Three Reasons of Fulfillment Centers Start a Business in Shenzhen

As a cross-border e-commerce entrepreneur, you will be surrounded by many choices when finding the warehouse address. However, you will take many detours on the way to your cheapest fulfillment service. What’s worse, some Amazon sellers have been very confused about global ecommerce fulfillment owing to the Amazon warehouse fire and COVID-19.

To tell you the truth, Shenzhen warehouse plays an inportant role in the international orfer fulfillment. A latest study concerning Chinese warehouse location indicated that 75% warehouses come from Shenzhen. Here we have summarized three reasons as shown below:

As you can check in Google Maps, Shenzhen is near the international parcel processing centre——Hongkong, which provides more convenience for picking, packing and shipping. Take Amazon ePacket tracking as an example, Shenzhen warehouse can sent the items directly if your customer has ordered successfully from your webstore. That is to say, you don’t need to manage your own warehouse or distribution center.

Shenzhen is the birthplace of China’s reform and opening up, where many foreign trade enterprises and drop-shippers had been created. So they have more experience in the field of warehousing and shipping for e-commerce, and it is hard to find disorderly shipping and wrong delivery. In this way, you can reduce business risk and increase customer satisfacton.

During COVID-19 pandemic, the majority of e-commerce sellers want continuous selling on AliExpress, eBay and Amazon. Therefore, it is essential to reduce the chance of infection with COVID-19, whether it is warehouse or transportation staff. The number of people diagnosed in Shenzhen is cleared on May 21. Additionally, the government insists on strict pandemic prevention work, requiring everyone in Shenzhen to measure body temperature every day, especially warehouses and catering staff, mask wearing and hand washing are indispensable work.

All in all, you can get a fully automated with less money and time if you choose the most suitable order fulfillment center, and Shenzhen is a competitive choice.

3 Signals on Cross-border E-commerce Seen from the CIIE

On November 5, the second China International Import Expo (CIIE) opened in Shanghai. According to the data, more than 3000 enterprises from more than 150 countries and regions participated in the exhibition, and the number of participating countries and enterprises exceeded the first one. Meanwhile, T-Mall Global, Jingdong Global, VipShop International, Koala Haigou, Suning Global Outsourcing, Beibei, Yunji, Meidun Mom and other cross-border importer and e-commerce platforms have appeared in the Expo.

According to the monitoring of e-commerce large database, in 2018, the transaction scale of import cross-border e-commerce industry reached 1900 billion yuan (including B2B, B2C, C2C and o2o modes), an increases of 26.66% year on year. Since 2001, the transaction scale of import cross-border e-commerce industry has maintained continuous growth.

Release positive signals for cross-border e-commerce

The second China international cross-border e-commerce development summit, and the Cross-border E-commerce promotion trade development summit will be held during the Expo. Cross-border e-commerce has become a powerful growth point for the development of China’s foreign trade. With the introduction of the e-commerce law and new policies on cross-border e-commerce, the gradually expanded scope of application of import policies, and the continuous increase of domestic demand, cross-border e-commerce will usher in a new round of quality improvement and upgrading.

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Editor of Chinadivision found, at least 3 signals can be seen from the summits.

Signal 1: many international brands take Chinese cross-border e-commerce enterprises as a bridge to enter China, strengthen international resource cooperation, and give play to the advantages of local industrial clusters.

Signal 2: domestic cross-border e-commerce platforms seek new opportunities for cooperation, promote transnational cooperation and bring more trade opportunities.

Signal 3: accelerate the development of cross-border import market to meet diversified consumer demand.