由 caicai8478 - Basic concepts of the two models
Overseas warehouse model
Overseas warehouse refers to Chinese companies transporting goods in bulk to warehouses in target market countries for storage in advance. When overseas customers place orders, the goods are shipped directly from local warehouses. This model requires companies to build or rent storage space overseas.
Direct mail model
Direct mail means that when overseas consumers place orders, the goods are shipped directly from China and delivered to consumers through international express or postal services, without the need to prepare goods overseas in advance.
- Comparison of the advantages and disadvantages of the two models
Advantages of overseas warehouses
Fast delivery time: local delivery, usually 3-5 days
Convenient returns and exchanges: more convenient after-sales service
Good customer experience: shorten waiting time and improve satisfaction
Reduce logistics costs: bulk transportation saves unit cost
Support large items: suitable for large and heavy products
Disadvantages of overseas warehouses
Large initial investment: storage rent and management costs are required
Inventory risk: unsalable inventory may be generated
Low flexibility: difficult to adjust quickly to market changes
Capital occupation: need to prepare stocks in advance to occupy funds
Advantages of direct mail
Low startup cost: no overseas warehouse investment required
Low inventory risk: delivery according to order, no unsalable risk
Flexible operation: product line can be adjusted quickly
Suitable for small batches: suitable for new market testing
Disadvantages of direct mail
Long delivery time: usually 7-20 days
High logistics costs: high unit transportation costs
Complex returns and exchanges: cumbersome international return and exchange procedures
Poor customer experience: long waiting time may affect evaluation
- How to choose a suitable model?
Situations suitable for overseas warehouses
Products are large and heavy (such as furniture and home appliances)
Stable sales and predictable market demand
Concentrated target markets (such as focusing on the US or European single market)
Pursue branding and localized operations
Products have high unit prices and can bear storage costs
Hot-selling products that require frequent replenishment
Situations suitable for direct mail
Products are small and light (such as accessories and small electronic products)
New market testing phase
Small-batch sales in multiple markets (such as covering multiple countries at the same time)
Short product life cycle or fast replacement
Limited funds for start-ups
Customized products or pre-sale model
IV. Hybrid model: flexible solutions
Many successful companies adopt the hybrid model of “overseas warehouse + direct mail”:
Hot-selling products go to overseas warehouses to ensure the main product experience
Long-tail products go to direct mail to reduce inventory risks
Stock overseas warehouses before the peak season and keep them at ordinary times Maintain direct mail capability
Use overseas warehouses in core markets and direct mail in marginal markets
V. Decision-making recommendations
Evaluate product characteristics: size, weight, shelf life, value
Analyze sales data: sales stability, market concentration
Calculate cost comparison: including comprehensive costs such as warehousing, logistics, and capital occupation
Consider customer expectations: the sensitivity of consumers in the target market to delivery time efficiency
Evaluate corporate resources: financial strength, operational capabilities, and risk tolerance
VI. Future trends
With the development of cross-border e-commerce, two models are merging:
The rise of the “virtual overseas warehouse” model (showing local shipments, but actually mailed directly from China)
Third-party overseas warehouse services lower entry barriers
Logistics technology advances shorten direct mail time efficiency
Big data analysis helps more accurate overseas warehouse stocking
The final choice should be based on the specific situation of the company. It can be considered to start with a small-scale test and gradually optimize the logistics strategy.