HQ FCL Quote

PHX3
$6,838
22-30 Days
ONT6
$6,838
22-30 Days
SNA4
$6,838
22-30 Days
Get real-time quotes

"The existence of overseas warehouses has brought great convenience to cross-border e-commerce logistics. More and more cross-border trade is gradually inseparable from overseas warehouses. So, do you know what the functions of overseas warehouses are? , how do overseas warehouses generally operate?

1. What is the Function of Overseas Warehouse?

The functions of overseas warehouses are as follows:

1) Delivery function: Overseas warehouses can provide delivery services for cross-border e-commerce sellers. Express delivery in the destination country will be much cheaper than domestic express delivery. However, with the continuous development of cross-border e-commerce in recent years, if it is still Based on the original business model of small parcel delivery, overseas warehouses will face rising warehouse operating costs and labor costs. At the same time, warehousing automation, FBA competition and Amazon’s last-mile layout will have a negative impact on the development of enterprises. Wait for a bigger impact.

2) FBA returns and exchanges, etc.: Overseas warehouses with single functions can easily be replaced. In addition, operating costs continue to grow and profit margins continue to be diluted, which directly affects the development of enterprises. It is necessary to evolve from the original drop shipping idea to a multi-functional logistics transfer center. Auto Shipping provides one-stop overseas warehousing services, including FBA returns and exchanges, transfers, reprinting or labeling, FBA product testing, cartoning, payment of customs duties, insurance, etc.

3) Bonded function: When an overseas warehouse is approved by the customs to become a bonded warehouse, its functions and uses are broader, and it can simplify customs clearance processes and related procedures. At the same time, re-export trade can be carried out in bonded warehouses, using the location of the overseas warehouse as a third country to connect the seller and buyer countries. This method can effectively avoid trade sanctions. In bonded overseas warehouses, simple processing and other corresponding value-added services can also be performed, which can effectively enrich warehouse functions and enhance competitiveness.

4) FBA transfer function: first send the goods to the overseas warehouse in the destination country by air or sea, and then, if the warehouse capacity allows, require the overseas warehouse to affix the FBA label and send it to FBA by local express, so as to reduce some links risk of delay.

5) Transportation resource integration function: Overseas warehouse system providers feel that due to the relatively small number and high frequency of international trade B2C orders, in order to better integrate the upstream supplier resources of domestic warehouses and the downstream customer resources of foreign warehouses , to meet the high-time delivery requirements of logistics, using domestic warehouses as the end point of joint distribution and overseas warehouses as the starting point of joint distribution, to achieve effective integration of transportation resources, achieve scale effects of transportation, and reduce distribution costs.

Click here learn more amazon fba warehouse location:
https://globalshippingauto.com/amazon-warehouse-locations-usa
https://globalshippingauto.com/amazon-warehouse-locations-canada
https://globalshippingauto.com/amazon-warehouse-locations-mexico

2. How do Overseas Warehouses Generally Operate?

Overseas warehousing services refer to one-stop control and management services for cross-border e-commerce sellers to store, sort, pack and deliver goods in the country of sales destination. To be precise, overseas warehousing generally includes three parts: first-leg transportation, warehousing management, and last-leg transportation (local distribution). The specific operating procedures for overseas warehouses are as follows:

1) First-leg transportation: Cross-border e-commerce sellers transport goods to Auto’s overseas warehouse in the destination country through other methods such as sea transportation, air transportation, land transportation or small parcels.

2) Warehousing management: Sellers use the logistics information system to remotely operate overseas warehouse goods and manage inventory in real time.

3) Last-mile transportation (local delivery): Based on the order information, the overseas warehousing center delivers the goods to the customer through local post or express delivery.

If cross-border e-commerce sellers choose our Auto overseas warehousing service, they must make full use of its various functions to make their cross-border e-commerce more cost-effective, worry-free, time-saving and labor-saving.

3. What are the Advantages and Disadvantages of using Overseas Warehouses?

Advantage

1. Low cost increases profit margins: Take Nacheng International Logistics’ overseas warehouses in the United States and Russia as examples. The overseas warehouses in the United States provide a 30-day free warehousing discount, and the Russian overseas warehouse provides a 90-day free warehousing discount.

2. Personalized packaging: Sellers can flexibly choose packaging that suits their products, reducing the damage rate of subsequent deliveries and reducing the return and exchange ratio.

