China Warehouse Services Explained: Supply Chain & Fulfillment in China
It’s hard to talk about eCommerce and global growth without mentioning China. The country has become an epicenter of logistics and order fulfillment. If you’re looking to expand your business, China warehouse is now a necessity, given the many benefits it provides. So what is China warehouse and how to find one? Keep reading to learn more about China warehousing and fulfillment services and how they can benefit your brand. What is China warehouse? A China warehouse is like any other warehouse: a large facility utilized to store goods and ship them. The term has become so popular as it’s commonly used among eCommerce businesses looking to ship products from China. Depending on what it’s being used for, a warehouse can be owned and operated by logistics companies, manufacturers, suppliers, wholesalers, and sometimes local governments. China warehouse services: Overview China warehousing can refer to different things. Here are some of the main services of a warehouse: Storage and warehousing Storage and warehousing means goods can be stored for a short or long period of time depending on your needs. If you receive a shipment from a factory, for example, the factory may not have a warehouse to store them for you while shipping can be arranged, so a China warehouse can help with that. Source products from China Product sourcing is the process of getting products from suppliers in China. It includes purchasing the products, performing quality checks, and moving the products from a supplier to a China warehouse first before arranging for shipping. Inventory management Inventory or warehouse management takes logistics up a notch. This service refers to the goods that are stored in a warehouse for the purpose of selling. This means there will be a detailed record of the inventory, including how many SKUs and their location in the warehouse. Kitting Kitting is a service where the warehouse offers to bundle items that are ordered together, creating one single unit that can be stored and shipped to customers. Kitting is a common service that eCommerce businesses rely on when storing goods at a warehouse. China fulfillment China order fulfillment is the most important service. It refers to picking, packing, and shipping orders from a China warehouse to anywhere in the world. The service is often offered by Chinese 3PL companies, which are often based in Shenzhen. Custom packaging Custom packaging is related to order fulfillment. It offers eCommerce brands the option to customize their packaging before the order is shipped. These customizations include branding, removing Chinese letters from the main box, and using custom-made boxes. Amazon FBA Fulfillment by Amazon, or FBA, is a service where packages are prepped at a China warehouse so they can meet the packaging requirements of Amazon. A China warehouse can be very helpful for FBA sellers, as the stocks can be sent to any Amazon warehouse around the globe. Freight, logistics, and shipping services Some businesses that buy their products from China may not want to fulfill their orders there. Instead, they can ship their products in bulk by air or sea with the help of freight forwarders. 3PL companies that operate a warehouse often offer air and sea freight services. Types of China warehouses Warehouses in China are not the same. There are a few types that serve different purposes depending on your business needs: Bonded warehouses Bonded warehouses in China are often operated by the government. Its primary purpose is to store your goods for a while before processing customs clearance and paying any duties. Aside from its storage options, bonded China warehouses are not very commonly used for eCommerce purposes. Private warehouses Private warehouses are dedicated storage facilities often owned, operated, and used by one person or company. Large companies often use private warehouses to store their goods so they can have more control over the storage, handling, and distribution process. Public warehouses (fulfillment centers) Public warehouses, often called 3PL warehouses or China fulfillment centers, are large storage facilities that are owned and operated by 3PLs and other logistics companies to serve other businesses. They often store goods for different eCommerce brands and offer various services such as inventory management, eCommerce logistics, shipping, and more. Advantages and challenges of warehouses in China Using China warehousing services has its pros and cons. If you’re planning to work with a China warehouse, here’s what you need to know: Benefits of China warehouse Close to factories: Most warehouses in China are close to factories, which speeds up the movement of goods from production sites to storage facilities. Low cost: While Chinese labor cost is increasing, it’s still lower than in so many other countries especially when doing order fulfillment. Ability to avoid customs duties: Having your goods shipped individually from China to your country could help save a lot on customs duties. Advanced infrastructure: From logistics companies to efficient airports and ports, Chinese infrastructure is advanced enough to handle any type of business and order volume. Challenges of using a China warehouse Can’t offer faster shipping: Shipping directly from China to other parts of the world could take a few days even with air shipping. So you won’t be able to offer 2- or 3-day delivery to your customers. Language barriers: Working with a Chinese warehouse means you have to deal with Chinese workers, which could be difficult sometimes due to language barriers. Warehousing cost in China It’s hard to find a fixed cost for warehousing in China, and that’s because the price depends on several factors: Location: Not all locations in China are the same. Warehouses in Shenzhen, for instance, may charge more than others in Shanghai. Order quantity: Your order quantity plays a vital role in determining the warehousing cost. The higher your order quantity, the lower the price is. Added services: If you use the warehouse for just storage, prices would be quite low. When using more services such as eCommerce logistics and shipping, the cost would increase. How to ship from China warehouses? Shipping from China
