Shorten the time for consumers to receive goods, reduce the overall cross-border logistics cost, improve the efficiency of supply chain, and reduce the risk of geographical and customs inspection.
Enhance the store and brand image.
However, overseas warehouses also have the following disadvantages:
High cost: the establishment of overseas warehouses requires a lot of capital and human resources, including the cost of leasing, decoration, equipment procurement, and the recruitment of warehouse administrators.
Difficult management: overseas warehouses need to cross national boundaries, which is difficult to manage. Transnational legal, tax, customs and other matters also need to be considered.
Inventory risk: the inventory management of overseas warehouses also needs to face some challenges, including problems such as sold out goods, expired shelf life and unsalable sales, which will cause economic losses to enterprises.
In short, cross-border enterprises should weigh the cost, management difficulty and possible inventory risks when choosing how to do overseas warehouses. Using overseas warehouses provided by cross-border e-commerce platforms is a good solution. For example, Lotte Overseas Warehouse in France does not require the minimum warehousing times, which helps enterprises to reduce inventory risks and management costs.