3. Flexible return and exchange processing: Overseas warehouses provide return and exchange services for goods.

Shortcoming

1. Enterprises that have just entered the e-commerce field should not choose overseas warehouses when the shipment batch is small and orders cannot be formed quickly during the market exploration stage. Although Amazon FBA compresses profit margins, it can help sellers increase product exposure. Once the products are recognized by the market, they will consider increasing profits.

2. Amazon Prime members can enjoy free 2-day delivery in the United States. Overseas warehouses currently cannot guarantee 2-day delivery within the United States, and will need to charge a certain delivery fee.

3. Not all products are suitable for "overseas warehouses". Generally speaking, the products suitable for "overseas warehouses" mainly include:

(1) Products with large size and weight: Since the specifications of these products in small packages and dedicated line mail will be limited, and international express delivery is very expensive, using overseas warehouses will break through the product specification restrictions and reduce logistics costs.

(2) Products with high unit price and gross profit: This is because high-quality overseas warehouse service providers can control the damage rate and loss rate to a very low level, reducing risks for sellers selling high-value goods.

(3) High cargo turnover rate: what we often call best-selling products. For best-selling products, buyers can process orders more quickly through overseas warehouses and withdraw funds; for slow-moving products, corresponding warehousing fees will be incurred while occupying funds. Therefore, in comparison, overseas warehouses are more suitable for products with high turnover rates. "

Conclusion

Selecting a reliable freight forwarding company is crucial for cross-border e-commerce sellers, as it directly impacts the efficiency and safety of product transportation. A high-quality freight forwarder can ensure goods are delivered quickly and safely across the globe, while also helping sellers minimize costs and avoid potential logistical issues. The value protection service provided by Auto Shipping ensures that in the event of any loss or damage during transport, the freight forwarding company will offer compensation, thereby reducing the risk for the seller. 

