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 a China Warehouse?
A China warehouse functions similarly to any other warehouse. It is a large facility used to store goods and ship them to customers. The term has become particularly popular among eCommerce businesses looking to ship products from China.
Depending on its use, a warehouse in China can be owned and operated by various entities such as logistics companies, manufacturers, suppliers, wholesalers, and occasionally, local governments.
China Warehouse Services: Overview
When you think of China warehousing, keep in mind that this can mean several things. Below are some of the primary services offered by China warehouses for eCommerce.
1. Storage and Warehousing
Storage and warehousing are key services in China 3PL warehouses. Depending on your needs, goods can be stored for short or long periods. For instance, if you receive a shipment from a supplier in China, but the factory doesn’t have a space to hold it until shipping arrangements are made, the warehouse can take care of that. This temporary storage can be critical in managing inventory during peak seasons or while waiting for the next shipping window.
2. Source Products from China
Product sourcing is one of the most important services when operating in China. It involves purchasing products from local suppliers, performing quality checks, and moving products from suppliers to a warehouse for storage before shipping. A good China warehouse will have established networks and can help source reliable products that meet your brand’s standards.
3. Inventory Management
Effective inventory management is essential to maintaining a smooth supply chain. With warehouse management, goods are tracked, stored, and monitored for the purpose of selling. China 3PL warehouses that offer inventory management typically include detailed records on product quantities, SKU location, and real-time stock updates. This helps to ensure that you never run out of stock or overstock, keeping your operations efficient and cost-effective.
4. Kitting
Kitting involves bundling various items together into one single package. This is an essential service for eCommerce businesses that offer multi-item purchases, like gift sets or subscription boxes. A China warehouse that offers kitting services allows you to prepare your products for shipment in bundles, which helps reduce the time and cost involved in fulfilling orders.
5. China Fulfillment
China order fulfillment is one of the most important services provided by China 3PL warehouses. This process includes picking, packing, and shipping orders from a warehouse to customers worldwide. This service is essential for eCommerce businesses, and Chinese 3PL companies, particularly those in Shenzhen, often specialize in efficient fulfillment operations.
6. Custom Packaging
Custom packaging services are available in some China warehouses offering China 3PL services, providing eCommerce brands the option to design their packaging to reflect their brand identity. This can include custom-made boxes, branded tape, or labels that remove Chinese text, ensuring that your products arrive to customers looking as they should.
7. Amazon FBA
For eCommerce brands selling on Amazon, Fulfillment by Amazon (FBA) is a key service that ensures your products meet Amazon’s packaging requirements. A China warehouse offering FBA services can prep and pack your products according to Amazon’s standards, making it easier to ship directly to any of Amazon’s warehouses around the world. This is especially useful for sellers who need to meet Amazon’s stringent fulfillment and packaging rules.
8. Freight, Logistics, and Shipping Services
Some businesses sourcing products from China may choose not to fulfill orders from China directly. Instead, they might prefer to ship their products in bulk through air or sea freight with the help of freight forwarders. 3PL warehouses often work with freight companies to offer air, sea, and even ground shipping options, which can be essential for bulk orders and international distribution.
Types of China Warehouses
Not all China warehouses are created equal. There are several types of warehouses depending on the needs of your business. Below is a comparison table to help you decide which warehouse type is the best fit for your e-commerce business.
| Warehouse Type | Best For | Key Advantages | Disadvantages |
|---|---|---|---|
| Bonded Warehouses | Businesses looking to delay customs duties and tax payments. | – Delays customs duties – Can hold inventory without customs payments | – Not ideal for daily operations – Longer processing times |
| Private Warehouses | Large businesses needing full control over storage and distribution. | – Complete control over operations – Can be tailored to business needs | – Expensive – Limited flexibility for smaller businesses |
| Public Warehouses (Fulfillment Centers) | Small to mid-sized businesses looking for outsourced storage and fulfillment. | – Lower cost – More flexible – Outsourced logistics expertise | – Less control over operations – May not be customizable |
The table gives a quick overview of the different types of warehouses in China, helping you decide which one best aligns with your business needs. If you need flexibility, cost savings, and outsourced logistics support, public warehouses (also called China 3PL warehouses) are often the best option. For businesses that need full control or want to delay customs duties, private or bonded warehouses may be a better fit.
