DM FulfillmenteLogisticsWMS & OMS
The third party Warehouse
The third party warehouse refers to the transnational logistics mode in which enterprises export goods to the third party warehouse in batches according to the general trade mode to achieve local sales and distribution.
Different from self-built warehouses and FBA warehouses, the management right of self-built warehouses is in the hands of cross-border e-commerce enterprises or in cooperation with warehousing enterprises.
Establish and improve the external warehouse business by leasing or cooperating with other enterprises, and realize the construction and business improvement of the external warehouse.Leasing mode will generate operating costs, logistics costs and storage costs, while cooperative construction mode will only generate logistics costs.
Advantages of 3pl warehouse
If the FBA of Amazon is to be compared, many problems of warehouses can be communicated with customers in a timely manner. In terms of customs clearance, it can also provide customers with receiving goods and tariffs, and the price is much cheaper than FBA.
Generally speaking, the advantages of the third-party warehouse are as follows:
1. It helps increase profit margins on single products. According to eBay, the average price of goods stored in warehouses is 30% higher than direct mail.
2. A stable supply chain helps increase sales. Relevant data show that the sales volume of goods shipped from warehouses is several times higher than that of goods shipped directly from China in the same category.
3. The centralized transportation mode adopted by warehouses breaks through the restrictions of commodity weight, volume and price, which is conducive to expanding the variety of sales.And it can greatly reducing the average freight of a single commodity. For example, when the weight of goods exceeds a certain weight, there will be obvious cost advantage, which also effectively reduces the cost of logistics management.
4. Stable sales and more and better buyer feedback will improve the seller’s customer performance. Data on eBay shows that sellers who use warehouses tend to have higher rates of positive reviews.
Lack of third party warehouse?
However, the third-party warehouse also has some shortcomings, such as the need to rely on the logistics system to fully monitor and manage inventory, inventory early warning and other functions; Secondly, it is difficult to control the localization service and operation management of the warehouse, which is also a problem that the sellers are worried about.
In general, with the rapid development of export business and global e-commerce, the demand for warehouses is becoming more and more obvious, and the corresponding value-added services of third-party warehouses such as processing, finance and customer service are constantly improved and optimized.