Related Articles
2024-05-30
Choosing a Freight Forwarder
What is freight forwarding?Freight forwarding is a service used by companies that deal in international or multi-national import and export. Essentially, freight forwarders are intermediaries between the company that makes the goods and the ultimate destination for those goods. They handle the logistics of transporting goods from one destination to another, managing the details and paperwork involved in transporting goods across international borders. This includes arranging for storage, handling customs clearance, and selecting the best modes of transportation (air, sea, rail, etc.) to optimize time, cost, and reliability.Freight forwarding services1.Transportation: Coordinating different modes of transport (air, sea, rail, truck) to optimize cost, efficiency, and reliability.2. Warehousing: Arranging storage solutions before and after transit.3. Customs Clearance: Handling necessary paperwork and procedures to meet regulatory requirements in different countries.4. Cargo Insurance: Offering options to protect goods against loss or damage during transport.5. Packing and Inventory Management: Ensuring goods are properly packed for transport and managing inventory before and after shipping.Do I need a freight forwarder?Whether you need a freight forwarder depends on several factors related to your business's shipping needs:1. Volume and Frequency of Shipments: If you regularly ship large volumes or your shipments are frequent and complex, a freight forwarder can help streamline your operations.2. International Shipping: Navigating the complexities of customs, tariffs, and international shipping regulations can be challenging. Freight forwarders specialize in this and can manage these processes for you.3. Resource Allocation: If your business lacks the internal resources or expertise to manage logistics efficiently, a freight forwarder can provide significant value.4. Multi-Modal Transportation Needs: If your shipments require multiple modes of transport (air, sea, road, rail), a freight forwarder can coordinate these logistics seamlessly.What is a customs broker?A customs broker is a professional who is licensed to act as an agent for importers and exporters. They facilitate the clearance of goods through customs by ensuring that all legal requirements, documentation, and duties are properly handled. Customs brokers are knowledgeable about the entry procedures, admissible requirements, classification, valuation, and the rates of duty and applicable taxes and fees for imported merchandise. They play a crucial role in international trade, helping businesses comply with complex regulations and avoid costly delays.Freight Forwarder vs Customs BrokerFreight forwarders and customs brokers play distinct but complementary roles in international trade:1. Freight Forwarder: A freight forwarder arranges the transportation of goods across international borders. They handle logistics like booking cargo space, warehouse storage, cargo consolidation, and ensuring that the appropriate shipping method is used. They are essentially the architects of the entire shipment process from origin to destination.2. Customs Broker: A customs broker is specifically involved in the process of getting goods cleared through customs. They prepare and submit documentation required to facilitate exports or imports into the country, adhere to regulatory and legal requirements, and communicate directly with customs authorities. They ensure that all duties and taxes are paid and that the goods comply with all regulations.While a freight forwarder may sometimes act as a customs broker, and vice versa, their primary functions differ significantly, focusing on logistics and regulatory compliance, respectively.International Freight Forwarding CompaniesInternational freight forwarding companies specialize in arranging the transportation and logistics of goods across borders. They offer a range of services including cargo booking, warehousing, cargo consolidation, shipping, customs clearance, and tracking. These companies often have a global network that enables them to handle the complexities of international shipping effectively. Well-known international freight forwarders include DHL Global Forwarding, Kuehne + Nagel, DB Schenker, Panalpina and Auto Shipping. These companies are recognized for their ability to manage and streamline the supply chains of their clients globally.Are you Looking for a Great Price?If you're asking about finding the best prices for services or products, it generally involves comparison shopping and leveraging any available discounts or promotions. For services like freight forwarding or customs brokerage, getting quotes from multiple providers and negotiating terms can lead to better prices. Let me know if you need tips on how to compare prices effectively or if you have a specific product or service in mind! Click here to check our freight quote:https://globalshippingauto.com/fcl-shipping-from-china
2024-06-04
Understanding CBM: A Guide to Calculating Cargo Volume for Cross-Border Air and Sea Transportation
What is CBM?CBM, an abbreviation for cubic meter (m³), serves as the standard unit of measurement for calculating the volume of cargo in logistics, specifically in cross-border air and sea transportation. Understanding and accurately calculating CBM is essential for efficient shipment planning, proper utilization of transport vehicles and storage facilities, and cost management.Significance of CBM in TransportationCBM plays a crucial role in both air and sea transportation by determining the space a shipment occupies. This volumetric measure is universally used for calculating storage and freight charges globally, and is equally significant for air freight, sea freight, and even truck and van transportation. In air transportation, airlines calculate freight costs based on the larger value between the volumetric weight and the actual weight of the goods. This system ensures that bulky yet lightweight shipments are charged fairly compared to dense items. Sea freight pricing primarily focuses on shipment size rather than weight, as sea vessels are equipped to handle large volumes of cargo.Calculating CBMThe calculation of CBM follows a straightforward formula. For regular-shaped cargo, measure the length, width, and height of the item in meters and multiply these dimensions:\[ \text{Length (m)} \times \text{Width (m)} \times \text{Height (m)} = \text{CBM (m³)} \]For multiple identical items, this formula can be multiplied by the total number of items. If the shipment includes items of various sizes, repeat the calculation for each item and sum the resulting volumes.Shipments with irregular shapes require a different approach. Measure the longest length, width, and height to account for the entire space occupied by the item. Use the following adjusted formula for irregular shapes:\[ \text{Longest Length (m)} \times \text{Longest Width (m)} \times \text{Longest Height (m)} = \text{CBM (m³)} \]For cylindrical items, calculate the