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Advantages, Disadvantages, and Selection Methods of FBA Overseas Warehouse Services in the United States

2023-04-13 17:42:10Shenzhen All-in Logistics Co.,Ltd.

Friends engaged in cross-border e-commerce in the United States should be familiar with overseas warehouses in the United States. The existence of overseas warehouses in the United States has provided many conveniences for the development of cross-border e-commerce. For overseas warehouses in the United States, there a...
Friends engaged in cross-border e-commerce in the United States should be familiar with overseas warehouses in the United States. The existence of overseas warehouses in the United States has provided many conveniences for the development of cross-border e-commerce. For overseas warehouses in the United States, there are both advantages and disadvantages. Only in the appropriate products and environment can the advantages of American overseas warehouses be fully utilized.

So, what are the advantages and disadvantages of American overseas warehouses, and how should we choose American overseas warehouses? The editor summarizes for you as follows:
1、 Advantages of US overseas warehouses:
1. Reduce logistics costs: Directly shipping from overseas warehouses in the United States to customers is equivalent to the speed of domestic express delivery, but lower than the cost of shipping from China.
2. Fast delivery: Face to face transportation from overseas warehouses in the United States, solving complex problems such as transportation, customs clearance, and customs declaration, without worrying about the waiting time and cost of warehouse goods clearance.
3. Higher product exposure: If the platform or store has its own warehouse overseas, local customers will prefer local delivery when choosing to shop because it can greatly shorten the time for buyers to receive goods. The advantages of overseas warehouses can also give sellers their own unique advantages, thereby increasing product exposure and increasing store sales.
4. Better user experience: Because not all products can be received, it can satisfy customers. In intermediate cases, customers can inquire, return, exchange, reship, etc. For sellers, adjustments can be made in overseas warehouses in the United States, greatly saving logistics time. To a certain extent, it can not only regain the favor of buyers, but also save transportation costs and reduce losses.
5. It is more conducive to exploring new markets: with the least investment and the shortest time, entering overseas markets, accumulating more resources, expanding target markets, and expanding business scope.
2、 Disadvantages of US overseas warehouses:
1. Mandatory US overseas warehousing fee: When the seller chooses an overseas warehouse, they must calculate the corresponding cost and compare it with the cost of their current delivery method.
2. Overseas warehousing requires sellers to have a certain amount of inventory: if some products are specifically customized for some buyers, they are not suitable for overseas warehousing sales.
3、 How to optimize overseas warehouses in the United States
I personally believe that if you choose an overseas warehouse in the United States, it is best to measure it based on your company's products For example:
1. Large size and weight products: For example, using overseas warehouses for household gardening, automotive parts, and other products can break product specifications and reduce logistics costs.
2. For products with high unit price and high gross profit margin, such as electronic products, jewelry, watches, glass products, etc., choosing an overseas warehouse in the United States can control the damage and loss rates at a very low level, reducing the risk of sellers selling high-value goods.
3. High turnover products: best-selling products such as fashion and fast moving consumer goods, buyers can quickly process orders and recover funds through overseas warehouses in the United States.
4. There are obvious off-season products: if the peak season is in line with the theme of European and American holidays, short-term use of overseas warehouses. For holiday consumer goods, buyers pay more attention to timeliness.
5. Products with larger single shipment: Although the sales rate is relatively slow, products that have formed a certain sales scale can also choose to go to overseas warehouses in the United States.
6. Products that cannot be shipped to small domestic packaging, such as liquid products with higher profits or products containing lithium batteries, can also choose overseas warehouses in the United States.
The above is a summary by the editor of the advantages and disadvantages of American overseas warehouses, as well as how to choose American overseas warehouses. Based on the situation of our own products, we will choose suitable cross-border logistics service providers to fully utilize the advantages of overseas warehouses in the United States, which will definitely help your cross-border e-commerce trade.

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