Chinese commodities are becoming more and more popular with global buyers thanks to the prospering development of the overseas warehouse model.
Overseas warehouses are warehousing facilities established overseas that provide basic services for Chinese manufacturers, such as storage, transferring, sorting, packaging, in-situ processing and delivery. They also offer value-added services, helping Chinese manufacturers with order processing, customs affairs, refunding, financing and overseas distribution.
Cross-border e-commerce, a new channel for foreign trade, has achieved rapid progress in China over recent years. As an important part of the business model and a new type of foreign trade infrastructure, overseas warehouses are playing a constructive role in helping foreign trade enterprises lower costs, increase efficiency and smoothen the supply chain.
On Sept. 21, a consumer from the Kingdom of Bahrain received a capsule coffee machine and a milk frother. The two devices, manufactured by Chinese company HiBREW and sent from an overseas warehouse in Saudi Arabia, were delivered to the destination only two days after the online order was placed.
HiBREW is not the only example. So far, cross-border e-commerce platform AliExpress, in cooperation with Cainiao, a Chinese logistics company launched by e-commerce giant Alibaba, has established over 20 overseas warehouses in 11 countries and regions, which cover a total area of 860,000 square meters.
In its Europe market, AliExpress is now able to deliver products to consumers within two days. Besides, the company also offers consumers a Worry-Free 15-day return and exchange service. Since this year, the company has begun entering emerging markets such as Mexico and Israel.
According to data released by China's Ministry of Commerce (MOFCOM), China had over 2,000 overseas warehouses as of the end of the last year, which covered a total area of more than 16 million square meters.
"The overseas warehouse model is a new business form of China's foreign trade and an important infrastructure supporting cross-border e-commerce and other new forms of foreign trade in the future," said Li Mingtao, chief e-commerce expert with the China International Electronic Commerce Center under the MOFCOM, adding that the development of cross-border e-commerce is inseparable from the strong support of overseas warehouses.
A complete overseas warehouse system can further improve cross-border e-commerce enterprises' service capability, provide purchase better experience for overseas consumers, and significantly lower logistics and warehousing costs, thus improving the core competitiveness of these enterprises, the expert noted.
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