CBM using the radius and height with the formula:\[ \pi \times \text{Height (m)} \times (\text{Radius (m)})^2 \]where \(\pi \approx 3.14\).Impact on Freight ChargesCarriers use CBM to determine the chargeable weight of a shipment. Different modes of transport convert 1 CBM into varying weight values:Air freight: 1 CBM = 167 kgRoad freight: 1 CBM = 333 kgSea freight: 1 CBM = 1,000 kgDimensional Weight (DIM Weight)**: This metric is essential for lightweight shipments that occupy significant space. For example, a pallet of cotton versus a pallet of metal would be billed differently despite their identical volume due to their weight difference. Carriers determine the chargeable weight based on the greater value between the DIM weight and the gross weight.CBM in Container ShippingChoosing the right container size based on CBM calculations optimizes freight costs and handling efficiency. The average CBM capacities for commonly used containers are:20' container: 26-28 CBM (maximum 33 CBM)40' container: 56-58 CBM (maximum 66 CBM)40' high cube: 60-68 CBM (maximum 72 CBM)45' high cube: 72-78 CBM (maximum 86 CBM)ConclusionUnderstanding CBM and how to calculate it is integral to the logistics and transportation industries. By making informed decisions based on CBM measurements, logistics professionals can optimize cargo loading, manage shipping costs, and ensure compliance with global standards. The proper calculation and application of CBM ensure efficient operation of cross-border air and sea transportation.
2024-11-26
Important Points to Note During FBA Full Container Loading
When preparing for FBA (Fulfilled by Amazon) full container loading, it's crucial to follow these key steps to ensure the safety of your goods and smooth delivery to Amazon warehouses. By adhering to these guidelines, you can minimize risks, streamline the process, and ensure compliance with Amazon’s requirements.1. Product PackagingProper packaging is the foundation of safe and efficient transport.Use Durable Cartons:Ensure products are packed in sturdy corrugated cartons that can withstand the rigors of transit. Reinforce the interior with custom foam or padding to prevent deformation or damage during shipping.Check for Damage:Inspect all packaging for rips, tears, or other damage. Amazon often rejects goods with damaged or deformed packaging.Seal Securely:Use strong packing tape to seal cartons, avoiding any chance of accidental opening during transit.2. Correct LabelingAccurate labeling is essential for Amazon to process your shipment smoothly.FBA Labels:Ensure every product and carton has the correct FBA label, which must be scannable and free of smudges or scratches.Special Handling Labels:For cartons weighing over 50 pounds, apply a "Team Lift" label.For those exceeding 100 pounds, use a "MechLift" label.These labels are mandatory for compliance with Amazon’s handling requirements.Placement Tips:Avoid placing labels on carton seams or edges. They should be on a flat surface, fully visible.3. Compliance with Size and Weight LimitsAdhering to Amazon’s size and weight restrictions reduces the risk of delays or rejections.Weight Limits:No single carton should weigh over 50 pounds unless explicitly allowed for specific products or warehouse policies. Always verify weight regulations for your designated fulfillment center.Volume Restrictions:Ensure that cartons are not excessively large, as oversized boxes can create handling challenges and attract additional fees.Mark Oversized Cartons:If a carton exceeds standard dimensions or weight, clearly mark it as oversized to alert handlers and prevent mismanagement.4. Efficient Loading TechniquesProper loading techniques are critical to protecting your goods during transport and ensuring efficient unloading at the warehouse.Avoid Overloading or Underloading:Load cartons with balanced spacing. Avoid packing too tightly or too loosely to minimize movement during transit.Stair-Step Pattern Near Doors:Arrange the last two rows in a stair-step pattern. This configuration facilitates smoother unloading at Amazon’s docks.Leave Space at the Top:Maintain at least 8 inches (20 cm) of clearance at the top of the container to avoid issues with overhead beams or forklift access.Carton Gaps:Leave at least 3 inches (7.6 cm) between cartons to prevent them from getting stuck during handling.5. Implement Safety MeasuresTo prevent damage or shifting during transit, secure your shipment thoroughly.Space Between Last Row and Door:Leave a buffer zone of at least 8 inches (20 cm) between the last row of cartons and the container doors.Stabilizing Equipment:Use tools like dunnage bags, non-metal strapping, bracing rods, or safety nets to secure the cargo and prevent it from shifting. Avoid using sharp materials that might damage cartons.6. Prepare Necessary DocumentationBefore shipping, ensure that all required documents are completed and accurate.Customs Clearance Documents:Include detailed product descriptions, invoices, and any other paperwork necessary for customs processing.FBA Shipment Plan:Confirm that the shipment is accurately documented in your Amazon Seller Central account to avoid discrepancies.Backup Copies:Keep digital and physical copies of all shipping documents in case of emergencies.7. Understand FBA FeesHaving a clear understanding of FBA fees helps you budget effectively and avoid surprises.Storage Fees:Amazon charges storage fees based on the time your goods stay in their warehouse. Familiarize yourself with both standard and peak-season rates.Handling Costs:Oversized, heavy, or non-compliant shipments may incur extra handling charges.8. Insurance and Inventory MonitoringProtecting your shipment and tracking its journey are vital for peace of mind.Shipping Insurance:Purchase transportation insurance to cover any potential loss or damage during transit.Real-Time Monitoring:Use inventory tracking tools to monitor the shipment status and confirm its safe arrival at the designated FBA warehouse.Additional Tips for SuccessPartner with a reliable freight forwarder experienced in FBA shipments.Conduct a final inspection of the container before sealing it for transit.Maintain open communication with your logistics provider to address any last-minute issues.By following these steps, you can significantly reduce risks and streamline the process of delivering your FBA shipments to Amazon’s warehouses. Proper planning and meticulous execution will not only ensure compliance but also enhance your operational efficiency.FAQsWhat is the maximum weight allowed for FBA cartons?The maximum weight for FBA cartons is typically 50 pounds unless otherwise specified by Amazon.Why should I leave space at the top of the container?Leaving 8 inches of space helps prevent handling issues and ensures compliance with Amazon’s unloading procedures.What safety measures can prevent cargo shifting?Use dunnage bags, straps, or safety nets to secure goods and maintain stability during transit.
Subscribe To Our Newsletter
Join our mailing list to receive the latest news andtips for Amazon sellers