Overseas warehouse vs. direct delivery: Which logistics model is more cost-effective for kitchenware export?

1. Overview of two logistics models
   Overseas warehouse model: transport kitchenware products in batches to local warehouses in the target market in advance, and ship them directly from the local area after the customer places an order.

Direct delivery model: after the customer places an order, the products are shipped directly from the domestic market and delivered to overseas customers through international express or postal parcels.

2. Cost Comparison Analysis
3. Cost Structure of Overseas Warehouse Model
   First-leg Transportation Fee (Sea/Air Bulk Transportation)

Warehouse Management Fee (Charged by Volume/Time)

Local Delivery Fee (Last Mile)

Possible Cost of Unsalable Inventory

Tariffs and VAT (Paid in Advance)

2. Cost Structure of Direct Shipping Model
   International Shipping Fee per Piece (Express/Postal)

Packaging Material Fee

Possible Tariffs (Beared by Customer)

High Return and Exchange Cost

Typical Cost Comparison (Take 1kg Kitchenware as an Example):

Project Overseas Warehouse (USA) Direct Shipping (China to the US)
Transportation Cost per Piece $1.5-$3 $8-$15
Average Time 1-3 Days 7-20 Days
Warehouse Cost $0.5-$1/Month/Piece None
Minimum Order Quantity High Low
III. Applicable scenario analysis
Overseas warehouses are more suitable for:
Hot-selling kitchenware with stable sales and fast turnover (such as silicone spatulas, measuring cups, etc.)

High-value, heavy products (such as cast iron pots, food processors)

Markets with high timeliness requirements (such as 2-day delivery required by Prime members)

Stocking before promotional seasons (such as Black Friday)

Direct shipping is more suitable for:
Low-priced, light and small kitchenware (such as peelers, baking molds)

New product trial sales stage

Long-tail, personalized customized products

Niche markets with unstable order volumes

IV. Comprehensive decision-making recommendations
Sales test method: New products are first tested with direct shipping, and overseas warehouses are considered when monthly sales exceed 100 orders

Mixed mode:

Put hot-selling models in overseas warehouses

Long-tail products are kept in direct shipping

Replenish overseas warehouses before peak season and reduce inventory during off-season

Financial calculation formula:

text
Overseas warehouse break-even point = (overseas warehouse fixed cost) / (Increase in gross profit of single product)
Risk control:

Overseas warehouse: control the first batch of inventory to avoid unsalable goods

Direct delivery: choose logistics with tracking number to reduce the loss rate

V. Industry data reference
According to the data of cross-border e-commerce kitchenware category in 2023:

The average return rate of sellers using overseas warehouses is 3-5% lower

The conversion rate of overseas warehouse products is 40-60% higher than that of direct delivery

However, unsalable inventory in overseas warehouses accounts for about 15-20% of SKUs

Conclusion: For mainstream kitchenware products, when the monthly sales volume exceeds 80-100 pieces, overseas warehouses are usually more economical; for long-tail products or new markets, it is recommended to adopt the direct delivery model to reduce risks.