What are the Factors Driving the Rapid Development of Warehousing Companies?

In recent years, third-party warehousing has developed at an incredible speed, greatly satisfying the various needs of e-commerce customers. So what factors drive the rapid development of e-commerce warehousing?

The fundamental cause is the popularity of online shopping in the internet age. The emergence of e-commerce industry has greatly promoted the transformation from traditional warehousing to modern warehousing. In order to meet the increasing demands of e-commerce customers for delivery, the order fulfillment warehouse must be able to ensure the rapid improvement of their business capabilities to attract more e-commerce customers, which makes it impossible for warehousing companies to slack off. If they are not careful, they will fall behind and cannot keep pace with the progress in the e-commerce era.

The second reason is the increase in consumer demand. With the advent of the fast food era, most consumers are reluctant to spend too much time waiting for the delivery of goods purchased online. Amazon sellers often encounter situations where consumers are badly rated and returned because the delivery is slower. In order to help improve the evaluation of their store, the third-party warehousing will ensure the timeliness of its own delivery as much as possible. From the location of the warehouse to the operation of the employees, the order will be sent to the express distribution center in the shortest time. To ensure that it can be delivered to consumers in the first place. So as to improve consumers’ evaluation of logistics and distribution.

In addition, intelligent warehousing also counts a lot. The advent of the era of information intelligence has also promoted the progress of automated warehousing, prompting third-party warehousing to be generally equipped with various types of automated warehousing equipment and professional management systems to ensure their own business capabilities.

Therefore, with the promotion of these factors, the warehousing industry of e-commerce can develop rapidly, which can bring better services to e-commerce sellers and help hem take the stress out of order fulfillment.

What will Happen to Drop Shipping in the Future?

Over the past decade, many Chinese drop shipping agents had embraced incredible success on account of lower shipping costs and better capability. Unfortunately, COVID-19 had a ripple effect on drop shipping agent and cross-border e-commerce companies, which caused a heated discussion about what will happen to the drop shipping business in the future.

Back to 2018, American President Trump announced that the United States was pulling out of the intergovernmental body called the Universal Postal Union after claiming that China has been taking advantage of the US. One year later, UPU announced that it reached a deal with the US and it approved President Trump’s request to collect higher fees on packages from international destinations. The agreement will go into effect on July 1, 2020 and American sellers can expect significantly hiked prices on their products. Basically, ePacket, a shipping option offered by Chinese and Hongkong merchants when shopping on popular Chinese marketplaces like Aliexpress, will no longer be price competitive and many American independent sellers will, if not go out of business, dramatically lose revenue.

But it is a fact that China is the world’s largest manufacturing country and a titan in the global exporting industry. According to statistics, China had assisted over 18 countries in the work of epidemic (South Korea, Italy, Japan, Iran, Pakistan, etc). Apart from sending medical teams, China also donated $20 million to the WHO, as well as masks, medicines, protective suits and other epidemic prevention materials to relevant countries. From the data, we can figure out the capability of Chinese Government, and so do the drop shippers. The local quarantine agency said Chinese outbreak appeared to be well contained, so there will be adequate staff in the order fulfillment center to achieve fast warehousing, packing and shipping.

In brief, Chinese drop shipping is the trend of e-commerce in the future, your business can be booming with the help of drop shipping agency.

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.