Advantages and disadvantages of overseas warehouses

The advantages of overseas warehouses are easy to summarize:

Shortening the time for consumers to receive goods, reducing the overall cross-border logistics cost, improving the efficiency of supply chain, reducing the risks of geographical and customs inspection, and

enhancing the store and brand image.

However, overseas warehouses also have the following disadvantages:

High cost: establishing overseas warehouses requires a lot of capital and human resources, including leasing, decoration, equipment procurement and other costs, and it is also necessary to recruit warehouse administrators and other personnel.

it is difficult to manage: overseas warehouses need to cross national boundaries, so it is difficult to manage. Transnational law, taxation, customs and other matters also need to be considered.

Inventory risk: The inventory management of overseas warehouses also needs to face some challenges, including the problems of goods sold out, 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 warehousing. It is a good solution to use overseas warehouses provided by cross-border e-commerce platforms. For example, Lotte Overseas Warehouse in France does not require a minimum number of warehousing, which helps enterprises reduce inventory risks and management costs.