Advantages and Challenges of Using Warehouses in China
Benefits of China Warehouses
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Proximity to Factories
Many China warehouses are strategically located close to manufacturing hubs, which means quicker turnaround times from production sites to storage facilities. -
Cost Efficiency
While labor costs in China are rising, they remain lower compared to many other countries, making order fulfillment services more affordable. -
Avoidance of Customs Duties
Shipping products individually from China could be costly due to customs duties. Using a warehouse can help reduce these costs by consolidating shipments and preparing for duty processing more efficiently. -
Advanced Infrastructure
China boasts world-class logistics infrastructure, including efficient ports, airports, and transportation networks, enabling businesses to ship products globally at competitive rates.
Challenges of Using China Warehouses
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Longer Shipping Times
Even with air freight, shipping from China can take longer compared to domestic fulfillment. This makes it harder to offer 2- or 3-day delivery for global customers. -
Language Barriers
Communication with Chinese warehouse staff can be difficult, especially if there are language barriers. Ensuring that your 3PL provider offers English-speaking support is essential for smooth operations.
Warehousing Costs in China
The cost of using a China warehouse depends on several factors, including location, order volume, and additional services. For instance, warehouses in cities like Shenzhen may charge more than those in other areas due to their proximity to ports and airports.
The general pricing structure is as follows:
- Location: Warehouses in large cities tend to be more expensive.
- Order Volume: Larger order quantities often lead to lower per-unit costs.
- Added Services: Basic storage costs are low, but services like eCommerce logistics, kitting, and packaging will increase the cost.
How to Ship from China Warehouses
Shipping from China warehouses is crucial for global operations. Here are some of the most common shipping methods:
-
China Post:
This is the government postal service, usually the cheapest option, but with limited tracking capabilities. Delivery times can range from 1 to 4 weeks. -
Private Carriers:
Companies like DHL, FedEx, and UPS offer faster and more reliable services (2-5 days), but they are significantly more expensive. -
China-Based Shipping Companies:
Providers like 4PX and Yun Express are affordable alternatives to private carriers. Delivery typically takes 5-10 days. -
Air Freight:
Air freight is faster than sea but comes with size and weight limitations. Expect 7-10 days for delivery. -
Sea Freight:
The most economical shipping method for large quantities, but it takes 30-40 days on average to reach international markets.
Tips for Choosing the Right China Warehouse
When selecting a China warehouse, take into account these factors to ensure it meets your business needs:
- Clarify Requirements: Define order volume, product type, and any special handling needs.
- Genuine Fulfillment Centers: Ensure the China warehouse offers full fulfillment services if you are outsourcing order fulfillment.
- Location: Opt for a China warehouse near factories and major transport hubs such as Shenzhen.
- Shipping Line Connections: Ensure the warehouse has reliable and affordable shipping services to meet your global delivery needs.
- Cost Transparency: Compare warehouse quotes carefully to avoid hidden fees.
- Customer Service: Choose a warehouse with strong customer service in both Chinese and English.
- E-commerce Integration: Ensure the warehouse integrates with platforms like Shopify, BigCommerce, or Amazon for seamless order fulfillment.
- Additional Services: Consider warehouses offering services like custom packaging, quality control, or international shipping support.
Lansil Global provides global fulfillment, product sourcing, and logistics services for e-commerce brands of all sizes. Based in Shenzhen, we have a China warehouse ready to accommodate all your business needs. From inventory management to order fulfillment, we can handle it all for you. If you need faster shipping in the U.S., we also have two fulfillment centers to keep your stock close to your market.
Get in touch today to learn how our China warehouse and 3PL services can streamline your operations.
