In the booming development of cross-border e-commerce, medium and large-sized commodities such as furniture, home decoration, gardening supplies and outdoor equipment are gradually becoming new growth highlights.
With the continuous improvement of the basic logistics system, the sales of these commodities have shown a significant growth trend, attracting many medium and large sellers to join this track.
However, high logistics costs have become the primary problem faced by many sellers.
So, can overseas warehouses help sellers of medium and large items optimize logistics costs?
According to Frost &
Sullivan data shows that the global furniture and home products market sales through online channels will reach a staggering US$437.3 billion in 2023, with a compound annual growth rate of 16.6%.
As a major exporter of such goods, China’s overseas B2C e-commerce market has also shown explosive growth.
GMV reached RMB 773.8 billion in 2023 and is expected to grow to RMB 1,604.8 billion by 2028.
On cross-border e-commerce platforms such as Amazon, Wayfair, and Walmart, Chinese sellers have achieved outstanding performance, especially the GMV of furniture and home products has increased significantly.
Although the market prospects are very broad, the road for medium and large-sized commodities to go overseas is not smooth sailing. It mainly faces the following challenges.
The first is the high cost of returns and exchanges. The return and exchange process for large items is complicated, not only involves high shipping costs, but may also lead to devaluation of the goods, which puts great pressure on the seller’s capital flow.
Secondly, the problem of damage during transportation is also more prominent. Large goods are easily damaged during transportation, so the requirements for packaging and packaging are higher, requiring more sophisticated packaging technology and higher-cost protective materials.
Furthermore, the cost of last-mile logistics is high. At present, the logistics cost of many large products accounts for 30% of the turnover, and additional costs such as overlength and overweight may also be incurred during last-mile logistics.
Finally, long product turnover cycles are also a problem. The long production cycles and slow inventory turnover of some large-ticket items require sellers to have stronger financial strength and refined inventory management capabilities.
Faced with these challenges, the overseas warehouse strategy stands out and has become an effective solution for cross-border e-commerce sellers of medium and large items.
Through overseas warehouses, sellers can ship goods in batches to warehouses in the destination country in advance, reducing the cost of scattered transportation.
Moreover, most overseas warehouses currently provide services such as transit, returns and label exchanges. On the one hand, they can quickly replenish the inventory of warehouses on Amazon and other platforms to cope with sudden market demand; on the other hand, they also help sellers reduce the logistics pressure of returning and exchanging goods.
At the same time, Yicang WMS overseas warehouse system also has corresponding product solutions to help overseas warehouse companies better meet the business needs of cross-border sellers.
The system completely covers the four core business scenarios of overseas warehouses: dropshipping (large/medium/small items), return and label exchange, FBA transshipment, and clearing delivery. It has now achieved global regional coverage, which can fully meet the needs of sellers to expand diversified businesses and seek growth.
It is undeniable that medium and large-sized goods have shown great potential in the field of cross-border e-commerce, but they also face a series of challenges such as high logistics costs, vulnerability to damage, and high return and exchange costs.
With its unique geographical advantages and service flexibility, overseas warehouses have become the key to solving the cross-border problems of large-ticket commodities.
Sellers can click on the relevant links to make an appointment for a free demonstration or direct online consultation to obtain more information about Yicang WMS, thereby improving their core competitiveness.
